Nathan's Famous Under Investigation for Possible Fiduciary Breaches in $450 Million Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy NATH?
Source: PRnewswire
- Transaction Valuation: The deal between Nathan's Famous and Smithfield is valued at approximately $450 million, with shareholders receiving $102 per share in cash, indicating a high valuation that may impact long-term shareholder interests.
- Insider Benefits: Substantial benefits for insiders in the transaction raise questions about whether the Nathan's Famous board is fulfilling its fiduciary duties to all shareholders, potentially leading to shareholder dissatisfaction with management.
- Competition Restrictions: The transaction agreement imposes significant penalties on Nathan's Famous for accepting competing bids, which could limit the company's strategic options and affect its market competitiveness.
- Legal Investigation: Ademi LLP is investigating the conduct of Nathan's Famous board to assess compliance with fiduciary duties to all shareholders, which may lead to shareholder lawsuits and impact the company's reputation and stock price.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NATH?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NATH
About NATH
Nathan’s Famous, Inc. is a licensor, wholesaler and retailer of products marketed under its Nathan’s Famous brand, including its Nathan’s World Famous Beef Hot Dogs. The Company distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and 20 foreign countries. The Branded Product Program segment is engaged in the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators. The Product licensing segment includes royalties, from licensing a range of its branded products, including its hot dogs, sausage and corned beef products, frozen French fries and additional products, through retail grocery channels and club stores throughout the United States. The Restaurant operations segment is engaged in the sale of its products at Company-owned restaurants and earns fees and royalties from its franchised restaurants, including its virtual kitchens.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Investigation Background: Halper Sadeh LLC is investigating companies such as Nathan's Famous, Inc., SkyWater Technology, Inc., and Gold Resource Corporation for potential violations of federal securities laws and breaches of fiduciary duties, highlighting concerns over investor rights.
- Transaction Details: Nathan's Famous is being sold to Smithfield Foods for $102.00 per share in cash, SkyWater Technology is being sold for $15.00 in cash and $20.00 in IonQ common stock, and Gold Resource Corporation is being sold for 1.4476 shares of Goldgroup per share, with these financial structures potentially impacting shareholder interests.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, promising legal services on a contingency fee basis, aiming to secure increased consideration and additional disclosures for shareholders.
- Commitment to Legal Services: The firm represents investors globally, focusing on combating securities fraud and corporate misconduct, having successfully recovered millions for defrauded investors in the past, demonstrating its expertise in protecting investor rights.
See More
Investigation Alerts for Multiple Company Acquisitions
- Valaris Acquisition Investigation: Valaris Limited is set to be acquired by Transocean in an all-stock transaction valued at approximately $5.8 billion, with shareholders receiving 15.235 shares of Transocean stock per Valaris share, raising concerns about whether the board breached fiduciary duties by failing to ensure a fair process.
- Silicon Labs Acquisition Scrutiny: Silicon Labs will be acquired by Texas Instruments for $231.00 per share in an all-cash deal, representing a total enterprise value of about $7.5 billion, with investigations focusing on whether the board failed to conduct a fair process to ensure shareholders receive fair value.
- SkyWater Technology Acquisition Review: SkyWater Technology is being acquired by IonQ for $35.00 per share in a cash-and-stock transaction, implying a total equity value of approximately $1.8 billion, with investigations questioning whether the board breached fiduciary duties as the deal consideration is below the company's 52-week high of $36.27.
- Nathan's Famous Acquisition Investigation: Nathan's Famous will be acquired by Smithfield Foods for $102.00 per share in cash, representing an enterprise value of around $450 million, with investigations examining whether the board failed to ensure a fair process, as the deal consideration is below the company's 52-week high of $118.50.
See More
Nathan's Famous Q3 Revenue Decline Amid Acquisition News
- Revenue Growth: Nathan's Famous reported Q3 revenues of $34.31 million, an 8.9% increase from $31.52 million in the prior year, indicating a struggle to meet market expectations despite nominal growth.
- Earnings Decline: The diluted earnings per share fell to $0.75 from $1.10 a year earlier, representing a 31.8% decrease, which reflects a weakening in profitability that could dampen investor confidence.
- Acquisition Impact: Smithfield Foods announced its acquisition of Nathan's Famous for $450 million, leading to a 7% premarket jump in NATH shares, suggesting a positive market reaction and potential new opportunities for the company.
