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Famous Dave's of America Inc. (DAVE) filed Quarterly Report for the period ended 2011-10-02.
Famous Dave's Of America Inc. has a market cap of $71.8 million; its shares were traded at around $8.914 with a P/E ratio of 12.9 and P/S ratio of 0.5. Famous Dave's Of America Inc. had an annual average earning growth of 8.3% over the past 10 years. GuruFocus rated Famous Dave's Of America Inc. the business predictability rank of 3.5-star.
This is the annual revenues and earnings per share of DAVE over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of DAVE.
Highlight of Business Operations:
Our revenue consists of restaurant sales, franchise-related revenue, and licensing and other revenue. Our franchise-related revenue is comprised of area development fees, initial franchise fees, and continuing royalty payments. Our area development fee consists of a one-time, non-refundable payment equal to $10,000 per restaurant in consideration for the services we perform in preparation of executing each area development agreement. Substantially all of these services, which include but are not limited to conducting market and trade area analysis, a meeting with Famous Dave’s Executive Team, and performing potential franchise background investigation, are completed prior to our execution of the area development agreement and receipt of the corresponding area development fee. As a result, we recognize this fee in full upon receipt. Our initial, non-refundable, franchise fee typically ranges from $30,000 to $40,000 per restaurant, of which $5,000 is recognized immediately when a franchise agreement is signed, reflecting the commission earned and expenses incurred related to the sale. The remaining non-refundable fee of $25,000 to $35,000 is included in deferred franchise fees and is recognized as revenue when we have performed substantially all of our obligations, which generally occurs upon the franchise entering into a lease agreement for the restaurant(s). The franchise agreement represents a separate and distinct earnings process from the area development agreements. Franchisees are also required to pay us a monthly royalty equal to a percentage of their net sales, which has historically varied from 4% to 5%. In general, new franchises pay us a monthly royalty of 5% of their net sales.Total revenue of approximately $38.9 million for the third quarter of fiscal 2011 increased approximately $224,000, or 0.6%, from total revenue of $38.7 million in the comparable quarter in fiscal 2010. For the nine months ended October 2, 2011, total revenue of approximately $117.3 million increased approximately $5.3 million, or 4.7% over revenue of approximately $112.1 million, for the nine months ended October 3, 2010.
Restaurant sales were approximately $34.3 million for the third quarters of fiscal 2011 and 2010. Our restaurant sales reflect the addition of two new-company owned restaurants in Bel Air, Maryland and Falls Church, Virginia, which opened August of 2010 and 2011, respectively. These increases were offset by the comparable sales decrease of 0.1%. Comparable sales for the quarter reflected the negative impact from weather-related events on the East coast equal to approximately 70 basis points, and also included a weighted average price increase of approximately 3.4%. As a breakdown of the third quarter comparable sales, on a weighted basis, dine-in represented a decline of 1.9%, almost completely offset by increased off-premise sales of 1.8%. For the third quarter of fiscal 2011, off-premise sales were 34.1% of total net sales, with catering representing 13.2% and To-Go representing 20.9%. This compares to off-premise sales of 32.1% for the prior year’s third quarter.
Labor and benefits costs for the third quarter ended October 2, 2011 were approximately $10.8 million or 31.6% of net restaurant sales, compared to approximately $10.9 million or 31.9% of net restaurant sales for the three months ended October 3, 2010. Labor and benefits for the nine months ended October 2, 2011 were approximately $32.4 million or 31.3% of net restaurant sales, compared to approximately $31.2 million or 31.6% of net restaurant sales for the nine months ended October 3, 2010.
General and administrative expenses for the third quarter of 2011 were approximately $4.0 million or 10.3% of total revenue, compared to approximately $4.0 million or 10.4% of total revenue for the third quarter of fiscal 2010. General and administrative expenses as a percent of total revenue, excluding stock-based compensation and board of directors’ cash compensation, were 9.2% for the third quarter of 2011 and 9.6% for the third quarter of 2010, respectively. General and administrative expenses for the first nine months of fiscal 2011, respectively, were approximately $12.5 million or 10.7% of total revenue compared to approximately $11.8 million or 10.5% of total revenue for the first nine months of fiscal 2010.
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