Highlights of Nathan’s Famous’ Item 19 Financial Performance Representations (2012 FDD) – Part 2

Food, Paper, and Direct Labor Costs as a Percentage of Sales at Company-Owned Restaurants

The section below describes the average cost, expressed as a percentage of gross sales, of food, paper, and direct labor (including management and crew) at the franchisor’s four company-owned Nathan’s Famous restaurants that were operated for the company’s entire fiscal year that ended March 25, 2012.

This section does not include other expenses that all franchisees will incur, such as debt service, income taxes, depreciation and amortization, franchisee-specific expenses such as royalties, investors draws and distributions, and others

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