David Goronkin, president and chief executive officer, said the company is on track to nine additional stores in the fourth quarter. Year to date, the company has opened 17 franchise-operated restaurants and has closed two in the same category. Famous Dave's now has restaurants in 31 states, having added Colorado and New Hampshire during the third quarter.
During the company's earnings call Thursday, Goronkin also announced an additional 205 franchised locations that are in the development pipeline. However, he said the company remains focused on continuing its base of company-owned stores. "With leases coming up, we are considering relocations where there are favorable real estate opportunities," he told investors. He added that several stores would undergo renovations. The company posted total revenues of $26.3 million for the quarter, representing a 1.2% increase compared to last year. Net income for the quarter was approximately $1.2 million, or 11 cents per diluted share, compared to $1.3 million during the same period last year.
Franchise revenues increased 43.9% in the quarter, ringing in at $2.8 million. This increase was a reflection of a 35.8% increase in franchise-related fees, partially offset by a decline in restaurant sales. During the company's third quarter earnings call, executives said comparable store sales for company-owned restaurants were flat compared to the prior year.
"We are encouraged by our third quarter results considering the challenges our nation and the economy has faced over the last several months," said David Goronkin, president and chief executive officer. Goronkin said the company's positive quarter could be attributed to the company's debut television advertising campaign and the first price increase in the last 18 months.
During the nine months prior to the quarter's closing, the company reported net income of $3.7 million, or 33 cents per diluted share, on total revenue of approximately $77.8 million. This was compared with a net income of $2.8 million, or 23 cents per diluted share, on total revenue of $74 million for the first nine months of 2004.
As of Nov. 2, the company owned 38 locations and franchised 83 additional units in 31 states.
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