Famous Dave’s of America, Inc. (NASDAQ:DAVE) reported its latest quarterly earnings results late Monday, which topped the company’s year-ago results by a clear margin.
The barbecue restaurant chain reported fiscal 2018 first-quarter net income from continuing operations of $998,000, or 13 cents per share, which was considerably stronger than the company’s net loss from continuing operations of $1.4 million, or 21 cents per share, from the year-ago quarter.
Famous Dave’s added that its consolidated adjusted EBITDA came in at $1.8 million, a 394% increase compared to the year-ago period. It was a solid quarter for the chain’s company-owned comparable restaurant sales as well, which were up by 5.2%, with traffic gaining 5.3%.
The company’s franchise-operated comparable restaurant sales declined by about 1.6% compared to the year-ago quarter. Total revenue for Famous Dave’s first quarter came in at $1.28 million, which was a 24.2% drop compared to the year-ago quarter.
The company’s net restaurant sales revenue was down due to the closure of 12 company-owned restaurants, which were partially offset by the increase in same-store sales. These restaurants were closed due to declines in franchise royalty and fee revenue.
Famous Dave’s restaurant-level operating margin for the company-owned restaurants was 0.5%, a decrease from 0.8%, in the first quarter of fiscal 2017. This is partially due to a smaller restaurant base over which to allocated fixed costs, but it was partially offset by lower labor costs.
DAVE shares were down 1.9% during regular trading hours, but recovered and surged up about 7.7% after the bell.