What is Nathan's Famous, Inc.'s Shariah compliance score?

Nathan's Famous, Inc. (NATH) has a Shariah compliance score of 73/100 (Grade: B+, Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Nathan's Famous, Inc. pass AAOIFI screening?

Nathan's Famous, Inc. (NATH) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (NATH: 12.1%), (3) interest-bearing deposits below 30% (NATH: 6.7%), and (4) prohibited income below 5% (NATH: 0.3%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Nathan's Famous, Inc. stock?

Nathan's Famous, Inc. (NATH) has a non-permissible income ratio of 0.32%. Muslim investors should purify this percentage of any dividends received and capital gains realized from NATH shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Nathan's Famous, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Nathan's Famous, Inc. (NATH) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about NATH's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is Nathan's Famous, Inc. (NATH) halal? Halal. Based on AAOIFI screening, Nathan's Famous, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 73/100 (Grade: B+).

NATH: Is Nathan's Famous, Inc. Halal?

Halal

Nathan's Famous, Inc.

NASDAQConsumer CyclicalUS

$102.29

+0.44%

AvoidBorderlineClean

Purify ~2.3% of income

About Nathan's Famous, Inc.

Nathan's Famous, Inc. (NATH) operates primarily within the foodservice sector, encompassing both direct operations and an extensive licensing model. The company manages and licenses out restaurant locations operating under the iconic Nathan's Famous banner, while also distributing a wide array of products featuring their well-known trademarks across numerous retail and commercial outlets. A significant portion of their business revolves around licensing agreements. These arrangements empower other entities to manufacture, market, and sell Nathan's Famous branded goods. This includes refrigerated consumer packages of items like hot dogs, sausages, and corned beef, along with other prepared meat products, all destined for resale through major retail channels such as supermarkets, grocery stores, mass merchandisers, and club stores. Further expanding its reach, Nathan's Famous also grants licenses for: the bulk production of hot dogs and sausages specifically for the broader foodservice industry; the supply of their signature natural casing and skinless hot dogs in bulk for use within their own restaurant network; the creation of proprietary spice blends; and the manufacturing and distribution of complementary items like sauerkraut, pickles, French fries, and onion rings for retail. Moreover, licenses extend to a range of frozen appetizers such as miniature bagel dogs, franks-in-a-blanket, mozzarella sticks, and various other hors d'oeuvres, which are distributed via club stores, supermarkets, and a host of other food retailers. Beyond licensing, the company directly supplies its Nathan's brand items to foodservice operators and distributors. Additionally, it offers fish fillets under the Arthur Treacher's brand. As of March 27, 2022, the company's restaurant footprint included four establishments directly owned and operated within the New York City metropolitan area, alongside 239 franchised locations spanning 18 U.S. states and 12 international territories. Established in 1916, Nathan's Famous, Inc. maintains its headquarters in Jericho, New York.

Sector: Consumer Cyclical · Industry: Restaurants

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 16, 2026

B+

Good

Good compliance with minor concerns

73Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)

2.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

•Restaurants: estimated 2.0% peripheral exposure (AAOIFI industry average)

Use the Purification Calculator to compute exactly how much of your dividend income to donate.

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap12.1% / 30.0%

Compliance History

Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 16, 2026Fiscal: FY 2026Source: EDGAR

Purify Your NATH Dividends

0.3% non-compliant income

NATH has 0.3% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

418.8M

Price

$102.29

Sector

Consumer Cyclical

Industry

Restaurants

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Frequently Asked Questions

Is Nathan's Famous, Inc. (NATH) halal to invest in?

Based on AAOIFI Standard 21 screening, Nathan's Famous, Inc. (NATH) is rated Halal with a compliance grade of B+ (Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Nathan's Famous, Inc. get a B+ compliance rating?

Nathan's Famous, Inc. (NATH) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 12.1% (limit 30%); interest-bearing deposits of 6.7% (limit 30%); prohibited income of 0.32% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Nathan's Famous, Inc.'s Shariah verdict?

Nathan's Famous, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Nathan's Famous, Inc. re-screened for Shariah compliance?

Nathan's Famous, Inc. (NATH) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 16, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.