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Hi guys,


AP Happy B-day!

As promised, here are my notes on the CC:

Q2 2010 Famous Dave's of America Earnings Conference Call Notes

Chris and Diana on the call.

Seeing some stabilization in business. Pleased with New Jersey acquisition results.

SSS driven by dine-in and to-go. Catering still off. Seeing improvements in Michigan, Arizona, California and Nevada. 40% of franchises are SSS positive.

Benefiting from supply contracts negotiated last year. That is, 3.5% reduction in pork costs – contract extended to December, 2011.

Won “Peoples Choice” award in DC competition – 4th year in a row.

2010 Development front: 8 to 10 new franchises (reduced) and 1 company owned (opened in August) in Maryland, this year. Looking at smaller footprint restaurants – less cap ex costs.

New menu in January, 2011 (1% price increase being targeted in 4th quarter).

New sauce – “Wilbur’s Revenge”.

Store Count at close of 2Q 2010: 52 company-owned; 125 franchised; 177 total

Store Count at close of 2Q 2009: 46 company-owned; 130 franchised; 176 total

Analyst Q’s:

Catering comp 0.2% decline.

Franchisee pipeline: Speaking to new potential franchisees, no deals inked. Existing franchisees talking about growth; financing expensive but is there. Solution is to go with lower footprint stores, less cap ex.

Cash from ops will continue to be a mix between share repurchases, debt retirement and new company owned.

New Jersey store improvements to continue this year and capex on them normalizing in 2011.

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