Nathan’s Famous, the Coney Island hot dog stand that opened as a five-cent eatery in 1916, has been sold to packaged-meat giant Smithfield Foods in an all-cash $450 million deal announced Wednesday. Smithfield will purchase all outstanding shares for $102 each.
The acquisition reflects mounting inflationary pressure on the food industry. Nathan’s sales costs for branded products rose 27 percent compared with the previous year in its most recent quarter, with the average cost per pound of hot dogs rising 20 percent, according to a company filing with the U.S. Securities and Exchange Commission. The deal is expected to close in the first half of 2026.
Smithfield will pay $102 per share to acquire all outstanding Nathan’s Famous stock, cementing a relationship that began in 2014. That year, Smithfield gained rights to produce and distribute Nathan’s products in the United States and Canada and at Sam’s Club locations in Mexico. The long partnership positioned the meat producer to move from supplier to sole owner.
Nathan Handwerker opened his first stand on Coney Island in 1916 with a $300 loan. The restaurant has occupied the same lot ever since, surviving economic downturns to become an enduring American culinary institution. The Handwerker family maintained ownership until 1987, when they sold the business to outside investors.
When Partnership Becomes Acquisition
Nathan’s board of directors, which controls or owns roughly 30 percent of the company’s outstanding shares, approved the acquisition and recommended that shareholders vote in favor. In fiscal 2025, Nathan’s generated $24 million in profit on revenue approaching $150 million.
Smithfield, which also owns the Gwaltney bacon and Armour frozen-meat brands, reported more than $1 billion in operating profit in 2024 on total sales of $14.1 billion. “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,” said Nathan’s CEO Eric Gatoff.
Smithfield expects to achieve approximately $9 million in annual cost savings within two years of closing. Nathan’s disclosed that its sales costs for branded products climbed 27 percent year-over-year in its most recent quarterly filing, driven in part by a 20 percent increase in the per-pound cost of hot dogs. The acquisition is expected to close in the first half of 2026.
The July 4th Spectacle Endures
Every July 4th, Nathan’s hosts its renowned hot dog eating contest at the Coney Island location, drawing competitors from around the world. The annual spectacle draws approximately 30,000 spectators to Coney Island and reaches millions more through ESPN’s televised broadcast.
American champion Joey Chestnut claimed his most recent victory by consuming 70.5 hot dogs and buns in the 2025 contest. Chestnut has won 17 of the past 19 competitions, including a 2021 record of 76 hot dogs and buns.
Smithfield has committed that the event will continue under its ownership, ensuring the tradition persists through the transition.