Smithfield Foods to acquire Nathan’s Famous hot dogs in $450 million deal

NEW YORK — Smithfield Foods has reached a deal to acquire Nathan’s Famous for $450 million in cash, the companies announced.

The meatpacking giant will pay $102 per share for the iconic brand, which began as a 5-cent hot dog stand on Coney Island more than a century ago.

The transaction was driven in part by significant inflationary pressures facing Nathan’s. The company reported that its cost of sales rose 27% over the past year, while the average cost per pound of hot dogs increased by 20%.

Smithfield is already a familiar partner for the brand. Since 2014, Smithfield has held the rights to manufacture and sell Nathan’s products in the U.S., Canada, and parts of Mexico.

Smithfield confirmed it will continue to host the annual Nathan’s Famous Fourth of July International Hot Dog Eating Contest. The televised cultural staple draws tens of thousands of spectators to Coney Island every summer.

The board of directors at Nathan’s has approved the deal and recommended that shareholders vote in favor of the sale. The acquisition is expected to close in the first half of this year.

Smithfield Foods’ acquisition of Nathan’s Famous represents a calculated strategic consolidation rather than a market surprise. As Nathan’s primary manufacturing and distribution partner, Smithfield’s move is a textbook case of vertical integration. The deal allows Smithfield to secure end-to-end control of the supply chain while fully absorbing a quintessential American brand.

For Nathan’s, the merger provides a vital shield against macroeconomic volatility. Operating under the umbrella of a global giant—which reported $14.1 billion in revenue for 2024—offers Nathan’s the economies of scale and financial liquidity that an independent firm lacks. With hot dog production costs surging by 20% due to inflationary pressures, Smithfield’s massive procurement power and retail network are expected to stabilize margins and drive broader market penetration.

Crucially, Smithfield’s commitment to maintaining the annual hot dog eating contest suggests a sophisticated understanding of brand equity. Management clearly recognizes that Nathan’s value is not merely in its product, but in its unique position within the American cultural zeitgeist. By preserving this tradition, Smithfield avoids a potential public relations crisis and secures an intangible asset that carries more long-term weight than the figures on a balance sheet. In essence, Smithfield is not just acquiring a food processor; it is investing in a piece of American heritage.

This transaction carries no direct impact on the Vietnamese-American community. While Nathan’s Famous is a recognizable staple of the American fast-food landscape, corporate-level ownership changes do not trickle down to affect the community's core interests. This shift will have no bearing on the small business ecosystem—from local phở restaurants to the nail salon industry—nor will it influence broader diaspora concerns such as remittances or visa processing for categories like F2B, H-1B, or EB-5. For those living in hubs like Little Saigon, this remains a distant corporate move that leaves the community's daily life and economic priorities unchanged.