Famous Dave’s of America Inc. cited increased consumer spending across its dine-in, carryout and catering businesses for gains in revenue and corporate same-store sales in the fourth quarter and full year.
The operator or franchisor of 180 casual-dining barbecue restaurants reported net income of $517,000, or 6 cents per share, for the Jan. 2-ended fourth quarter. That compares with earnings of $774,000, or 8 cents per share, in last year’s fourth quarter, which included an extra operating week. Revenue rose 11 percent to $36.2 million, compared with $32.6 million a year earlier.
Same-store sales increased 3.3 percent at corporate stores and fell 0.8 percent at franchised outlets.
“I’m proud of the solid results that our organization, led by operations, delivered in 2010,” said president and chief executive Christopher O’Donnell. “However, as we enter 2011, with strong momentum and confidence that business conditions are beginning to improve, we remain cautious about the rising price environment and the potential impact it could have on consumer confidence and restaurant-level margins.”
For the full year, Famous Dave’s reported net income of $7.2 million, or 82 cents per share, compared with $5.7 million, or 62 cents per share, a year earlier. Results for 2010 included a one-time benefit of $2 million, or 15 cents per share, related to the purchase of seven restaurants from a former franchisee in New York and New Jersey and the termination of a lease in Marietta, Ga.
Full-year revenue increased 9 percent to $148.3 million, compared with $136 million a year earlier. Same-store sales rose 0.7 percent at corporate restaurants and fell 0.8 percent at franchised units for the year.
Famous Dave’s reported higher revenues across its three lines of business for the full year and said it took a 1.2-percent menu price increase during 2010.
Famous Dave’s said it plans to open between 10 and 12 net units in 2011, and will spend about $5.5 million on capital expenditures to open one corporate unit and remodel and maintain several restaurants.
Minneapolis-based Famous Dave’s operates 52 restaurants and franchises another 128 locations in 37 states.
Contact Mark Brandau at [email protected].