Nathan’s Famous, home of the hot dog eating contest, sells for $450M
Credit: Jeremy Thompson on Flickr
Nathan’s Famous, the century-old Coney Island hot dog institution that grew from a single stand into a global brand, has been sold for $450 million. On Wednesday, Smithfield Foods said it would pay $102 per share to acquire the iconic brand. Smithfield, a Chinese-owned food processor based in Virginia, has held the rights to produce and sell Nathan’s products in the U.S. and Canada since 2014, which were scheduled to expire in 2032. For fans worried about the future of the famed Nathan’s Hot Dog Eating Contest, fear not—Smithfield said it plans to continue hosting the event, according to The Hill.
Established in 1916 by Polish immigrant Nathan Handwerker, the business began as a single hot dog stand selling franks for just a nickel. Handwerker reportedly borrowed $300 from entertainers Jimmy Durante and Eddie Cantor to launch the venture, according to the New York Post. After expanding to multiple locations, the Handwerkers sold the company to investors in 1987, and the brand has continued to grow since then.
Today, the brand’s original location still stands at the corner of Surf and Stillwell avenues, where Handwerker’s cart once operated. Nathan’s fame stems from both its deep roots in New York City and the annual Nathan’s Hot Dog Eating Contest, which since 1972 has drawn crowds to the Coney Island boardwalk each July 4 to see competitors devour as many hot dogs as possible in 10 minutes.
Smithfield said the contest will continue despite the change in ownership. Joey Chestnut, the reigning champion, ate 70-and-a-half hot dogs at last year’s event and has won 17 of the past 19 competitions. He also set a record in 2021 by consuming 76 hot dogs and buns, according to CBS News.
“We absolutely plan to continue this great American tradition that routinely draws a very large TV audience on ESPN, a crowd estimated at 30,000 and extensive media coverage around the globe,” a Smithfield spokesperson told The Post.
With the acquisition, Smithfield said the deal, slated to close in the first half of 2026, will generate $9 million in annual savings by its second year. Packaged meat is Smithfield’s largest business sector.
In an official statement, Smithfield President and CEO Shane Smith said the purchase will allow them to take the brand “to new heights.”
“The Nathan’s Famous acquisition is a meaningful step in the progression of Smithfield Foods allowing us to own all of the top brands in our Packaged Meats portfolio and unlock new growth opportunities for our largest segment,” Smith said.
He added, “Since entering into our licensing agreement in 2014, we have made significant investments to build and grow the Nathan’s Famous brand. With our manufacturing scale, marketing strength, product innovation capabilities, and retail and foodservice channel expertise, acquiring Nathan’s Famous will allow us to take the brand to new heights.”
Smithfield also owns the Gwaltney bacon and Armour frozen meat brands, generating more than $1 billion in operating profit in 2024 from $14.1 billion in sales. In fiscal year 2025, Nathan’s reported $24 million in profit on nearly $150 million in revenue, CBS News reported.
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