Jeff Crivello, CEO of the parent company of Famous Dave's, can see the light at the end of tunnel. But first, the company needs to get through the winter, as the coronavirus has started to spread at a higher rate.
BBQ Holdings, which also owns Granite City Food & Brewery, saw business pick up over the summer, similar to many of Minnesota's other public companies.
As Famous Dave's shifted to much more takeout business, the company rang up higher-than-expected sales in the quarter that ended Sept. 27.
"We're encouraged by our teams' efforts to adapt and evolve, shifting our business model to ghost kitchen concepts and more off-premise," Crivello said.
Total revenue for the third quarter was $35.5 million with earnings per share of 4 cents, beating analysts' expectations for both measures. While both revenue and earnings rose from last year, the increases were due to BBQ Holdings' purchase of the Granite City chain and other acquisitions.
Famous Dave's same-store net sales for company-owned stores decreased 4.6% over third-quarter 2019, but saw a slight increase in October. Franchise-owned stores saw a decline of 10%.
Granite City, which BBQ Holdings purchased early this year, experienced a 26% loss in same-store sales. Crivello said Granite City's lackluster performance stems from not moving as quickly as Famous Dave's to off-premise dining.
Granite City's model with two large private dining rooms per location makes the shift harder, but the company is adding six Famous Dave's ghost kitchens in six of 18 Granite City locations by March.
