Sizzling Sale: Nathan’s Famous Hot Dogs Fetch a Whopping $450 Million

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Nathan’s Famous, the iconic hot dog brand that began as a humble 5-cent stand in Coney Island over 100 years ago, is changing hands. Smithfield Foods, a major player in the packaged meat industry, has purchased the company in a straightforward cash transaction valued at $450 million, as announced by both companies on Wednesday.

Since 2014, Smithfield has held the rights to manufacture and distribute Nathan’s products across the United States, Canada, and at Sam’s Clubs in Mexico. The latest acquisition deal involves Smithfield buying all outstanding Nathan’s shares at $102 per share.

In an era where food companies are grappling with rising costs, Nathan’s has not been immune to these challenges. The company reported a 27% increase in the cost of branded products compared to the previous year, as detailed in their recent filing with the U.S. Securities and Exchange Commission. Specifically, they noted a 20% hike in the average cost per pound of hot dogs.

The origins of Nathan’s Famous trace back to 1916 when Nathan Handwerker opened the original hot dog stand with a modest $300 loan. Over time, the company expanded beyond its New York roots, eventually leading the Handwerker family to sell the business to investors in 1987. Since then, the Nathan’s brand has continued to grow, maintaining its status as a cherished part of American culinary culture.

Nathan’s has an outsized cultural presence in the U.S. both because of its history and the famous, or infamous, hot dog-eating contest held at its flagship Coney Island shop, where contestants from around the world gather every July 4 to see who can down the most hot dogs in 10 minutes.

The restaurant sits on same lot where Handwerker opened his first hot dog stand.

American Joey Chestnut is the reigning Nathan’s hot dog-eating champion after eating 70.5 hot dogs and buns last year. Chestnut has won 17 of the last 19 events, setting a record in 2021 after wolfing down 76 hot dogs and buns.

While the first recorded hot dog-eating contest was held in 1972, Nathan’s says informal contests began the year the stand opened early in the 20th century. It says the 2025 contest was its 103rd.

Smithfield said Wednesday that the event, which has been televised on ESPN with a crowd estimated at 30,000 at Coney Island each year, will continue.

Smithfield said it expects to achieve annual savings of about $9 million within two years of closing the deal.

“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.

Nathan’s board of directors, which own or control nearly 30% of the outstanding shares of Nathan’s Famous common stock, approved the buyout and agreed to recommend to its shareholders to vote in favor of the deal.

Smithfield, which also owns the Gwaltney bacon and Armour frozen meat brands, rang up more than a billion dollars in operating profit in 2024 on sales of $14.1 billion.

Smithfield shares were unchanged in midday trading Wednesday at $23.39.

In fiscal 2025, Nathan’s reported profit of $24 million on revenue approaching $150 million. It’s acquisition is expected to close in the first half of this year.