Note O - Stockholders' Equity

3 Months Ended

Jun. 26, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE O – STOCKHOLDERS’ EQUITY

1. Dividends

Effective June 10, 2022, the Company's Board of Directors (the "Board") declared its first quarterly cash dividend of $0.45 per share for fiscal 2023, which was paid on June 24, 2022 to stockholders of record as of the close of business on June 20, 2022.

Effective August 5, 2022, the Board declared its second quarterly cash dividend of $0.45 per share for fiscal 2023 payable on September 2, 2022 to stockholders of record as of the close of business on August 22, 2022.

Our ability to pay future dividends is limited by the terms of the Indenture with U.S. Bank National Association, as trustee and collateral trustee. In addition to the terms of the Indenture, the declaration and payment of any cash dividends in the future are subject to final determination of the Board and will be dependent upon our earnings and financial requirements.

2. Stock Repurchase Programs

In 2016, the Board authorized increases to the sixth stock repurchase plan for the purchase of up to 1,200,000 shares of its common stock on behalf of the Company. As of June 26, 2022, Nathan’s had repurchased 1,086,820 shares at a cost of $38,178 under the sixth stock repurchase plan. At June 26, 2022 there were 113,180 shares remaining to be repurchased pursuant to the sixth stock repurchase plan. The plan does not have a set expiration date. Purchases under the Company’s stock repurchase program 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.

On June 14, 2022, the Board approved a 10b5-1 Plan (the “10b5-1 Plan”) which will expire on the earlier of (a) September 13, 2022 or (b) the earlier of when the aggregate purchases under the 10b5-1 Plan equals 50,000 shares unless terminated earlier by the Board.

During the thirteen week period ended June 26, 2022, the Company repurchased in open market transactions 20,370 shares of the Company’s common stock at an average share price of $52.49 for a total cost of $1,070 under the 10b5-1 Plan.

Through July 29, 2022, the Company repurchased an additional 13,896 shares of the Company’s common stock at an average share price of $54.51 for a total cost of $758. At July 29, 2022, 15,734 shares were available to repurchase under the 10b5-1 Plan.