Famous Dave's to Emphasize Franchise Development
MINNEAPOLIS--(BUSINESS WIRE)--June 12, 2003--Famous Dave's of America, Inc. (Nasdaq:DAVE) today announced a growth strategy focused on a heavier mix of franchise-operated restaurants. The Company cited momentum in its franchise system and the strength of recent franchise development as key reasons for its decision. As a result of the reallocation of resources to support the growth of the franchise system, the Company stated that it would slow the growth rate for developing new company-operated restaurants.
"This new direction builds on our core strengths - the Famous Dave's brand and the strength of our franchise community." Said Ken Stanecki, Chief Financial Officer for Famous Dave's of America, Inc. "While this new focus will lower the long term revenue growth rate for the Company, it will accelerate our penetration into new markets, reduce capital expenditures and lessen risk and increase returns to our shareholders."
The Company's revenues from franchise-operated restaurants consist of up-front fees and royalties based on restaurant revenues.
Two new company-operated restaurants have opened so far in 2003, with a third expected to open by the end of June. The Company does not expect to open any additional company-operated restaurants during fiscal 2003. Five franchise-operated restaurants have opened during 2003 with two additional locations expected to open within the next thirty days. The Company's franchise development objective continues to be a total of 20 new franchise-operated restaurants opened during fiscal 2003. The Company also stated that comparable sales at company-operated restaurants were down approximately 2 to 3% through the first eleven weeks of the 2nd quarter.
About Famous Dave's of America
Famous Dave's of America, Inc. (Nasdaq:DAVE) owns, operates and franchises barbeque restaurants. The company currently owns 42 locations and franchises an additional 38 units in 21 States and has signed development agreements for an additional 141 franchised locations. Its menu features award-winning barbecued and grilled meats, an ample selection of salads, side items, sandwiches and unique desserts.
Certain matters discussed within this press release, including revenue and earnings expectations, restaurant openings and expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Famous Dave's of America, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Famous Dave's expectations include, financial performance, restaurant industry conditions, execution of restaurant development and construction programs, changes in local or national economic conditions, availability of financing and other risks detailed from time to time in the company's SEC reports.
CONTACT: Famous Dave's of America, Inc., Minneapolis Ken Stanecki, 952/294-1300 SOURCE: Famous Dave's of America, Inc.