Why Nathan's Famous Looks Tasty in 2013

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hot dog specialist Nathan's Famous has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Nathan's Famous and see what CAPS investors are saying about the stock right now.

Nathan's Famous facts

Headquarters (Founded)

Jericho, N.Y. (1916)

Market Cap

$166.4 million

Industry

Restaurants

Trailing-12-Month Revenue

$70.3 million

Management

CEO Eric Gatoff (since 2007)
President/COO Wayne Norbitz (1989)

Return on Equity (Average, Past 3 Years)

12.4%

Cash/Debt

$24.9 million / $0

Competitors

Galardi Group
McDonald's

Yum! Brands


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 141 members who have rated Nathan's Famous believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TMFDeej, followed the lead of renowned value investor Mario Gabelli and planted an outperform call on the stock:

Gabelli likes how Nathan's has reduced its share count by 2 million shares to 4.2 million. He thinks that the stock does not currently reflect a solid deal that [Nathan's Famous] made with [Smithfield Foods] to market its products starting in 2014, making the stock appear more expensive that it will ultimately be. Again, this idea is interesting and sort of a special situation in that there seems to be a coming revenue stream that is not showing up in the company's numbers yet.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Nathan's Famous may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article Why Nathan's Famous Looks Tasty in 2013 originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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