Nathan's Famous Under Investigation Amid Smithfield Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 Jan 26
Source: CORRESP
Nathan's Famous Inc. shares rose by 8.74% as the stock crossed above its 5-day SMA, reflecting positive market sentiment following the acquisition announcement by Smithfield Foods.
However, the acquisition, valued at approximately $450 million with a cash offer of $102 per share, is under investigation by Halper Sadeh LLC for potential fiduciary breaches by Nathan's board. The investigation raises concerns about whether the board acted in the best interests of shareholders, potentially impacting shareholder confidence and the overall perception of the deal.
This scrutiny could lead to legal challenges and affect Nathan's stock performance in the long term, despite the immediate positive market reaction to the acquisition news.
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.
