Famous Dave's Reports Revenue Growth

Famous Dave's of America, Inc. (Nasdaq: DAVE) reports 1st quarter revenue of $20.5 million, representing 35% growth over the same period of last year and net income of $396,000 or $0.04 per diluted share, an increase of 300% over the first quarter of 2000. Comparable store sales increased 3.3%, representing the 8th consecutive quarter of positive same-store sales growth. Average weekly volume during the first quarter increased 16.3% to $45,800 compared to the first quarter of last year.

The company opened two new restaurants in the Chicago area during the quarter, bringing the total of company owned locations to 35. One franchised location opened in Omaha, Nebraska raising the total of franchised units in operation to 10. In addition, one multi-site development agreement was signed for three locations, bringing the total number of franchised stores opened or under contract to 39.

Revenue from licensed products benefited from Hormel Foods Corporation's first full quarter of marketing behind the four retail barbecue meat products featuring Famous Dave's award-winning "Rich and Sassy" sauce. Hormel currently sells the Famous Dave's product in grocery stores across the country such as Winn Dixie, Giant, Wal-Mart, Cub Foods and Rainbow Foods.

"Each of our three core businesses, including company locations, franchised locations and license revenue from retail products, contributed to earnings this quarter,'' said Martin O'Dowd, President and CEO of Famous Dave's. "We are just beginning to realize the potential of our three-pronged growth strategy and are encouraged by the franchising interest and activity as well as the early licensing revenue from our retail products,'' O'Dowd continued.

Looking forward, the Company confirmed earlier estimates that it will open between six and eight new company locations and ten to twelve new franchise locations in fiscal 2001. One company owned restaurant and two franchised restaurants are expected to open in the 2nd quarter. The company expects to finish the year with total revenue nearing $90 million and earning per diluted share in excess of $0.35. 2nd quarter estimates are for revenues of approximately $21-22 million with earnings per diluted share ranging from $0.11 to $0.13.