MINNETONKA Minn. Famous Dave’s of America said effective promotions and operational execution helped improve results in the fourth quarter and full fiscal 2009.
The operator or franchisor of the 176-unit Famous Dave’s barbecue chain said fourth-quarter net income was $774,000, or 8 cents per share, compared with a net loss of $2 million, or 22 cents per share, in the fourth quarter of 2008. Revenue fell slightly to $32.6 million for the Jan. 3-ended fourth quarter, from $32.8 million a year earlier.
Same-store sales for the fourth quarter declined 3.4 percent at company-owned restaurants and 8.5 percent at franchised units. Sales declines were offset slightly by weighted average price increases of about 2.3 percent since December 2008, the company said, adding that promotions like a 12-ounce smoked rib eye and a limited-time meatloaf entree were rolled out to spur sales.
“We were pleased with the response to our targeted promotional efforts during the fourth quarter, which helped boost sales and traffic for dine-in, to-go and catering,” said Christopher O’Donnell, president and chief executive of Famous Dave’s. “Additionally, our operations team did a ‘famous’ job of executing and maintaining a high level of guest satisfaction during the quarter, and despite the challenging sales environment of 2009, the company delivered solid financial results.”
Net income for fiscal 2009 rose to $5.7 million, or 62 cents per share, compared with net income of $389,000, or 4 cents per share, in 2008. Revenue fell 3.1 percent to $136 million, from $140.4 million a year earlier.
Same-store sales for the year declined 6.3 percent at corporate stores and 8.5 percent at franchised restaurants.
Fiscal 2009’s fourth-quarter and full-year results included a 5-cent benefit from a 53rd fiscal week, compared with 52 fiscal weeks in 2008. Famous Dave’s also booked a net charge of 5 cents per share for asset impairments, lease terminations and other closing costs, and early debt retirement. The previous year’s earnings results, however, had larger impairment charges of 23 cents for the fourth quarter and 49 cents for the full year.
Following its $6.8 million acquisition Tuesday of seven Famous Dave’s stores from bankrupt franchisee North Country BBQ, Minnetonka-based Famous Dave’s of America operated 52 locations and franchised another 124 units in 36 states.
Contact Mark Brandau at [email protected].
