Famous Dave’s of America has re-acquired its ten stores in Colorado, Wisconsin, Michigan and Ohio since the start of this year.
The company, which owns and operates barbeque restaurants globally, invested $4.2m to reacquire four Famous Dave’s restaurants in Colorado and $132,000 to buy the remaining six restaurants in the other three US states.
These restaurants are sold as part of the company’s re-franchising strategy announced in May 2017 in a bid to focus solely on its franchisees.
The company mentioned that it will re-franchise 33 company-owned restaurants over the next 12 to 24 months.
Famous Dave’s CEO Jeff Crivello said: “We completed the reacquisition of four stores in the Colorado market before the end of the quarter and reacquired six stores in Michigan, Wisconsin and Ohio subsequent to the end of the quarter.
“We intend to strategically refresh the stores in these markets and believe that higher efficiencies at these locations will result in higher cash flows from previous levels while under franchise ownership.
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“We are also in the midst of refreshing two other stores in our Company-owned portfolio and expect those to be completed this summer.”
The US chain has reported total revenue of $14.19m for the first quarter (Q1) ending 31 March, a 10.5% increase compared to $12.84m for the same period the prior year.
The growth was driven primarily by the acquisition of four Famous Dave’s stores in Colorado and an increase in comparable sales by 1.3% during the quarter.
It was partially offset by a 1.1% decline in franchise-operated comparable sales and the net closure of 13 franchise-operated restaurants since 1 April last year.
Increase in company-owned comparable sales was driven by a 10.2% increase in To-Go division and a 12.6% in Catering division.
Domestic franchise-operated comparable sales of the company for Q1 2019 were flat year-over-year.
The company has reported net income of $82,000, compared to the net income of $1.32m for the same three month period in 2018.