Iconic Coney Island hot dog hawker Nathan's Famous is sold for $450 million

"Nathan's Famous, which opened as a 5-cent hot dog stand in Coney Island more than a century ago, has been sold to packaged meat giant Smithfield Foods in an all-cash $450 million deal, the companies announced Wednesday. Smithfield, which has held rights to produce and sell Nathan's products in the U.S. and Canada and at Sam's Clubs in Mexico since 2014, will acquire all of Nathan's outstanding shares for $102 each."

"Nathan Handwerker opened the first Nathan's hot dog stand on Coney Island in 1916 with a $300 loan, according to the company. Like almost every food company, Nathan's has been under significant inflationary pressure. Nathan's sales costs of branded products rose 27% compared with last year in its most recent quarter, the company said in a filing with the U.S. Securities and Exchange Commission. There was a 20% increase in the average cost per pound of hot dogs, it said."

Nathan's Famous, founded by Nathan Handwerker in 1916 as a 5-cent hot dog stand on Coney Island, will be acquired by Smithfield Foods for $450 million in an all-cash transaction at $102 per share. Smithfield previously held rights to produce and sell Nathan's products in the U.S. and Canada and at Sam's Clubs in Mexico since 2014. Nathan's faced significant inflationary pressures, with branded-product sales costs up 27% year-over-year and average hot dog costs per pound rising 20% in its most recent quarter. Nathan's maintains cultural prominence through its Coney Island flagship and its annual Fourth of July hot-dog-eating contest, which occurs on the original stand's lot.

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