Nathan's Famous Inc. Sees Increased Profits, Miami Part of The Reason
They sold it back in 2007 for $850,000 cash and "a secured promissory note for $2.4 million, payable over four years," according to Nation's Restaurant News.
"We felt that Miami Subs was of no real importance to us compared to the Nathan's Famous brand," said the company president.
This year, a report released June 10th cites an additional $250,000 gain from the sale of Miami Subs "which was previously deemed contingent and not realized" .
I've put in several calls and an email to Nathan's Famous President Wayne Norbitz to find out what the hell that means, not because it's shady, but because I'm a fiscal dumbass. Company representative C. Grimes has assured me that Norbitz has been made aware of my request and that someone will get back to me. I will update this blog post when that happens.
Point is "these results represent Nathan's sixth consecutive year of increased revenues and profits from continuing operations" and Miami's part of the reason.
UPDATE: Just got a call back from a Nathan's CEO. Here's the deal. The $250,000 were a discount that would have been given to Miami Subs Corporation had they paid off the promissory in one year. Being that they did not avail themselves of the terms of the negotiated discount the $250,000 came out of Miami Subs Corporation's pockets and went into Nathan's coffers.
The CEO (who asked that his name be kept secret) adds "The time that we owned Miami Subs was the time our Nathan's brand exploded. It's not that Miami Subs was not a great company or a great brand, it's just that all our resources were going into Nathan's Famous."
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