Famous Dave’s of America Inc. CEO Ed Rensi has stepped down, effective immediately, the company said Thursday, less than 18 months after his arrival generated excitement at the Minneapolis-based company.
The company did not provide a reason for Rensi’s departure. Adam Wright, an activist investor who won a board seat in 2013, has been named interim CEO while Famous Dave’s searches for a permanent replacement.
“We recognize Ed’s continuing contributions to Famous Dave’s and, in particular, his willingness to provide his valuable leadership and experience to the company during a period of transition,” Famous Dave’s chairman David J. Mastrocola said in a statement. “Our priority is now to identify a leader who can drive the next stage of Famous Dave’s innovation and growth.”
Famous Dave’s is working with Heidrick & Struggles Inc., an executive search firm, to find a replacement.
Rensi’s departure continues what has been a revolving door at the 184-unit casual-dining barbecue chain over the years. Rensi was initially named interim CEO in February 2014, and later became permanent chief executive. His predecessor, John Gilbert, resigned from the CEO role less than 18 months after taking the job, in October 2012.
Rensi, a former McDonald’s Corp. executive, was the fifth CEO at Famous Dave’s since David Goronkin left the company in 2007. Rensi was given a seat on the board in January 2014, and his arrival as CEO coincided with major changes to the board and company management, after activist investors won seats on the board. A number of executives and board members left the company last year.
Rensi’s arrival generated excitement over Famous Dave’s among investors, who thought his background at McDonald’s would revitalize the struggling concept.
Famous Dave’s stock skyrocketed 120 percent in the months after Rensi’s arrival, and maintained that level for several months. But since February, its stock has fallen 39 percent, returning most of those gains. The stock fell an additional 10 percent in early trading Thursday.
Famous Dave’s profit during the first quarter ended March 29 plunged 62 percent. Same-store sales at corporate restaurants fell 4.9 percent, as the chain shifted away from the discounts and coupons that had driven traffic in recent years.
Franchisees, who own 134 of the chain’s 184 locations, fared better, with franchised same-store sales declining 0.1 percent during the quarter.
Contact Jonathan Maze at [email protected].
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