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$4.60 0.41 (9.79%)
10/13/2008 4:00 PM

Famous Dave's of America, Inc. (DAVE)

CAPS Rating:
*****

The Company develops, owns, operates and franchise restaurants.

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3

Avatar JMJeffrey (88.99) Submitted: 3/10/08 10:08 AM : Outperform Start Price: $10.01 DAVE Score: -23.62

Belly up for some branded BBQ! Famous Dave's is right now on the cusp of a regional restaurant chain going national and it is selling today at a cheap price. The food is different (not exactly healthy) enough to have its own niche with all the sit down Italian, Asian and Mexican joints. Pretty all-American food (for better or for worse) which has a pretty wide following in the heartland of the US. The recent BBQ craze won't hurt it either and should provide good opportunities for brand development and entry into new regions. I really like Dave's catering and carry-out options which I suspect will continue to help when people budgets are tighter. Fears about rising commodity prices cutting margins, declining revenue from franchises and the lack of a CEO have butchered this little piggy. More may yet be shed but I believe that from this little piggy is going to whup the market. Betting with my belly on this one. Slather a little Georgia Mustard on top and you have an outperform!

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Avatar valleyguy81 (< 20) Submitted: 7/01/08 5:20 PM

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For a stock that everyone's in love with it sure is going in the tank. Does anyone think this thing is gonna turn around? I bought in at $9 and am now wondering whether to cut my losses or not.

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Avatar JMJeffrey (88.99) Submitted: 7/20/08 9:56 PM

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Hi Valleyguy81,

I do think this stock is going to turn around but the market seems to think nobody is eating out any more and higher commodity prices will hurt DAVE's margins more than say Buffalo WIld Wings. I like the new CEO at face value and think he will bring leadership to help solve some of the nagging problems (franchise/company-owned stores) that have hindered this company's growth and popularity with investors. I got in around $9 too and thought it was a great entry price. I'd give it more time (easier said than done... ;-)

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