X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MINNEAPOLIS-During its third quarter ended Oct. 2, barbeque chain Famous Dave’s of America Inc. entered into area development agreements for 15 new restaurants in the Tampa Bay, Florida area, the Northwestern portion of Florida, and Mobile and Montgomery, Alabama.

David Goronkin, president and chief executive officer, said the company is on track to nine additional stores in the fourth quarter. Year to date, the company has opened 17 franchise-operated restaurants and has closed two in the same category. Famous Dave’s now has restaurants in 31 states, having added Colorado and New Hampshire during the third quarter.

During the company’s earnings call Thursday, Goronkin also announced an additional 205 franchised locations that are in the development pipeline. However, he said the company remains focused on continuing its base of company-owned stores. “With leases coming up, we are considering relocations where there are favorable real estate opportunities,” he told investors. He added that several stores would undergo renovations. The company posted total revenues of $26.3 million for the quarter, representing a 1.2% increase compared to last year. Net income for the quarter was approximately $1.2 million, or 11 cents per diluted share, compared to $1.3 million during the same period last year.

Franchise revenues increased 43.9% in the quarter, ringing in at $2.8 million. This increase was a reflection of a 35.8% increase in franchise-related fees, partially offset by a decline in restaurant sales. During the company’s third quarter earnings call, executives said comparable store sales for company-owned restaurants were flat compared to the prior year.

“We are encouraged by our third quarter results considering the challenges our nation and the economy has faced over the last several months,” said David Goronkin, president and chief executive officer. Goronkin said the company’s positive quarter could be attributed to the company’s debut television advertising campaign and the first price increase in the last 18 months.

During the nine months prior to the quarter’s closing, the company reported net income of $3.7 million, or 33 cents per diluted share, on total revenue of approximately $77.8 million. This was compared with a net income of $2.8 million, or 23 cents per diluted share, on total revenue of $74 million for the first nine months of 2004.

As of Nov. 2, the company owned 38 locations and franchised 83 additional units in 31 states.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.