- Market Sentiment: Despite the decline in revenue and profitability, the acquisition news has buoyed market sentiment, as investors anticipate potential synergies and integration benefits that may support the stock price in the short term.
See More
Nathan's Famous Declares Quarterly Dividend of $0.50 per Share
- Quarterly Dividend Announcement: Nathan's Famous has declared a quarterly dividend of $0.50 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 1.97% reflects the company's attractiveness in the current market environment, potentially boosting shareholder confidence and enhancing its market position.
- Payment Schedule: The dividend is payable on February 27, with a record date of February 17 and an ex-dividend date also on February 17, ensuring shareholders receive timely returns and further solidifying the relationship between the company and its investors.
- Market Reaction: Following the dividend announcement, Nathan's Famous shares jumped 7% in pre-market trading, indicating a positive market sentiment regarding the company's future prospects, which may attract more investors to participate.
See More
Investor Rights Law Firm Investigates Multiple Companies
- SkyWater Transaction Investigation: Halper Sadeh LLC is investigating SkyWater Technology, Inc. (NASDAQ: SKYT) for its sale to IonQ at $15.00 in cash and $20.00 in IonQ common stock, potentially violating federal securities laws and fiduciary duties to shareholders.
- Nathan's Famous Sale Review: The firm is also scrutinizing Nathan’s Famous, Inc. (NASDAQ: NATH) for its sale to Smithfield Foods, Inc. at $102.00 per share in cash, which may impact shareholder rights.
- Sun Country Airlines Deal Issues: The sale of Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) to Allegiant Travel Company for 0.1557 shares of Allegiant common stock and $4.10 in cash per share is under investigation, with the firm potentially seeking increased compensation for shareholders.
- Lisata Therapeutics Transaction Focus: Lisata Therapeutics, Inc. (NASDAQ: LSTA) is being reviewed for its sale to Kuva Labs, Inc. at $4.00 per share in cash plus two non-tradeable contingent value rights, with the law firm offering legal support to shareholders.
See More
Investigations Launched into Multiple Company Acquisitions
- SkyWater Acquisition Investigation: SkyWater Technology is set to be acquired by IonQ for $35 per share, totaling approximately $1.8 billion; however, this price is below the company's 52-week high of $36.27, raising concerns about shareholder value.
- Nathan's Famous Deal Scrutiny: Nathan's Famous will be acquired by Smithfield Foods for $102 per share, representing an enterprise value of about $450 million, yet this price is below its 52-week high of $118.50, prompting questions about the board's fiduciary duties.
- Lisata Therapeutics Merger Issues: Lisata Therapeutics will be acquired by Kuva Labs for $4 per share, plus two non-tradeable rights, with investigations focusing on whether the board failed to conduct a fair process, potentially harming shareholder interests.
- Sun Country Airlines Acquisition Review: Sun Country Airlines will be acquired for 0.1557 shares of Allegiant stock and $4.10 in cash per share, implying a value of $18.89 per share, with investigations into whether the board breached its fiduciary duties to shareholders.
See More
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Investigation Background: Halper Sadeh LLC is investigating companies such as Nathan's Famous, Inc., SkyWater Technology, Inc., and Gold Resource Corporation for potential violations of federal securities laws and breaches of fiduciary duties, highlighting concerns over investor rights.
- Transaction Details: Nathan's Famous is being sold to Smithfield Foods for $102.00 per share in cash, SkyWater Technology is being sold for $15.00 in cash and $20.00 in IonQ common stock, and Gold Resource Corporation is being sold for 1.4476 shares of Goldgroup per share, with these financial structures potentially impacting shareholder interests.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, promising legal services on a contingency fee basis, aiming to secure increased consideration and additional disclosures for shareholders.
- Commitment to Legal Services: The firm represents investors globally, focusing on combating securities fraud and corporate misconduct, having successfully recovered millions for defrauded investors in the past, demonstrating its expertise in protecting investor rights.
See More
Investigation Alerts for Multiple Company Acquisitions
- Valaris Acquisition Investigation: Valaris Limited is set to be acquired by Transocean in an all-stock transaction valued at approximately $5.8 billion, with shareholders receiving 15.235 shares of Transocean stock per Valaris share, raising concerns about whether the board breached fiduciary duties by failing to ensure a fair process.
- Silicon Labs Acquisition Scrutiny: Silicon Labs will be acquired by Texas Instruments for $231.00 per share in an all-cash deal, representing a total enterprise value of about $7.5 billion, with investigations focusing on whether the board failed to conduct a fair process to ensure shareholders receive fair value.
