Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Nathan's Famous's 3-Year RORE % for the quarter that ended in Mar. 2026 was 0.42%.
The industry rank for Nathan's Famous's 3-Year RORE % or its related term are showing as below:
NATH's 3-Year RORE % is ranked worse than 56.88% of 327
companies
in the Restaurants industry
Industry Median: 8.92
vs NATH: 0.42
Nathan's Famous (NAS:NATH) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Nathan's Famous 3-Year RORE % Related Terms
Nathan's Famous 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Nathan's Famous's 3-Year RORE % 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.
For the Restaurants subindustry, Nathan's Famous's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Nathan's Famous's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Nathan's Famous's 3-Year RORE % 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.
In the calculation of 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Nathan's Famous (NATH) has a 3-Year RORE % of 0.42 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Nathan's Famous and its competitors. According to the industry distribution chart, Nathan's Famous ranks #186 out of 327 companies in the Restaurants industry, placing it in the top 56.9%.
Is Nathan's Famous' 3-Year RORE % too high?
Nathan's Famous' current 3-Year RORE % is 0.42. The Restaurants industry median 3-Year RORE % is 8.92. Nathan's Famous' value of 0.42 is 95.3% below this industry median. Based on the distribution chart, Nathan's Famous ranks #186 out of 327 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' 3-Year RORE % compare to DIN and PTLO?
According to the Restaurants industry distribution chart, Nathan's Famous ranks #186 out of 327 companies for 3-Year RORE %. This places Nathan's Famous in the lower half of its industry. The industry median 3-Year RORE % is 8.92. Nathan's Famous' value of 0.42 is 95.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Restaurants company?
The median 3-Year RORE % among Restaurants companies is 8.92, based on 327 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nathan's Famous's current 3-Year RORE % of 0.42 is 95.3% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Nathan's Famous and its competitors. For the Restaurants industry, the median 3-Year RORE % is 8.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nathan's Famous's current 3-Year RORE % is 0.42. 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 $97.07, compared to a current price of $101.44 — trading 4.5% above its estimated fair value. The current 3-Year RORE % is 0.42 and 95.3% below the Restaurants industry median of 8.92. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Nathan's Famous (NATH), the current 3-Year RORE % is 0.42 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 $101.44 is trading 4.5% above its estimated GF Value™ of $97.07.
GuruFocus considers Nathan's Famous to be Fairly Valued.
Key valuation signals for NATH:
3-Year RORE %: 0.42
GF Value™: $97.07 vs. price of $101.44 (4.5% above fair value)
Industry Position: 95.3% below the Restaurants median (#186 of 327)
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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