<PAGE>   1



                     U.S. SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB




    [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
                                  Act of 1934

                   For the quarterly period ended July 4, 1999

    [ ] Transition report under Section 13 or 15(d) of the Exchange Act

    For the transition period from ____________________ to _________________

                         Commission file number 0-21625



                         FAMOUS DAVE'S OF AMERICA, INC.
        (Exact Name of Small Business Issuer as Specified in Its Charter)



             Minnesota                                 41-1782300
  (State or other Jurisdiction of         (I.R.S. Employer Identification No.)
   Incorporation or Organization)


                   7657 Anagram Drive, Eden Prairie, MN 55344
                    (Address of Principal Executive Offices)
                                 (612) 294-1300
                (Issuer's Telephone Number, Including Area Code)


      (Former Name, Former Address and Former Fiscal Year, If Changed Since
                                  Last Report)



         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

                                  Yes  X  No
                                      ---   ---

    At August 16, 1999 there were 8,842,590 shares of common stock, $.01 par
                              value, outstanding.

           Transitional Small Business Disclosure Format (check one):

                                  Yes     No X
                                      ---   ---




                                       1
<PAGE>   2





                         FAMOUS DAVE'S OF AMERICA, INC.
                                Form 10-QSB Index
                                  July 4, 1999


<TABLE>
<CAPTION>
                                                                                               Page Number
                                                                                               -----------
<S>                                                                                            <C>
PART I      FINANCIAL INFORMATION

            Item 1.  Financial Statements

            Condensed Consolidated Balance Sheets -                                                 3
             July 4, 1999 and January 3, 1999

            Condensed Consolidated Statements of Operations -                                       4
              For the thirteen weeks ended July 4, 1999 and June 28, 1998
             and for the twenty-six weeks ended July 4, 1999 and June 28, 1998

            Condensed Consolidated Statements of Cash Flows -                                       5
              For the twenty-six weeks ended July 4, 1999 and June 28, 1998

            Notes to Condensed Consolidated Financial Statements                                    6

            Item 2.   Management's Discussion and Analysis of                                       9
            Financial Condition and Results of Operations

PART II     OTHER INFORMATION

            Items 1, 4, 5 and 6.                                                                    14

            Signatures                                                                              15
</TABLE>


                                       2
<PAGE>   3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                               JULY 4,                             JANUARY 3,
                                                                                 1999                                 1999
                                                                            --------------                       -------------
                                                                             (UNAUDITED)
                          ASSETS
<S>                                                                         <C>                                  <C>
CURRENT ASSETS:
  Cash and cash equivalents                                                 $     717,000                         $  1,951,000
  Securities available-for-sale                                                 1,517,000                            1,624,000
  Inventories                                                                   1,081,000                              908,000
  Prepaids and other current assets                                               944,000                              824,000
                                                                            --------------                       -------------
     Total current assets                                                       4,259,000                            5,307,000

PROPERTY, EQUIPMENT AND LEASEHOLD
   IMPROVEMENTS, NET                                                           38,931,000                           35,576,000

OTHER ASSETS - DEPOSITS                                                           332,000                              286,000
                                                                            --------------                       -------------

                                                                            $  43,522,000                         $ 41,169,000
                                                                            ==============                       =============

                  LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                                                          $   1,799,000                         $  4,173,000
  Current portion of capital lease obligations                                    410,000                              403,000
  Note payable                                                                  1,675,000                              683,000
  Other current liabilities                                                     1,841,000                            1,837,000
                                                                            --------------                       -------------
     Total current liabilities                                                  5,725,000                            7,096,000

NOTE PAYABLE - LONG TERM                                                        4,500,000                                    0

