Nathan's FamousNATH -0.08%76 Gross Margin % is 26.78% as of Mar. 2026, which is 32% below its 10-year median of 39.30. GuruFocus rates NATH with a GF Score™ of 76/100 and a GF Value™ of $96.84 (Fairly Valued). The stock has 4 warning signs investors should review. Among 359 Restaurants companies, Nathan's Famous ranks worse than 73.26% on this metric.
Nathan's Famous Inc gross margin has been in long-term decline. The average rate of decline per year is -8.1%.
The historical rank and industry rank for Nathan's Famous's Gross Margin % or its related term are showing as below:
NATH'
s Gross Margin % Range Over the Past 10 Years
Min: 30.19 Med: 39.3 Max: 51.08
Current: 30.19
During the past 13 years, the highestGross Margin % of Nathan's Famous was 51.08%. The lowest was 30.19%. And the median was 39.30%.
NATH's Gross Margin % is ranked worse than 73.26% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs NATH: 30.19
Nathan's Famous had a gross margin of 26.78% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Nathan's Famous was -8.10% per year.
Nathan's Famous (NAS:NATH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Nathan's Famous had a gross margin of 26.78% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Nathan's Famous Gross Margin % Related Terms
Nathan's Famous Gross Margin % Historical Data
* Premium members only.
The historical data trend for Nathan's Famous's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NATH vs DIN, LOCO, PTLO: Gross Margin % Comparison
For the Restaurants subindustry, Nathan's Famous's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nathan's Famous Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Nathan's Famous's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nathan's Famous's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Nathan's Famous (NATH) has a Gross Margin % of 26.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Nathan's Famous and its competitors. This is 32% below median its historical median of 39.30. Over the past decade, Nathan's Famous' Gross Margin % has ranged from 30.19 to 51.08. According to the industry distribution chart, Nathan's Famous ranks #263 out of 359 companies in the Restaurants industry, placing it in the top 73.3%.
Is Nathan's Famous' Gross Margin % too high?
Nathan's Famous' current Gross Margin % of 26.78% is 32% below median its 10-year median of 39.30. Over the past 10 years, this metric has ranged from a low of 30.19 to a high of 51.08. The Restaurants industry median Gross Margin % is 45.71. Nathan's Famous' value of 26.78% is 41.4% below this industry median. Based on the distribution chart, Nathan's Famous ranks #263 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, Nathan's Famous has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nathan's Famous' Gross Margin % compare to DIN and LOCO?
According to the Restaurants industry distribution chart, Nathan's Famous ranks #263 out of 359 companies for Gross Margin %. This places Nathan's Famous in the lower half of its industry. The industry median Gross Margin % is 45.71. Nathan's Famous' value of 26.78% is 41.4% below this benchmark. Historically, Nathan's Famous' own Gross Margin % has ranged from 30.19 to 51.08 over the past decade. While the company's 10-year median is 39.30 vs. the industry median of 45.71, Nathan's Famous has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nathan's Famous's current Gross Margin % of 26.78% is 41.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Nathan's Famous and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nathan's Famous's current Gross Margin % is 26.78%, which is 32% below median its own 10-year median of 39.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nathan's Famous stock overvalued right now?
Based on GuruFocus' analysis, Nathan's Famous (NATH) is currently considered Fairly Valued. The stock's GF Value™ is $96.84, compared to a current price of $100.79 — trading 4.1% above its estimated fair value. The current Gross Margin % is 26.78%, which is 32% below median its 10-year median of 39.30 and 41.4% below the Restaurants industry median of 45.71. Nathan's Famous' overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Nathan's Famous (NATH), the current Gross Margin % is 26.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nathan's Famous (NATH) Overvalued in 2026?
Based on GuruFocus' analysis, Nathan's Famous stock appears to be overvalued.
The current stock price of $100.79 is trading 4.1% above its estimated GF Value™ of $96.84.
GuruFocus considers Nathan's Famous to be Fairly Valued.
Key valuation signals for NATH:
Gross Margin %: 26.78% (32% below median its 10-year median of 39.30)
GF Value™: $96.84 vs. price of $100.79 (4.1% above fair value)
Industry Position: 41.4% below the Restaurants median (#263 of 359)
No single metric tells the full story. See the NATH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nathan's Famous Inc is a branded licensor, wholesaler and retailer of products marketed under its brand. Its products are currently marketed for sale in thousands of locations, including supermarkets, mass merchandisers and club stores, selected foodservice locations and its company-owned and franchised restaurants throughout the United States and in twenty foreign countries. It considers itself to be in the foodservice industry. It has three segments Branded Product Program, Product Licensing, Restaurant Operations, of which majority of revenue is from Branded Product Program which derives from the sale of hot dog products either directly to foodservice operators or to various foodservice distributors. It generates majority of revenue from United States.
76GF Score
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