Famous Dave's of America: Stable Growth in a Niche Market

A Boston presenter likes Famous Dave's of America (NASDAQ: DAVE, $10.56). This casual-dining chain specializes in BBQ dishes served in a unique, live-music accompanied setting. Over 70% of all stores are franchised, with 90 more units projected in the next 5 years. The company is rolling out a number of initiatives to boost same store sales. DAVE generates healthy cash flow. The stock is trading at multiples below its historical averages and versus the peer group. The company has been buying back shares and just last December announced another authorization for more than 10% of all shares outstanding. The Street's coverage is very limited.