Famous Dave's said its profits fell this spring, but it saw progress from the franchised locations that make up the bulk of the barbecue chain.
Comparable sales at its franchised units rose for only the second time in since 2011. The gain was small at 0.7% in the second quarter, which ended June 30.
However, it represented an important step forward for executives who have wanted franchisees to adopt some of the innovations taken earlier at corporate-owned locations.
"The franchisees are starting to reinvest and refresh their stores," Famous Dave's Chief Executive Jeff Crivello said Monday. "They saw what happened when a franchisee with five stores in Seattle and Utah saw a 20% lift after a refresh."
Crivello, since taking the helm of the Minnetonka-based company in November 2017, has experimented with menu and decor changes that have yielded some gains at Famous Dave's 33 company-owned units, including many in the Twin Cities region.
Famous Dave's has also steadily reduced its location count to cut losses and improve efficiency.
As of Monday, the company operated 134 restaurants, compared to 150 a year ago.
Revenue increased to $21.1 million from $14.5 million a year ago. Corporate-owned locations saw a sales decrease of 0.8%.