CAPITAL LEASE OBLIGATIONS, NET OF CURRENT PORTION                                 828,000                            1,000,000
                                                                            --------------                       -------------
     Total liabilities                                                         11,053,000                            8,096,000
                                                                            --------------                       -------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
  Common stock, $.01 par value, 100,000,000 shares authorized,
    8,842,590 and 8,837,590 shares issued and outstanding                          88,000                               88,000
  Additional paid-in capital                                                   42,726,000                           42,721,000
  Accumulated deficit                                                         (10,345,000)                          (9,736,000)
                                                                            --------------                       -------------
     Total shareholders' equity                                                32,469,000                           33,073,000
                                                                            --------------                       -------------
                                                                            $  43,522,000                         $ 41,169,000
                                                                            ==============                       =============
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                        3


<PAGE>   4

                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



<TABLE>
<CAPTION>
                                                 THIRTEEN WEEKS ENDED           TWENTY-SIX WEEKS ENDED
                                             ----------------------------   -----------------------------
                                                JULY 4,        JUNE 28,         JULY 4,         JUNE 28,
                                                 1999            1998            1999             1998
                                             ------------    ------------   -------------    ------------
                                              (UNAUDITED)     (UNAUDITED)     (UNAUDITED)     (UNAUDITED)



<S>                                          <C>             <C>             <C>             <C>
REVENUES, NET                                $ 12,631,000    $ 10,925,000    $ 23,019,000    $ 18,659,000
                                             ------------    ------------    ------------    ------------

COSTS AND EXPENSES:
  Food and beverage costs                       4,398,000       3,955,000       7,944,000       6,687,000
  Labor and benefits                            3,547,000       2,909,000       6,471,000       5,065,000
  Operating expenses                            2,883,000       2,149,000       5,399,000       4,035,000
  Depreciation and amortization                   693,000         557,000       1,302,000         994,000
  Pre-opening expenses                            338,000         399,000         442,000         909,000
  General and administrative                    1,031,000       1,324,000       2,033,000       4,144,000
  Reserve for loss on closed sites                      0               0               0       1,589,000
                                             ------------    ------------    ------------    ------------
     Total costs and expenses                  12,890,000      11,293,000      23,591,000      23,423,000
                                             ------------    ------------    ------------    ------------

LOSS FROM OPERATIONS                             (259,000)       (368,000)       (572,000)     (4,764,000)

  Interest and other income (expense), net        (33,000)         58,000         (37,000)        194,000
                                             ------------    ------------    ------------    ------------

NET LOSS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE                   (292,000)       (310,000)       (609,000)     (4,570,000)
                                             ------------    ------------    ------------    ------------

CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE                                    0               0               0        (120,000)
                                             ------------    ------------    ------------    ------------

NET LOSS                                     $   (292,000)   $   (310,000)   $   (609,000)   $ (4,690,000)
                                             ============    ============    ============    ============

BASIC AND DILUTED NET LOSS PER COMMON
SHARE BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE               $      (0.03)   $      (0.04)   $      (0.07)   $      (0.52)
                                             ============    ============    ============    ============

BASIC AND DILUTED NET LOSS PER
COMMON SHARE                                 $      (0.03)   $      (0.04)   $      (0.07)   $      (0.53)
                                             ============    ============    ============    ============


WEIGHTED AVERAGE COMMON SHARES
   OUTSTANDING                                  8,838,524       8,827,590       8,838,057       8,794,332
                                             ============    ============    ============    ============
</TABLE>


     See accompanying notes to condensed consolidated financial statements.


                                        4


<PAGE>   5


                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                            TWENTY-SIX WEEKS ENDED
                                                               --------------------------------------------------
                                                                      JULY 4,                    JUNE 28,
                                                                       1999                        1998
                                                               -----------------------   ------------------------
                                                                    (UNAUDITED)                (UNAUDITED)
<S>                                                            <C>                       <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss                                                       $             (609,000)   $            (4,690,000)
Adjustments to reconcile net loss to
cash flows from operating activities:
  Depreciation and amortization                                             1,460,000                  1,175,000
  Reserve for loss on closed sites                                            (57,000)                 1,589,000
  Write-off of certain other non-operating assets                                   0                    679,000
  Changes in working capital items -
      Inventories                                                            (173,000)                  (225,000)
      Prepaids and other current assets                                      (120,000)                    64,000
      Other assets - deposits                                                 (46,000)                  (152,000)
      Accounts payable                                                     (2,374,000)                (2,244,000)
      Other current liabilities                                                 4,000                   (103,000)
                                                               -----------------------   ------------------------
         Cash flows from operating activities                              (1,915,000)                (3,907,000)
                                                               -----------------------   ------------------------

