Note 11 – Stockholders’ Equity

3 Months Ended

Jun. 26, 2011

Stockholders' Equity Note Disclosure [Text Block]

NOTE K – STOCKHOLDERS’ EQUITY

During the period from October 2001 through June 26, 2011, Nathan’s purchased a total of 3,786,847 shares of its common stock at a cost of approximately $35,019,000 pursuant to its stock repurchase plans previously authorized by the Board of Directors.  During the thirteen-week period ended June 26, 2011, we repurchased 31,569 shares at a total cost of $573,000.

On February 1, 2011, Nathan’s Board of Directors authorized a 300,000 share increase in the number of shares that the Company may repurchase.  After giving effect to this increase, an aggregate of 513,153 shares can still be purchased under Nathan’s stock buy-back programs, as of June 26, 2011.

Purchases may be made from time to time, depending on market conditions, in open market or privately-negotiated transactions, at prices deemed appropriate by management.  There is no set time limit on the repurchases to be made under these stock-repurchase plans.

On September 10, 2010, Nathan’s entered into a 10b5-1 agreement with Mutual Securities, Inc. (“MSI”)pursuant to which MSI commencing September 10, 2010 could purchase shares of the Company’s common stock, having a value of up to an aggregate $4.8 million. On February 3, 2011, Nathan’s and MSI amended this agreement to increase the aggregate value to approximately $7.5 million.  This agreement was subsequently amended on August 4, 2011 to extend the termination date from September 19, 2011 to November 15, 2011.  As of June 26, 2011, the Company had repurchased shares aggregating $2,780,000 pursuant to this 10b5-1 agreement. The agreement was adopted to ensure that the Company’s repurchases would comply with the safe harbor provided by Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

At June 26, 2011, the Company has reserved 9,473,747 shares of common stock for issuance upon exercise of the Common Stock Purchase Rights approved by the Board of Directors on June 4, 2008.