8-K: Nathan's Famous Changes Accounting Firms: Marcum LLP Resigns, CBIZ CPAs P.C. Engaged

Nathan's Famous, Inc. announces the resignation of Marcum LLP as its independent registered accounting firm and the engagement of CBIZ CPAs P.C., effective February 20, 2025.

Summary

• On February 20, 2025, Marcum LLP resigned as the independent registered accounting firm for Nathan's Famous, Inc.
• The resignation was prompted by CBIZ CPAs P.C.'s acquisition of Marcum's attest business on November 1, 2024.
• With the approval of the Audit Committee, Nathan's Famous engaged CBIZ CPAs P.C. as its new independent registered public accounting firm on February 20, 2025.
• Marcum's reports on the company's financial statements for the fiscal years ended March 31, 2024, and March 26, 2023, did not contain any adverse opinions, disclaimers, or qualifications.
• There were no disagreements between Nathan's Famous and Marcum regarding accounting principles, financial statement disclosure, or auditing scope during the relevant periods.
• Nathan's Famous did not consult with CBIZ CPAs P.C. on accounting principles or audit opinions prior to their engagement.
• Marcum has provided a letter to the SEC agreeing with the statements made by Nathan's Famous regarding their resignation.

Sentiment

Score: 7

Explanation: The announcement is neutral to slightly positive. The change in auditors is due to a merger, and there were no disagreements or issues with the previous auditor. This suggests a smooth transition and no underlying problems.

Positives

• Marcum's audit reports for the fiscal years ended March 31, 2024, and March 26, 2023, were unqualified, indicating a clean audit history.
• The transition to CBIZ CPAs P.C. was approved by the Audit Committee, suggesting proper governance oversight.
• Marcum agreed with the statements made by Nathan's Famous regarding their resignation, ensuring transparency.

Industry Context

Changes in accounting firms are not uncommon, especially following mergers or acquisitions within the accounting industry. Companies often switch auditors to maintain independence or to align with a firm that better suits their needs.

Comparison to Industry Standards

• The engagement of a new auditor following a merger or acquisition of the previous auditor's practice is a standard practice in the industry.
• Companies like McDonald's, Wendy's, and Restaurant Brands International also use large, reputable accounting firms for their audits.
• The fact that there were no disagreements or reportable events is a positive sign, aligning with industry best practices for auditor relationships.

Stakeholder Impact

• Shareholders may be interested in the change of accounting firms, but the lack of disagreements or issues suggests minimal impact.
• Employees are unlikely to be directly affected by this change.
• Customers and suppliers should not be impacted by this change.

Key Dates