For New Yorkers who visit the Coney Island Boardwalk every summer, there’s one place they almost always stop after hours of walking and amusement park rides under the hot sun.
The place is nothing fancy, just a simple red-and-yellow storefront with green and white striped awnings and a huge white-and-green sign, but the smell of sizzling hot dogs is enough to attract millions of families, making it an unmissable tradition for many.
Founded in 1916, few could have predicted that what began as a small hot dog stand in Coney Island would become a global brand, famous for its kosher beef hot dogs and for hosting the first major hot dog eating contest, now an annual July 4th spectacle. Today, the company sells its products in thousands of stores and operates hundreds of restaurants worldwide.
After more than a century of success and becoming a New York icon, the company is now taking a major step that could reshape its future for years to come.
Smithfield Foods has agreed to acquire Nathan’s Famous ( NATH ) for about $102 per outstanding share in cash, valuing the deal at about $450 million, according to a news release.
Since March 2014, Smithfield has held an exclusive license to manufacture, distribute, market and sell Nathan’s Famous products in the US, Canada and Sam’s Club locations in Mexico.
Although that license was set to expire in March 2032, closing this acquisition would allow Smithfield to secure full ownership of the Nathan’s Famous brand and continue expansion in both the retail and grocery channels.
“Since we entered into our license agreement in 2014, we have made significant investments to build and grow the Nathan’s Famous brand,” Smithfield President and CEO Shane Smith said in the press release. “With our manufacturing scale, marketing strength, product innovation capabilities and expertise in the retail and foodservice channels, the acquisition of Nathan’s Famous will allow us to take the brand to new heights.”
Famous Nathan’s CEO Eric Gatoff agrees with those sentiments, calling the Smithfield acquisition a “natural fit” for the brand’s next phase of growth.
“As a long-standing partner, Smithfield has demonstrated an outstanding commitment to invest in and develop our brand while maintaining the highest standards of quality and customer service,” added Gatoff.
Smithfield Foods (SFD) is an American food company and the largest pork producer and food processing company in the world, reporting annual sales of more than $14 billion, according to its website.
Nathan’s Famous is selling its entire business to Smithfield Foods.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Nathan’s Famous is selling its entire business to Smithfield Foods.Shutterstock ·Shutterstock
Major manufacturers such as Smithfield are looking to acquire long-standing brands with strong consumer loyalty and pricing power, especially as rising costs and competition from lower-priced private label products squeeze margins in the food industry. For Smithfield, Nathan’s Famous provides all of these goods.
“Companies make acquisitions because doing so stimulates innovation, increases their chances of success and reduces their chances of failure,” Morgan & Westfield chairman Jacob Orosz said in a study. “Big companies have high failure rates. They have too many resources. The losses are huge when an innovation at a big company fails. By acquiring other companies, big companies reduce their chances of failure in the long run.”
Many of Smithfield’s brands already compete in similar categories to Nathan’s Famous. By acquiring the entire brand, Smithfield strengthens its position in the sector while ensuring it captures a greater share of consumer spending, regardless of changing preferences and choices.
“The more brands a company owns, the more likely consumers will choose to buy them,” said industry analysts at Brandstock.
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However, this business is also mutually beneficial.
For Nathan’s Famous, the acquisition provides immediate access to Smithfield’s massive distribution network, allowing for faster expansion, broader reach and the potential to increase market share. It is also expected to help streamline supply chains and reduce production costs.
“One of the most attractive aspects of M&A is the potential for cost synergies,” said industry experts at Sun Acquisitions. “These synergies may result from consolidating locations, streamlining supply chains or utilizing more favorable terms with suppliers due to increased order volumes.”
Despite being in business for nearly 110 years, Nathan’s Famous has remained resilient through economic uncertainty thanks to its loyal customers and smart business strategy, even as many competitors in the food industry struggle with rising costs and changing consumer habits.
Nathan’s Famous ended fiscal 2025 with 234 restaurants worldwide, including 162 in the U.S. in 17 states, and operates 143 virtual kitchens worldwide, according to its SEC filing.
The company’s revenue increased 7% year-over-year to $148.2 million, while net income increased 22.5% and EBITDA increased 11.4%.
By the second anniversary of the transaction, Smithfield expects to generate approximately $9 million in annual cost savings driven by supply chain efficiencies and scale.
Famous Nathan’s board of directors has already approved the merger agreement and agreed to recommend it to shareholders. The transaction is expected to close in the first half of 2026, pending the approval of a majority of outstanding ordinary shareholders.
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This story was originally published by TheStreet on January 24, 2026, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.
