"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's has an outsized cultural presence in the U.S. both because of its history and the famous, or infamous, hot dog-eating contest held at its flagship Coney Island shop, where contestants from around the world gather every July 4 to see who can down the most hot dogs in 10 minutes. The restaurant sits on same lot where Handwerker opened his first hot dog stand."
"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."
Smithfield Foods acquired Nathan's Famous in an all-cash $450 million deal, paying $102 per outstanding share. Smithfield had 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 pressure, with branded product sales costs rising 27% year-over-year in the most recent quarter and a 20% increase in the average cost per pound of hot dogs. Nathan Handwerker opened the first stand on Coney Island in 1916 with a $300 loan; the Handwerker family sold the business in 1987 and the franchise expanded. The brand retains strong cultural prominence through its annual July 4 Coney Island hot-dog eating contest, a televised event that draws large crowds and international competitors; Joey Chestnut is the reigning champion.
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