Famous Dave's of America Inc (DAVE)

[Rawnoc]

Famous Dave's Reports First Quarter Earnings of $0.14 per share, Including $0.01
Non-Cash Charge

MINNEAPOLIS, Apr 27, 2011 (GlobeNewswire via COMTEX) -- Famous Dave's of America,
Inc. (DAVE) today announced revenue and net income of $37.1 million and $1.2
million, respectively, or $0.14 per diluted share, for the first quarter ended
April 3, 2011. This compares to revenue and net income of $32.6 million and $2.7
million, respectively, or $0.30 per diluted share, for the comparable period in
2010. First quarter 2011 results include a non-cash impairment charge of
approximately $148,000 or $0.01 per diluted share, primarily related to
non-recoverable assets for a company-owned restaurant that will be relocated
within its existing market in early 2013. Fiscal 2010's first quarter included a
$0.15 gain from the acquisition of seven New York and New Jersey franchise
restaurants in March 2010.

Same store sales for company-owned restaurants open for 24 months or more
increased 3.0 percent during the quarter and included a weighted average price
increase of approximately 2.0 percent. Additionally, the year over year shift of
the Easter holiday from the first quarter of 2010 to the second quarter of 2011
had a favorable impact of approximately 70 basis points on the quarter.

"While we are encouraged by our first quarter comparable sales and revenue
performance, we recognize that we have more work to do to improve our results,"
said Christopher O'Donnell, President and CEO of Famous Dave's of America. "We
continue to focus diligently on growing sales and controlling costs in this
unpredictable environment in order to continue to deliver better results for our
shareholders."

Franchise royalty revenue for the first quarter of 2011 totaled $4.0 million,
essentially flat to the comparable period in 2010. The results year over year
reflect a net increase of seven franchise-operated restaurants, offset by the
loss of two months of franchise royalties for the seven New York and New Jersey
restaurants and a 0.1% decline in franchise comparable sales.

Stock-based and Board of Directors Cash Compensation and Common Share Repurchase

Earnings results for the first quarter of 2011 included approximately $422,000 or
$0.03 per diluted share, in compensation expense related to the company's
stock-based incentive programs and board of directors' cash compensation, as
compared to approximately $355,000 or $0.03 per diluted share, for the prior year
comparable period. The year over year increase is primarily due to a higher stock
price.

The company repurchased approximately 246,000 shares of common stock during the
first quarter at an average price of $10.28 per share, excluding commissions, for
a total of approximately $2.5 million. The company has repurchased approximately
420,000 shares under its current 1.0 million share authorization at an average
price of $10.30 per share, excluding commissions, for a total of approximately
$4.3 million.

Marketing and Development

Development and marketing highlights during the quarter included a successful
"limited time offer" of "Citrus Grill" entrees featuring six items, paired with a
side of broccoli and grilled pineapple steaks at less than 600 calories each.

The current limited time offering, "Best in Smoke," is inspired by our founder,
Dave Anderson's upcoming television appearance on the ultimate BBQ showdown,
"Best in Smoke", on Food Network(R), and features two new recipes, "Smokin'
Blackberry Lettuce Wraps" and "Smokin' Blackberry Ribs." The multi-episode,
single elimination competition begins May 8, 2011 at 10 p.m. Eastern and Pacific
Time. We are also offering our brisket with a Dr. Pepper glaze and a beer pairing
with Sam Adams Blackberry Witbier.

Famous Dave's opened three new franchise-operated restaurants during the first
quarter, in Lawrence, KS, Reno, NV and Henderson, NV. Three franchise-operated
locations closed during the quarter in Omaha, NE, Pensacola, FL, and Kansas City,
KS. Famous Dave's ended the quarter with 182 restaurants, including 52
company-owned restaurants and 130 franchise-operated restaurants, located in 37
states.

Outlook

The company reiterates its guidance on restaurant development, as issued in its
fourth quarter earnings release, and anticipates opening approximately 12 new
restaurants in fiscal 2011, including one company-owned restaurant.

Conference Call

The company will host a conference call tomorrow, April 28, 2011, at 10:00 a.m.
Central Time to discuss its first quarter financial results. There will be a live
webcast of the discussion through the Investor Relations section of Famous Dave's
web site at http://www.famousdaves.com.

About Famous Dave's

Famous Dave's of America, Inc. develops, owns, operates and franchises barbeque
restaurants. As of today, the company owns 52 locations and franchises 130
additional locations in 37 states, and is known for its on-premise real pit
smokers, scratch-recipe cooking, and over 500 national and regional awards. Its
menu features award-winning barbequed and grilled meats, an ample selection of
salads, side items, sandwiches, and unique desserts.

