Nathan’s Famous shareholders elect directors, ratify auditors By Investing.com

Nathan’s Famous, Inc. (NASDAQ:NATH), a renowned retail eating establishment, conducted its annual stockholders meeting on Monday, where shareholders voted on key company matters. The meeting resulted in the election of ten directors and the ratification of the company’s auditors for the upcoming fiscal year.

In the election for the board of directors, a majority of shareholders cast their votes in favor of the nominated individuals. The votes were distributed with some directors receiving notably higher support than others.

For instance, Joanne Podell received a strong endorsement with 2,590,070 votes in favor, compared to Howard M. Lorber, who saw 1,799,639 votes for his election and 802,871 withheld.

The second proposal put forth was to ratify Marcum LLP as the auditors for Nathan’s Famous for the fiscal year 2025. This motion was approved with a decisive majority of 3,002,342 votes for, 5,766 against, and 16,313 abstentions.

The results of the voting reflect shareholder confidence in the current board and their choice of auditors to oversee the company’s financial practices in the coming year. The newly elected board of directors is expected to guide Nathan’s Famous as it continues its operations and growth initiatives.

The company’s headquarters are located at One Jericho Plaza, Jericho, New York, and it operates under the jurisdiction of Delaware. Nathan’s Famous has been publicly traded and listed on The , where its performance can be tracked under the ticker symbol NATH.

This latest development is an essential aspect of Nathan’s Famous’ corporate governance, ensuring that the company adheres to its shareholders’ interests and maintains transparency in its financial reporting.

In other recent news, Nathan’s Famous, Inc. has secured a new credit agreement, providing a $70 million credit facility. This facility comprises a $60 million term loan and a $10 million revolving credit line, with an option for a further $10 million increase subject to lenders’ approval.

The credit facility, secured with Citibank, matured on July 10, 2029, and was used to refinance the company’s existing 6.625% Secured Notes due in 2025. The refinancing action released Nathan’s Famous and its guarantors from obligations under the 2017 indenture, including collateral securing the existing notes.

The term loan will be repaid in quarterly installments starting September 30, 2024, with interest rates options tied to the base rate plus an applicable rate or Term SOFR plus an applicable rate.

Under the new agreement, Nathan’s Famous is bound by financial covenants which require maintaining a Consolidated Fixed Charge Coverage Ratio not exceeding 1.20 to 1.00 and a Consolidated Net Leverage Ratio not exceeding 3.00 to 1.00, effective from the fiscal quarter ending September 29, 2024.

The credit facility’s covenants impose restrictions on the company’s ability to incur additional indebtedness, liens, asset sales or acquisitions, business changes, related-party transactions, certain investments, and restricted payments.

InvestingPro Insights

As Nathan’s Famous, Inc. (NASDAQ:NATH) reinforces its corporate governance with the latest shareholder meeting outcomes, investors may find the following InvestingPro Insights valuable for a deeper financial perspective. With a market capitalization of $313.17 million, the company is trading at a P/E ratio of 14.55, which is closely aligned with its adjusted P/E ratio over the last twelve months as of Q1 2025, standing at 14.48. This valuation metric can be particularly insightful considering Nathan’s Famous is trading near its 52-week high, with its price representing 96.14% of this peak.

Moreover, the company’s commitment to returning value to shareholders is evident as it has maintained dividend payments for eight consecutive years, boasting a dividend yield of 2.59%. This dedication to consistent dividends is complemented by the company’s sound financial position, where its liquid assets surpass short-term obligations, and it operates with a moderate level of debt. These factors, along with a revenue growth of 6.27% over the last twelve months as of Q1 2025, paint a picture of a company with a stable financial base and a prudent approach to growth and shareholder returns.

For investors seeking further guidance, there are additional InvestingPro Tips available that can provide a more comprehensive analysis of Nathan’s Famous, Inc. These can be accessed through the InvestingPro platform, offering a deeper dive into the company’s financial health and investment potential.

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