Nathan’s Famous, the Coney Island hot dog business known for its July 4 eating contest, is being acquired by Smithfield Foods for $450 million in an all-cash deal, the companies announced Wednesday. Smithfield will buy all of Nathan’s outstanding shares for $102 each.
Smithfield has held rights to produce and sell Nathan’s products in the U.S. and Canada since 2014, and at Sam’s Clubs in Mexico since 2014, the announcement said. Like other packaged-food companies, Nathan’s said it has faced inflationary pressure on costs.
In its most recent quarter, Nathan’s reported that sales costs of branded products rose 27% compared with last year. The company also said there was a 20% increase in the average cost per pound of hot dogs, according to the filing it made with the U.S. Securities and Exchange Commission.
Nathan’s traces its origins to Nathan Handwerker, who opened the first Nathan’s hot dog stand on Coney Island in 1916 using a $300 loan, according to the company. After expanding to other locations around New York, the Handwerker family sold the business to investors in 1987, and the franchise later continued to grow.
The restaurant sits on the same lot where Handwerker opened the first stand. Nathan’s said its contest attracts competitors from around the world each July 4 at its flagship Coney Island shop, and it said the 2025 contest was its 103rd.
The eating contest’s current champion is American Joey Chestnut, who was the reigning champion after eating 70.5 hot dogs and buns last year, the companies said. They also cited Chestnut’s record over recent events, including winning 17 of the last 19 events and setting a record in 2021 by eating 76 hot dogs and buns.
Smithfield said the event will continue after the acquisition. It said the contest has been televised on ESPN, with a crowd estimated at 30,000 at Coney Island each year.
Nathan’s CEO Eric Gatoff said Smithfield has shown “an outstanding commitment to investing in and growing our brand while maintaining the utmost quality and customer service standards,” according to the company. Nathan’s board of directors, which owns or controls nearly 30% of the outstanding shares of Nathan’s Famous common stock, approved the buyout and agreed to recommend that shareholders vote in favor of the deal.
Smithfield also owns the Gwaltney bacon and Armour frozen meat brands. The company said Smithfield rang up more than a billion dollars in operating profit in 2024 on sales of $14.1 billion, and its shares were unchanged in midday trading Wednesday at $23.39.
For fiscal 2025, Nathan’s reported profit of $24 million on revenue approaching $150 million, the announcement said. The acquisition is expected to close in the first half of this year.