Strong comparable sales increases, successful new restaurant development and an emerging franchising program drove record results for Famous Dave’s of America, Inc. Total revenue for the quarter ended July 2, 2000 was $18.4 million, an increase of 45% over the second quarter of 1999. Comparable restaurant sales increased 4.5%, the fifth consecutive quarter of comparable sales growth. With the addition of higher volume units, restaurant average weekly volume for the second quarter increased 21% versus the second quarter of 1999. Net income totaled $1.1 million, or $.11 per share compared to a loss of $292,000, or ($.03) per share during the second quarter of 1999.
For the 26 weeks ended July 2, 2000, total revenue was $33.5 million, an increase of 45% over the first two quarters of 1999. Net income totaled $1. 2 million, or $.12 per share compared to a loss of $609,000, or ($.07) per share for the first two quarters of 1999.
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“We are very pleased with the sales and profit results, which reflect the ongoing emphasis on providing exceptional guest experiences at our restaurants while maintaining a focus on profitable sales growth,” said Martin O’Dowd, President and CEO of Famous Dave’s. “The second quarter also reflects the execution of the next phase of the company’s strategic plan, creating sources of additional revenues without incremental capital investment.”
During the quarter, Famous Dave’s sold its sauce and seasoning division to Famous Products, Inc., a transaction which will provide ongoing licensing revenue to the Company. The number of franchise restaurants grew from two to seven as the Company sold two existing company-owned restaurants and three new restaurants were opened during the quarter. Famous Dave’s also entered into a development agreement with William Theisen, the founder of Godfather’s Pizza, for five new franchise restaurants over the next four years. The sale of the restaurants and the sauce and seasoning division resulted in one-time gains of approximately $640,000 during the quarter.
“We also continued to invest in the future growth of the company,” said O’Dowd. “The current quarter’s results include over $300,000 in expenditures towards strengthening our restaurant management team through recruiting and training as we prepare for the additional company restaurants to be opened this year.”
Famous Dave’s of America, Inc. (NASDAQ:DAVE – news) develops, owns, operates and franchises barbeque restaurants and blues clubs. The company currently owns 29 locations and franchises an additional 7 units in Minnesota, Wisconsin, Illinois, Iowa, Nebraska, Maryland and Virginia. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.
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By GlobalDataCertain matters discussed within this press release, including statements regarding new restaurant sites, restaurant openings and expansion plans, may be 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.
Summary Income Statement Data (In thousands, except per share data)
13 Weeks Ended 13 Weeks Ended 26 Weeks Ended 26 Weeks Ended
July 2, 2000 July 4, 1999 July 2, 2000 July 4, 1999
Net
Revenue $ 18,354 $ 12,647 $ 33,459 $ 23,046
Net Income
(Loss) $ 1,104 ($292) $ 1,155 ($609)
Basic Net
Income (Loss)
per Common
Share $ 0.12 ($.03) $ 0.13 ($.07)
Diluted Net
Income (Loss)
per Common
Share $ 0.11 ($.03) $ 0.12 ($0.7)
Weighted
Average Shares
Outstanding –
Basic 9,090 8,839 9,080 8,838
Weighted
Average Shares
Outstanding –
Diluted 9,760 8,839 9,472 8,838
