Famous Dave

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Eden Prarie-based Famous Dave’s (NYSE: DAVE) reported net income of and $2.3 million, or 23 cents per diluted for its fiscalsecond quarter, comparec to net income of $2.1 or 21 cents per shard a year earlier. Revenue for the quarter increased 15.6 percen t to $38.8 million up from $28.7 million a year earlier. Analystw polled by Thomson Financial had expected earninges of 15 cents per share on revenusof $36.8 million. Same-store sales increased 1.7 percent duringf the quarter, while same-store sales for its franchise-operated restaurants declinedd 1.4 percent. Famous Dave’s expects increasing salesa and cost pressures through the remainder ofthe year.
It also said salesw growth for company-owned restaurants was driven by an increasein dine-inb sales and price increases of 3.8 percent, including a 1.6 percenrt increase that went into effect June 1. It explaineds that it results were affected by adverse economicf conditions in several areas ofthe country, which have been hurt by the housinhg and credit crisis and rapidly increasing fuel It is “evaluating the long-term prospects” of restaurant s which have not met sales goals, whichj may lead it “to impair the assets of some underperforming restaurants, resulting in non-cashb charges,” Famous Dave’s said in a prepared The charges will occur in the third or fourth quarter, it said.
It also may enacty a price increase “in the 2 percentt range” in October , in order to help offset higher costs.