Note 11 - Stockholders’ Equity

6 Months Ended

Sep. 25, 2011

Stockholders' Equity Note Disclosure [Text Block]

NOTE K – STOCKHOLDERS’ EQUITY

During the period from October 2001 through September 25, 2011, Nathan’s repurchased 3,833,706 shares of its common stock at a cost of approximately $35,905,000 pursuant to its stock repurchase plans previously authorized by the Board of Directors.  During the twenty-six week period ended September 25, 2011, we repurchased 78,428 shares at a total cost of $1,459,000.

On February 1, 2011, Nathan’s Board of Directors authorized a 300,000 share increase in the number of shares that the Company may repurchase.  After giving effect to this increase, an aggregate of 466,294 shares can still be purchased under Nathan’s stock repurchase plans, as of September 25, 2011.

Purchases may be made from time to time, depending on market conditions, in open market or privately-negotiated transactions, at prices deemed appropriate by management.  There is no set time limit on the repurchases to be made under these stock repurchase plans.

On September 10, 2010, Nathan’s entered into a 10b5-1 agreement with Mutual Securities, Inc. (“MSI”) pursuant to which Nathan’s appointed MSI as its broker to  repurchase shares of the Company’s common stock commencing September 10, 2010, having a value of up to an aggregate of $4.8 million. On February 3, 2011, Nathan’s and MSI amended this agreement to increase the aggregate value to approximately $7.5 million. This agreement was subsequently amended on August 4, 2011 to extend the termination date from September 19, 2011 to November 15, 2011.  As of September 25, 2011, the Company, through MSI, had repurchased shares aggregating $3,508,000 pursuant to this 10b5-1 agreement. The agreement was adopted to ensure that the Company’s repurchases would comply with the safe harbor provided by Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

At September 25, 2011, the Company has reserved 9,151,319 shares of common stock for issuance upon exercise of rights to purchase shares of common stock pursuant to its new shareholder rights plan adopted by the Board of Directors on June 4, 2008.