BBQ (BBQ) 8-K Results of Operations and Financial Condition

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:	Diana G. Purcel — Chief Financial Officer
	Famous Dave’s of America, Inc.
	952-294-1300
	Famous Dave’s Reports 2005 Net Income of $0.39 Per Diluted Share

     Minneapolis, MN, March 1, 2006 — FAMOUS DAVE’S OF AMERICA, INC.(NASDAQ: DAVE) today announced financial results for the fourth quarter and the fiscal year ended January 1, 2006.

     Highlights for fiscal year 2005 were as follows:

• Earnings were $0.39 per diluted share, which included $0.03 of after-tax expense related to stock-based compensation, and represented an increase of 34.5% over prior year earnings of $0.29 per diluted share.

• Comparable sales for company-owned restaurants increased 2.1% over the prior year.

• Total revenue of $102.4 million increased 3.0% over the prior year; fiscal year 2005 was a 52-week period as compared to a 53-week period in the prior year.

• Franchise royalty revenue of $10.4 million increased 41.5% over the prior year.

     The company reported net income of $725,000, or $0.07 per diluted share, including $0.01 of after-tax expense related to stock-based compensation on total revenue of $24.5 million for the fourth quarter ended January 1, 2006. In the prior year comparable period, the company reported net income of $705,000, or $0.06 per diluted share, on total revenue of $25.3 million. The 3.1% decrease in fourth quarter 2005 total revenue as compared to the 2004 comparable period is primarily due to the fact that fourth quarter 2005 was a 13-week period as compared to a 14-week period in the prior year. Franchise royalty revenue of $2.7 million increased 30.4% over the prior year. For the 2005 fourth quarter, net sales for restaurants open for 18 months or more increased 2.8%, compared with an increase of 4.0% for the 2004 fourth quarter.

     For the fiscal year ended January 1, 2006, Famous Dave’s reported net income of $4.4 million, or $0.39 per diluted share, on total revenue of $102.4 million. In comparison, in fiscal 2004, the company reported net income of $3.5 million, or $0.29 per diluted share, on total revenue of $99.3 million. Fiscal 2005 was a 52-week period while fiscal 2004 was a 53-week period. The 3.0% increase in total revenue and 34.5% increase in earnings per share in fiscal 2005 over fiscal 2004 reflects a 41.5% increase in franchise royalty revenue and the repurchase of 954,900 common shares during 2005. For the year ended January 1, 2006, net sales for restaurants open year-round for 18 months or more increased 2.1% compared with an increase of 1.1% in 2004, as calculated on a 52-week basis.

     “Improved financial performance has been a stated priority at Famous Dave’s, and our strong results for 2005 demonstrate that we are on the right track,” said David Goronkin, President and Chief Executive Officer of Famous Dave’s. Goronkin noted that 2005 was the second consecutive year of increased comparable store sales, total revenue and net income.

     Factors that contributed to the increases included franchise revenue growth, the company’s second year of television advertising, successful limited-time offers and continued growth in TO GO and catering

revenue. The company incurred higher general and administrative costs in 2005 due to investments in infrastructure and stock-based compensation expenses. The earnings results for the fourth quarter of 2005 included approximately $113,000, or $0.01 per diluted share, in compensation expense as related to the company’s stock-based incentive programs, while the twelve months of fiscal 2005 included compensation expense of approximately $566,000, or $0.03, per diluted share. In comparison, earnings results for the prior year fourth quarter and fiscal year 2004 included compensation expense related to the company’s stock based incentive programs of approximately $130,000 and $211,000, respectively. “In a year of extensive growth for our franchise system, we were pleased to have effectively managed restaurant-level costs to achieve our financial results,” said Goronkin.

     Goronkin added, “We continue to make great strides in establishing Famous Dave’s as the category-defining brand in barbeque. In 2006, we will continue to add new markets through on-going franchise development and will bolster our existing markets as we resume the opening of company-owned restaurants. We are very excited about the growth prospects made possible by our strengthened infrastructure and our strategic focus.”

     Famous Dave’s opened seven franchise-operated restaurants during the fourth quarter, and ended the year with a system-wide total of 126 restaurants, including 38 company-owned restaurants and 88 franchise-operated restaurants in 32 states. In January 2006, Famous Dave’s opened a company-owned restaurant in Chantilly, Virginia. This is the first company-owned restaurant opening since early 2003, and it incorporates Famous Dave’s new Smokehouse prototype design elements. During 2006, Famous Dave’s anticipates opening 25 – 30 franchise-operated restaurants and up to three company-owned restaurants. Famous Dave’s had signed development agreements in place to open an additional 196 franchise-operated locations as of January 1, 2006.

     The company is hosting a conference call tomorrow, March 2, 2006, at 10:00 a.m. Central Time to discuss its fourth quarter and fiscal year end 2005 financial results, and invites all those interested in hearing management’s discussion of the quarter to join the conference call by dialing 800-374-1553, conference ID 4883001. A replay will be available for one week following the call by dialing 800-642-1687, conference ID 4883001. Participants may also access a live webcast of the discussion through the Investor Relations section of Famous Dave’s web site atwww.famousdaves.com.

