HIGHOutside partyCustomer
Smithfield Foods
“10-K Item 1A: 'licensing revenue and overall profitability is substantially dependent on our agreement with Smithfield Foods'”
NATH · Concentration risk · 10-K extracted
Nathan's Famous (NATH) concentration risks
Updated
The most significant concentration Nathan's Famous discloses is Smithfield Foods, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Source: Nathan's Famous’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
At a glance
Disclosed-size breakdown · 1 disclosed concentration
HIGH1
MEDIUM0
LOW0
Disclosed concentrations
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
TrendMatrix Research · concentration synthesis
What these concentrations mean together
updated 2026-07-06Nathan's Famous carries a concentrated and consequential dependency: the company's licensing revenue and overall profitability are substantially dependent on its agreement with Smithfield Foods, a high-size dependency exposure. Unlike a structural concentration tied to a broad market or geography, this is a single-counterparty risk — the terms, renewal, and continued performance of this one licensing relationship materially drive the company's results. Because this is the only concentration claim disclosed in the reviewed sources, it stands as the dominant risk factor for the name: any disruption to the Smithfield relationship, whether through contract renegotiation, a change in Smithfield's own business, or a dispute between the parties, would flow directly through to Nathan's Famous' profitability given how central this single agreement is described to be. This is an idiosyncratic, counterparty-specific risk rather than a macro-cyclical one, meaning it would take an event specific to this relationship — not a broader industry or economic shift — to move the thesis. Investors should weight the durability and terms of this one licensing agreement heavily in any assessment of the stock.
For the engine’s reasoning on NATH’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
Industry peers · Restaurants
Peer concentration profile
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| BJRI | BJ's Restaurants, Inc. | 1 | 1 | 0 | 2 |
| BLMN | Bloomin' Brands, Inc. | 1 | 0 | 0 | 1 |
| NATH● | Nathan's Famous, Inc. | 1 | 0 | 0 | 1 |
| BH | Biglari Holdings Inc. | 0 | 1 | 0 | 1 |
| BH-A | Biglari Holdings Inc. | 0 | 1 | 0 | 1 |
| BROS | Dutch Bros Inc. | 0 | 1 | 0 | 1 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.