Famous Dave's returns to profitability with Q1 results
Famous Dave's of America appears to be on the rebound if it's 2018 Q1 financial results are any indication. Net income for the quarter ending April 1 was $998,000, or $0.13 per share, compared to net loss from continuing operations of $1.4 million, or ($0.21) per share in the prior year, according to the company.
Consolidated adjusted EBITDA, a non-GAAP measure, increased 394 percent to $1.8 million. Likewise, though franchise-operated comparable sales fell 1.6 percent, company-owned comparable sales grew 5.2 percent, with traffic up 5.3 percent.
Other results include:
- A total of 152 locations this quarter, compared to 173 in Q1 2017.
- The number of company-owned locations fell more than half year over year, from 35 last year to 16 this year.
- Total revenue dropped 24.2 percent from last year's quarter to $1.28 million.
- Operating margin for company-owned stores was down 0.8 percent to 0.5 percent ffrom last year's quarter, largely due to smaller base, but partly offset by lower labor costs.
"We saw many of our previously announced initiatives come to fruition in the first quarter of fiscal 2018 as we returned to profitability and continued to see positive comparable sales at Company-owned restaurants," CEO Jeff Crivello, said in the release. "We believe the continued adoption of third-party delivery will help drive the top-line performance of our franchisees throughout the year as only half of the serviceable units are currently live. We look forward to focusing on strategic investments to enhance our brand and value proposition to current and prospective franchisees."
Topics: Franchising & Growth