Nathan's Famous is a branded food company centered on its beef hot dogs. The company operates through three segments: the Branded Product Program, product licensing, and restaurant operations. The Branded Product Program is a wholesale business where Nathan's buys hot dogs from Smithfield Foods and resells them to foodservice operators such as stadiums, movie theaters, and amusement parks. The licensing segment utilizes an asset-light model where Nathan's licenses its brand and proprietary spice recipe to Smithfield Foods for retail distribution in grocery and mass merchandise stores. Nathan's earns royalties on these retail sales, providing a high-margin revenue stream with minimal capital requirements. The restaurant segment includes company-owned locations in the New York area and a global franchise network of physical locations and virtual kitchens. Nathan's business model balances wholesale sales volume with licensing royalties, though the wholesale business is exposed to beef commodity price fluctuations. The company relies heavily on Smithfield Foods, which serves as its primary manufacturer, supplier, and licensee. In January 2026, Nathan's agreed to a merger with Smithfield Foods to become a private subsidiary. This transaction will consolidate the existing commercial relationship between the two companies and is expected to close in the second half of 2026.