Famous Dave's of America, Inc. reported financial results for the second quarter ending July 3.
Highlights for the second quarter of 2016 as compared to the second quarter of 2015:
Comparable sales for company-owned restaurants open 24 months or more decreased 6.4 percent compared to a decrease of 10.8 percent for the same period in 2015.
Franchise royalty revenue increased slightly from $4.6 million to $4.7 million primarily reflecting the refranchising of the seven Chicago restaurants late in the first quarter 2016, partially offset by a comparable sales decrease of 4.3 percent.
Restaurant-level operating margin at company-owned restaurants decreased 60 basis points primarily as a result of year over year increase in food costs and increased labor and benefit costs as a result of sales deleverage. These increases were partially offset by a year-over-year decline in operating expenses.
General and administrative expenses decreased from approximately $4.9 million to approximately $4.8 million for the second quarter of 2016. This decrease was moderated by increased legal costs for franchise related matters and professional fees related to brand development, which were not repeated in the second quarter of 2016.
Adam Wright, CEO, says, “The board and management team remain focused on the four key priorities that will enable the re-energizing of the company’s performance which include building sales and traffic, reducing costs, elevating organization effectiveness, and rebuilding culture. The effects of strategic actions implemented in the past year which have improved guest satisfaction and improved value on the menu, lends confidence to our plan and the path ahead, especially as we continue to add additional affordability to the menu and start to reinvest in marketing.”
Famous Dave's ended the quarter with 179 restaurants, including 37 company-owned restaurants and 142 franchise-operated restaurants, located in 33 states, the Commonwealth of Puerto Rico, Canada, and United Arab Emirates.
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