Famous Dave's of America posted first-quarter profits of just $62,000, a 92 percent drop compared with $817,000 a year ago, Twin Cities Business reports.
Revenue at the Minnetonka-based barbecue restaurant chain fell to $36.6 million from $37.5 million during the same three month period in 2012.
Administrative costs totaled $5 million, up about 12 percent, which stemmed mostly from a $325,000 jump in compensation-related to the reorganized CEO and chief operating officer positions, the Star Tribune reports.
“Our first-quarter sales, royalties, and franchise fee results were disappointing, which led to poor [earnings] results,” CEO John Gilbert III said in a news release. "Over the past six months, we've developed a strategic framework for performance improvement, tested a number of smart, innovative tactics that have proven successful, and launched the best of these tactics in our company restaurants."
Gilbert, a board member, was named Famous Dave's new chief executive officer last October. He replaced Christopher O’Donnell who stayed with the company as president and chief operating officer.
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