Famous Dave’s of America, Inc. (Nasdaq: DAVE) yesterday reported 1st quarter revenue of $20.5 million, representing 35% growth over the same period of last year and net income of $396,000 or $0.04 per diluted share, an increase of 300% over the first quarter of 2000. Comparable store sales increased 3.3%, representing the 8th consecutive quarter of positive same-store sales growth. Average weekly volume during the first quarter increased 16.3% to $45,800 compared to the first quarter of last year.

The Company opened two new restaurants in the Chicago area during the quarter, bringing the total of company owned locations to 35. One franchised location opened in Omaha, Nebraska raising the total of franchised units in operation to 10. In addition, one multi-site development agreement was signed for three locations, bringing the total number of franchised stores opened or under contract to 39.

Revenue from licensed products benefited from Hormel Foods Corporation’s first full quarter of marketing behind the four retail barbecue meat products featuring Famous Dave’s award-winning “Rich and Sassy” sauce. Hormel currently sells the Famous Dave’s product in grocery stores across the country such as Winn Dixie, Giant, Wal-Mart, Cub Foods and Rainbow Foods.

“Each of our three core businesses, including company locations, franchised locations and license revenue from retail products, contributed to earnings this quarter,” said Martin O’Dowd, President and CEO of Famous Dave’s. “We are just beginning to realize the potential of our three-pronged growth strategy and are encouraged by the franchising interest and activity as well as the early licensing revenue from our retail products,” O’Dowd continued.

Looking forward, the Company confirmed earlier estimates that it will open between six and eight new company locations and ten to twelve new franchise locations in fiscal 2001. One company owned restaurant and two franchised restaurants are expected to open in the 2nd quarter. The company expects to finish the year with total revenue nearing $90 million and earning per diluted share in excess of $0.35. 2nd quarter estimates are for revenues of approximately $21-22 million with earnings per diluted share ranging from $0.11 to $0.13.

About Famous Dave’s of America

Famous Dave’s owns, operates and franchises barbeque restaurants and blues clubs. The company currently owns 35 locations and franchises 10 locations in Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Utah, Maryland and Virginia and has signed development agreements for an additional 29 franchised locations. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.

Certain matters discussed within this press release, including statements regarding revenue and profit forecasts, new restaurant sites, restaurant openings and expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Famous Dave’s of America, Inc. believes the expectation reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectation will be attained. Factors that could cause actual results to defer materially from Famous Dave’s expectation include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, changes in local or national economic conditions, availability of financing and other risks detailed from time to time in the company’s SEC reports.

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS

For the Quarter Ended 4/1/01 and 4/2/00
(in thousands, except per share data)
Quarter Ended 4/1/01 4/2/00
—— ——
Revenues, net $20,469 $15,105
Costs and expenses:
Food and beverage costs 6,446 4,980
Labor and benefits 5,737 4,250
Operating expenses 4,811 3,514
Depreciation and amortization 1,083 868
Pre-opening expenses 293 192
General and administrative 1,451 1,025
——- ——-
Total costs and expenses 19,821 14,829
—— ——
Income from operations 648 276
Other income (expense):
Interest expense (336) (225)
Other income 84 0
——— ——-
Total other income (expense) (252) (225)
——– ——-
Net income $396 $51
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Basic net income per common share $0.04 $0.01
Diluted net income per common share $0.04 $0.01

Weighted average common shares
outstanding – basic 9,464,000 9,069,000
Weighted average common shares
outstanding – diluted 10,229,000 9,167,000

Unit-Level Costs And Expenses as
% Sales: Quarter Ended 4/1/01 4/2/00
—— ——
Food and beverage costs 32.0% 33.0%
Labor and benefits 28.5% 28.2%
Operating expenses 23.9% 23.3%
Depreciation and amortization 5.4% 5.4%
Pre-opening expenses 1.5% 1.3%
—- —-
Total costs and expenses 91.3% 91.2%
Income from unit-level operations 8.7% 8.9%
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FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of April 1, 2001 and December 31, 2000
(in thousands, except per share data)

ASSETS 4/1/01 12/31/00
—— ——–

Current assets $4,032 $4,946
Property, equipment and leasehold
improvements, net 47,453 46,053
Other assets 1,921 1,965
—– —–
Total Assets $53,406 $52,964
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LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities $8,686 $9,410
Long-term obligations 13,899 13,493
Shareholders’ equity 30,821 30,061
—— ———
Total Liabilities and
Shareholders’ Equity $53,406 $52,964
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