Iconic hot dog maker Nathan’s Famous sells for $450 million in all-cash deal

Following the announcement, Nathan's shares surged by nearly 9% in midday trading

Nathan’s Famous, the iconic hot dog brand that began as a 5-cent stand in Coney Island over a century ago, has been acquired by packaged meat giant Smithfield Foods in a $450 million all-cash deal. The companies announced the transaction on Wednesday.

Smithfield, which has held the rights to produce and sell Nathan’s products across the U.S., Canada, and at Sam's Clubs in Mexico since 2014, will purchase all of Nathan's outstanding shares for $102 each. The acquisition is anticipated to conclude in the first half of 2026.

Following the announcement, Nathan's shares surged by nearly 9% in midday trading, reaching $100.81 a share. Meanwhile, Smithfield shares were unchanged in midday trading on Wednesday at $23.39.

Smithfield anticipates achieving annual savings of approximately $9 million within two years of finalising the deal. Eric Gatoff, Nathan's CEO, praised the long-standing partnership, stating: "As a long-time partner, Smithfield has demonstrated an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards."

Following the announcement, Nathan's shares surged by nearly 9% in midday trading (Brittainy Newman)

Nathan's board of directors, which collectively own or control nearly 30% of the company’s common stock, has approved the buyout and intends to recommend that shareholders vote in favour of the agreement.

Smithfield, which also owns brands such as Gwaltney bacon and Armour frozen meats, reported over $1 billion in operating profit in 2024 on sales of $14.1 billion, and is on track to surpass these figures. In its fiscal year 2025, Nathan’s reported a profit of $24 million on revenue approaching $150 million.