- SkyWater Technology Acquisition Review: SkyWater Technology is being acquired by IonQ for $35.00 per share in a cash-and-stock transaction, implying a total equity value of approximately $1.8 billion, with investigations questioning whether the board breached fiduciary duties as the deal consideration is below the company's 52-week high of $36.27.
- Nathan's Famous Acquisition Investigation: Nathan's Famous will be acquired by Smithfield Foods for $102.00 per share in cash, representing an enterprise value of around $450 million, with investigations examining whether the board failed to ensure a fair process, as the deal consideration is below the company's 52-week high of $118.50.
See More
Nathan's Famous Q3 Revenue Decline Amid Acquisition News
- Revenue Growth: Nathan's Famous reported Q3 revenues of $34.31 million, an 8.9% increase from $31.52 million in the prior year, indicating a struggle to meet market expectations despite nominal growth.
- Earnings Decline: The diluted earnings per share fell to $0.75 from $1.10 a year earlier, representing a 31.8% decrease, which reflects a weakening in profitability that could dampen investor confidence.
- Acquisition Impact: Smithfield Foods announced its acquisition of Nathan's Famous for $450 million, leading to a 7% premarket jump in NATH shares, suggesting a positive market reaction and potential new opportunities for the company.
- Market Sentiment: Despite the decline in revenue and profitability, the acquisition news has buoyed market sentiment, as investors anticipate potential synergies and integration benefits that may support the stock price in the short term.
See More
Nathan's Famous Declares Quarterly Dividend of $0.50 per Share
- Quarterly Dividend Announcement: Nathan's Famous has declared a quarterly dividend of $0.50 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 1.97% reflects the company's attractiveness in the current market environment, potentially boosting shareholder confidence and enhancing its market position.
- Payment Schedule: The dividend is payable on February 27, with a record date of February 17 and an ex-dividend date also on February 17, ensuring shareholders receive timely returns and further solidifying the relationship between the company and its investors.
- Market Reaction: Following the dividend announcement, Nathan's Famous shares jumped 7% in pre-market trading, indicating a positive market sentiment regarding the company's future prospects, which may attract more investors to participate.
See More
Investor Rights Law Firm Investigates Multiple Companies
- SkyWater Transaction Investigation: Halper Sadeh LLC is investigating SkyWater Technology, Inc. (NASDAQ: SKYT) for its sale to IonQ at $15.00 in cash and $20.00 in IonQ common stock, potentially violating federal securities laws and fiduciary duties to shareholders.
- Nathan's Famous Sale Review: The firm is also scrutinizing Nathan’s Famous, Inc. (NASDAQ: NATH) for its sale to Smithfield Foods, Inc. at $102.00 per share in cash, which may impact shareholder rights.
- Sun Country Airlines Deal Issues: The sale of Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) to Allegiant Travel Company for 0.1557 shares of Allegiant common stock and $4.10 in cash per share is under investigation, with the firm potentially seeking increased compensation for shareholders.
- Lisata Therapeutics Transaction Focus: Lisata Therapeutics, Inc. (NASDAQ: LSTA) is being reviewed for its sale to Kuva Labs, Inc. at $4.00 per share in cash plus two non-tradeable contingent value rights, with the law firm offering legal support to shareholders.
See More
Investigations Launched into Multiple Company Acquisitions
- SkyWater Acquisition Investigation: SkyWater Technology is set to be acquired by IonQ for $35 per share, totaling approximately $1.8 billion; however, this price is below the company's 52-week high of $36.27, raising concerns about shareholder value.
- Nathan's Famous Deal Scrutiny: Nathan's Famous will be acquired by Smithfield Foods for $102 per share, representing an enterprise value of about $450 million, yet this price is below its 52-week high of $118.50, prompting questions about the board's fiduciary duties.
- Lisata Therapeutics Merger Issues: Lisata Therapeutics will be acquired by Kuva Labs for $4 per share, plus two non-tradeable rights, with investigations focusing on whether the board failed to conduct a fair process, potentially harming shareholder interests.
- Sun Country Airlines Acquisition Review: Sun Country Airlines will be acquired for 0.1557 shares of Allegiant stock and $4.10 in cash per share, implying a value of $18.89 per share, with investigations into whether the board breached its fiduciary duties to shareholders.
See More
