Famous Dave's reports profits up, sales down

  • Article by: MIKE HUGHLETT , Star Tribune
  • Updated: August 5, 2014 - 7:56 PM

Famous Dave’s of America posted a mixed quarter Tuesday with its profits growing — due to cost cutting — but its sales falling.

The Minnetonka-based restaurant company reported second-quarter net income of $2.9 million or 39 cents per share, up from $2.1 million or 27 cents for the same time a year ago.

However, second-quarter revenue fell to $41.9 million from $43.6 million a year earlier, a decline grounded in weak same-store sales, a key financial gauge. Comparable sales for company-owned restaurants open 24 months or more were down 5.2 percent over a year ago.

“While the quarter’s comparable sales numbers were disappointing, they were partly the result of the elimination of the extensive e-mail discounting that occurred during the second quarter of fiscal 2013,” Famous Dave’s CEO Ed Rensi said in a statement.

“Despite the decline in top-line sales this quarter, we were pleased with the year-over-year improvements in operating income and earnings per share.”

Rensi, a former top McDonald’s executive, took over as Dave’s CEO earlier this year and is attempting to turn around the sluggish company. Famous Dave’s earnings were released after the market closed Tuesday.

 

Mike Hughlett • 612-673-7003

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