Smithfield Foods has agreed to acquire Nathan’s Famous Inc. in an all-cash deal valued at approximately $450 million, with the transaction announced on Jan. 21, 2026. Under the terms, Smithfield will purchase all outstanding shares of Nathan’s Famous common stock for $102 per share.
The acquisition secures Smithfield’s rights to produce, sell, and market the Nathan’s Famous all-beef hot dog brand in perpetuity across retail and foodservice channels in the United States, Canada, and Sam’s Clubs in Mexico. Smithfield has held an exclusive license for these rights since March 2014, previously set to expire in March 2032. The deal is expected to close in the first half of 2026, subject to shareholder approval, antitrust review, Committee on Foreign Investment in the United States clearance, and other customary conditions. Smithfield plans to fund the purchase with cash on hand and anticipates annual cost savings of about $9 million within two years of closing. The transaction is described as immediately accretive to Smithfield’s adjusted diluted earnings per share.
Nathan’s Famous traces its origins to 1916, when Nathan Handwerker opened a hot dog stand on Coney Island, Brooklyn, New York, selling franks for 5 cents with a $300 loan. The business expanded over decades under the Handwerker family before its sale to investors in 1987. The brand maintains a flagship location on the original Coney Island lot and operates a franchise model with restaurants nationwide. Nathan’s Famous reported fiscal 2025 profit of $24 million on revenue approaching $150 million.
The company faces inflationary pressures common in the food sector. In its most recent quarter, sales costs for branded products increased 27% year-over-year, including a 20% rise in the average cost per pound of hot dogs, according to a U.S. Securities and Exchange Commission filing.
Nathan’s Famous holds significant cultural status in American food history, largely due to its annual July 4 hot dog-eating contest at the Coney Island flagship. The event, televised on ESPN with crowds estimated at 30,000, features competitors attempting to consume the most hot dogs and buns in 10 minutes. Informal contests date to the stand’s early years, with the first recorded event in 1972; the company describes the 2025 contest as its 103rd. American Joey Chestnut holds the record with 76 hot dogs and buns in 2021 and won 17 of the last 19 events, including 70.5 in the most recent contest. Smithfield confirmed the contest will continue under new ownership.
Smithfield Foods, based in Smithfield, Virginia, is a major player in packaged meats and fresh pork, owning brands such as Gwaltney bacon and Armour frozen meats. The company reported more than $1 billion in operating profit on $14.1 billion in sales for 2024. Smithfield shares traded unchanged at $23.39 midday on the announcement date.
Nathan’s CEO Eric Gatoff stated, “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.” Nathan’s board, which owns or controls nearly 30% of outstanding shares, approved the deal and recommended shareholder approval.
The deal reflects consolidation in the packaged meats industry amid rising costs and brand value preservation.