Famous Dave's of America (NASDAQ: DAVE) reported Q3 EPS of ($0.01), $0.04 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $21.9 million versus the consensus estimate of $21.48 million.

Third Quarter 2017 Review

• Total revenue for the third quarter of 2017 was $21.9 million, down 13.7% from the third quarter of 2016. The decrease in Company-owned net restaurant sales revenue was primarily driven by the closure of twelve restaurants since the end of the third quarter of fiscal 2016, including seven in the third quarter of fiscal 2017, partially offset by a 0.9% increase in comparable sales. The declines in franchise royalty and fee revenue were driven by the net closure of ten franchise restaurants since the end of the third quarter of fiscal 2016 and a comparable sales decline of 2.1%.
• Restaurant-level operating margin for Company-owned restaurants was 7.0%, an increase from 3.8% in the third quarter of fiscal 2016. The increase was primarily driven by lower occupancy costs, the timing of advertising spend, and improved actual versus theoretical food cost, partially offset by increased fixed labor and other operating costs.
• General and administrative expenses decreased to $3.8 million from $4.4 million in the third quarter of 2016. The year over year decline was primarily a result of the continued optimization of our general and administrative structure, a decline in professional fees and reduced costs incurred for franchise-related matters. These decreases were partially offset by bad debts expense recognized for a previously struggling franchisee.
• Net loss from continuing operations was a loss of $1.8 million, or ($0.26) per share, compared to a net loss of $2.4 million, or ($0.34) per share, in the third quarter of 2016. In the third quarter of 2017, we recorded $2.4 million of asset impairment, estimated lease termination and other closing costs primarily related to our restaurant optimization plan, including seven closed Company-owned restaurants.
• Adjusted net loss from continuing operations, a non-GAAP measure, was a loss of approximately $60,000, or ($0.01) per share, compared to income of approximately $150,000, or $0.02 per share, in the third quarter of 2016. A reconciliation between adjusted net income and its most directly comparable GAAP measure is included in the accompanying financial tables.
• Refranchising and Restaurant Optimization Plan

For earnings history and earnings-related data on Famous Dave's of America (DAVE) click here.