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Famous Dave’s 2Q net drops 5.3%

Famous Dave’s of America Inc. reported lower second quarter net income Wednesday as costs grew faster than revenue. The latter benefitted from price increases and additional restaurants, but suffered from negative sytemwide same-store sales.

The Minnetonka, Minn.-based parent of the Famous Dave’s casual-dining chain said that for the quarter ended July 3, net income dropped 5.3 percent to $2.4 million, versus $2.5 million a year earlier.

Revenue rose 1.33 percent to $41.3 million, as company-store sales increased by 0.8 percent to $36.5 million. Franchise fees and royalties and licensing income rose as well.

Quarterly same-store sales dipped 1.2 percent at company restaurants, despite a weighted average price increase of 2 percent, the company said, and declined by 1.4 percent at franchised locations.

The Famous Dave’s system ended the quarter with 52 company-operated restaurants and 129 franchised units, up from 52 company and 125 franchised units at the end of 2010’s second quarter.

For the first six months, Famous Dave’s reported net income of $3.6 million, compared to $5.2 million net income in 2010’s first half. Revenue rose 6.86 percent to $78.4 million, the company indicated, as company restaurant same-store sales climbed 0.9 percent, compared to a drop of 1.4 percent in the same period a year earlier.

For the first two quarters, franchise restaurant same-store sales decreased 0.7 percent, Famous Dave’s said.

“We were pleased with our operational execution, our guest feedback ratings and our new product innovation during the quarter,” said Christopher O’Donnell, Famous Dave’s president and chief executive. “Despite the impact from the shift in the calendar during the second quarter, we remain encouraged that our year-to-date comparable sales were positive.”

O’Donnell added that “while our off-premise sales results were encouraging, they weren’t enough to offset the weakness in our dine-in business, which still reflects the general softening of consumer confidence.”

Contact Alan J. Liddle at [email protected].

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