     About Famous Dave’s.Famous Dave’s of America, Inc. (NASDAQ:DAVE) develops, owns, operates and franchises barbeque restaurants. As of March 1, 2006, the company owned 40 locations and franchised 88 additional restaurants in 33 states and had signed development agreements for an additional 193 franchised locations. Its menu features award-winning barbequed and grilled meats, an ample selection of salads, side items and sandwiches, and unique desserts. For more information, contact Diana G. Purcel – Chief Financial Officer, at (952) 294-1300.

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($’s in thousands, except share and per share data)
(unaudited)

	Three Months Ended						Twelve Months Ended
	January 1,			January 2,			January 1,			January 2,
	2006			2005			2006			2005
	(13 weeks)			(14 weeks)			(52 weeks)			(53 weeks)
Revenue:
Restaurant sales, net	$	21,096		$	22,120		$	89,248		$	89,176
Franchise royalty revenue		2,724			2,089			10,406			7,353
Franchise fee revenue		460			629			1,595			1,977
Licensing and other revenue		244			469			1,105			819
Total revenue		24,524			25,307			102,354			99,325
Costs and expenses:
Food and beverage costs		6,409			7,003			27,297			27,995
Labor and benefits		6,308			6,868			26,151			26,472
Operating expenses		5,874			5,668			22,339			22,005
General and administrative		3,182			3,138			13,430			10,939
Total depreciation and amortization		1,090			1,243			4,359			4,549
Pre-opening expenses		96			—			96			—
Total costs and expenses		22,959			23,920			93,672			91,960
Income from operations		1,565			1,387			8,682			7,365
Other income (expense):
Interest expense		(614	)		(440	)		(1,932	)		(1,901	)
Interest income		65			100			270			326
Other income (expense), net		159			(232	)		71			(392	)
Total other expense		(390	)		(572	)		(1,591	)		(1,967	)
Income before income taxes		1,175			815			7,091			5,398
Income tax expense		(450	)		(110	)		(2,700	)		(1,900	)
Net income	$	725		$	705		$	4,391		$	3,498
Basic net income per common share	$	0.07		$	0.06		$	0.41		$	0.29
Diluted net income per common share	$	0.07		$	0.06		$	0.39		$	0.29
Weighted average common shares outstanding — basic		10,586			11,344			10,825			11,858
Weighted average common shares outstanding — diluted		10,910			11,722			11,173			12,222

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
RESTAURANT OPERATING RESULTS AS A % OF NET RESTAURANT SALES
(unaudited)

	Three Months Ended						Twelve Months Ended
	January 1,			January 2,			January 1,			January 2,
	2006			2005			2006			2005
	(13 weeks)			(14 weeks)			(52 weeks)			(53 weeks)
Food and beverage costs		30.4	%		31.7	%		30.6	%		31.4	%
Labor and benefits		29.9	%		31.0	%		29.3	%		29.7	%
Operating expenses		27.8	%		25.6	%		25.0	%		24.7	%
Depreciation & amortization		4.6	%		5.1	%		4.4	%		4.7	%
Pre-opening expenses		0.4	%		—			0.1	%		—
Total costs and expenses		93.1	%		93.4	%		89.4	%		90.5	%
Income from restaurant operations		6.9	%		6.6	%		10.6	%		9.5	%

FAMOUS DAVE’S OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
JANUARY 1, 2006 AND JANUARY 2, 2005
(in thousands)

	January 1,		January 2,
	2006		2005
ASSETS
Current assets	$	15,494	$	19,768
Property, equipment and leasehold improvements, net		46,872		44,664
Other assets		5,232		7,481
Total assets	$	67,598	$	71,913
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities	$	10,043	$	8,817
Long-term obligations		20,376		19,753
Shareholders’ equity		37,179		43,343
Total liabilities and shareholders’ equity	$	67,598	$	71,913

SUPPLEMENTAL SALES INFORMATION
(unaudited)

	Three Months Ended						Twelve Months Ended
	January 1,			January 2,			January 1,			January 2,
	2006			2005			2006			2005
	(13 weeks)			(14 weeks)			(52 weeks)			(53 weeks)
Weighted average weekly net sales:
Company-Owned	$	42,608		$	41,595		$	45,072		$	44,164
Franchise-Owned	$	51,978		$	49,949		$	55,011		$	51,538
Comparable net sales:
Company-Owned		2.8	%		4.0	%		2.1	%		1.1	%
Franchise-Owned		(3.5	)%		(0.9	)%		(1.6	)%		(1.9	)%
Total number of restaurants:
Company-Owned		38			38			38			38
Franchise-Owned		88			66			88			66
Total		126			104			126			104

     Statements in this press release that are not strictly historical, including but not limited to statements regarding the timing of our restaurant openings and the timing or success of our expansion plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, which may cause the company’s actual results to differ materially from expected results. Although Famous Dave’s of America, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Famous Dave’s expectations include financial performance, restaurant industry conditions, execution of restaurant development and construction programs, franchisee performance, changes in local or national economic conditions, availability of financing, governmental approvals and other risks detailed from time to time in the company’s SEC reports.