The Famous Dave's of America, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7726

FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
APRIL 3, 2011 AND APRIL 4, 2010
(in thousands, except share and per share data)
(Unaudited)


Three Months Ended
--------------------
April 3,April 4,

20112010
------------------
Revenue:
Restaurant sales, net$ 32,741$ 28,393
Franchise royalty revenue4,0293,982
Franchise fee revenue4040

Licensing and other revenue280184
------------------

Total revenue37,09032,599
------------------

Costs and expenses:
Food and beverage costs9,6538,327
Labor and benefits costs10,4379,249
Operating expenses9,0747,628
Depreciation and
amortization1,3751,292
General and administrative
expenses4,3243,811
Asset impairment and
estimated lease
termination and other
closing costs171(74)
Pre-opening expenses---27
Gain on acquisition, net of
acquisition costs---(2,036)
Net loss on disposal of
property1---
------------------

Total costs and expenses35,03528,224
------------------


Income from operations2,0554,375
------------------

Other expense:
Interest expense(279)(300)
Interest income639

Other income, net87
------------------

Total other expense(265)(254)
------------------

Income before income taxes1,7904,121


Income tax expense(608)(1,414)
------------------


Net income$ 1,182$ 2,707
==================

Basic net income per common
share$ 0.15$ 0.30
==================

Diluted net income per common
share$ 0.14$ 0.30
==================

Weighted average common
shares outstanding basic8,118,0008,999,000
==================

Weighted average common
shares outstanding diluted8,302,0009,162,000
==================



See accompanying notes to consolidated financial statements.




FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
OPERATING RESULTS
(unaudited)

Three Months
Ended
--------------
AprilApril
3,4,

20112010
------------
Food and beverage costs(1)29.5%29.3%
Labor and benefits(1)31.9%32.6%
Operating expenses(1)27.7%26.9%
Depreciation & amortization (restaurant
level)(1)3.8%4.0%
Depreciation & amortization (corporate
level)(2)0.4%0.4%
General and administrative(2)11.7%11.7%
Asset impairment and estimated lease
termination
and other closing costs(1)0.5%(0.3)%
Pre-opening expenses and net loss on
disposal of equipment(1)---0.1%
Gain on acquisition, net of acquisition
costs(1)---(7.2)%

Total costs and expenses(2)94.5%86.6%
Income from operations(2)5.5%13.4%


----------------------------------------

(1)As a percentage of restaurant sales, net
(2)As a percentage of total revenue




FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
January
April 3,2,

20112011
------------------
ASSETS
Cash and cash
equivalents$ 2,671$ 2,654
Other current assets8,9298,593
Property, equipment and
leasehold improvements,
net60,59561,550

Other assets3,2913,332
------------------

Total assets$ 75,486$ 76,129
==================

LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities$ 11,767$ 13,854
Line of credit15,40013,000
Other long-term
obligations16,29316,371

Shareholders' equity32,02632,904
------------------
Total liabilities and
shareholders' equity$ 75,486$ 76,129
==================




FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

Three Months
Ended
-----------------
April
3,April 4,

20112010
---------------

Cash flows provided by operating activities$ 525$ 364
Cash flows used for investing activities(447)(7,461)
Cash flows (used for) provided by financing
activities(61)5,742
---------------
Net increase / (decrease) in cash and cash
equivalents$ 17$ (1,355)
===============




SUPPLEMENTAL SALES INFORMATION
(unaudited)


Three Months Ended
--------------------
April 3,April 4,

20112010
------------------

Restaurant sales (in
thousands):
Company-Owned$ 32,741$ 28,393
Franchise-Operated$ 86,574$ 85,141

Total number of
restaurants:
Company-Owned5252

Franchise-Operated130123
------------------
Total182175

Total weighted average
weekly net sales (AWS):
Company-Owned$ 48,433$ 45,821
Franchise-Operated$ 52,738$ 52,327
AWS 2005 and Post
2005:(1)
Company-Owned$ 53,045$ 52,156
Franchise-Operated$ 55,832$ 56,629

AWS Pre-2005:(1)
Company-Owned$ 45,551$ 43,105
Franchise-Operated$ 46,668$ 45,437

Operating weeks:
Company-Owned676613
Franchise-Operated1,6411,626

Comparable net sales (24
month):
Company-Owned %3.0%(3.5)%
Franchise-Operated %(0.1)%(3.4)%

Total number of
comparable restaurants:
Company-Owned4441
Franchise-Operated10395


------------------------

(1)Provides further delineation of AWS for
restaurants opened during the pre-fiscal
2005, and restaurants opened during the
post-fiscal 2005, timeframes.



Statements in this press release that are not strictly historical, including but
not limited to statements regarding the timing of our restaurant openings and the
timing or success of our expansion plans, are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks, which may cause the
company's actual results to differ materially from expected results. 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 expectation will be attained. Factors that could cause actual
results to differ materially from Famous Dave's expectation include financial
performance, restaurant industry conditions, execution of restaurant development
and construction programs, franchisee performance, changes in local or national
economic conditions, availability of financing, governmental approvals and other
risks detailed from time to time in the company's SEC reports.

This news release was distributed by GlobeNewswire, http://www.globenewswire.com

SOURCE: Famous Dave's of America
CONTACT: Diana G. Purcel - Chief Financial Officer
952-294-1300


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