CASH FLOWS FROM
   INVESTING ACTIVITIES:
Purchase of available-for-sale securities                                     (17,000)                (9,053,000)
Proceeds from available-for-sale securities                                   124,000                 16,386,000
Purchase of property, equipment
  and leasehold improvements                                               (4,758,000)                (7,995,000)
                                                               -----------------------   ------------------------
         Cash flows from investing activities                              (4,651,000)                  (662,000)
                                                               -----------------------   ------------------------

CASH FLOWS FROM
   FINANCING ACTIVITIES:
Payments on capital lease obligations                                        (165,000)                  (175,000)
Proceeds from exercise of stock options                                         5,000                    784,000
Advances on notes payable                                                   7,775,000                          0
Payments on note payable                                                   (2,283,000)                         0
                                                               -----------------------   ------------------------
         Cash flows from financing activities                               5,332,000                    609,000
                                                               -----------------------   ------------------------

DECREASE IN CASH
  AND CASH EQUIVALENTS                                                     (1,234,000)                (3,960,000)

CASH AND CASH EQUIVALENTS,
  BEGINNING OF PERIOD                                                       1,951,000                  7,984,000
                                                               -----------------------   ------------------------

CASH AND CASH EQUIVALENTS,
   END OF PERIOD                                               $              717,000    $             4,024,000
                                                               =======================   ========================
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                        5
<PAGE>   6



                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  JULY 4, 1999
                                   (UNAUDITED)

(1)   GENERAL

Famous Dave's of America, Inc. ("Famous Dave's") currently operates twenty-three
restaurants under the name "Famous Dave's" in the Midwestern region of the
United States. Our restaurants, the majority of which offer full table service,
feature hickory smoked off-the-grill meat entree favorites served in one of our
three casual formats: a "Northwoods" style lodge, a nostalgic roadhouse "shack",
or a Blues Club featuring nightly musical entertainment. We seek to
differentiate ourselves by providing high quality food in these distinctive and
comfortable environments. As of July 4, 1999 we operated twenty-three
restaurants with one additional unit in development, a lodge in Lincoln,
Nebraska. As of June 28, 1998 we operated nineteen restaurants, with an
additional four units in development.

(2)   BASIS OF FINANCIAL STATEMENT PRESENTATION

    The accompanying unaudited condensed financial statements have been prepared
by us following the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations. Although we believe that the disclosures are adequate to make the
information presented not misleading, it is suggested that these interim
condensed financial statements be read in conjunction with our most recent
audited financial statements and notes thereto included in our Annual Report on
Form 10-KSB for the fiscal year ended January 3, 1999. In our opinion, all
adjustments (which include only normal recurring adjustments) necessary for a
fair presentation of the financial position, results of operations and cash
flows for the interim periods presented have been made. Operating results for
the thirteen and twenty-six week periods ended July 4, 1999 are not necessarily
indicative of the results that may be expected for the fiscal year ending
January 2, 2000.

Certain amounts in the fiscal 1998 financial statements have been reclassified
to conform to the fiscal 1999 presentation with no impact on previously reported
net loss or shareholders' equity.



(3)   INCOME (LOSS) PER COMMON SHARE

     Basic earnings (loss) per share (EPS) is computed by dividing net
income (loss) by the weighted average number of common shares outstanding during
the quarter. Diluted EPS is computed by dividing net income(loss) by the
weighted average common shares outstanding and dilutive common equivalent shares
assumed to be outstanding during each period. Dilutive common equivalent shares
have not been included in the computation of diluted EPS because their inclusion
would be anti-dilutive. Anti-dilutive common equivalent shares issuable based on
future exercise of stock options or warrants could potentially dilute basic EPS
in subsequent years.

(4) INCOME FROM FRANCHISEES

    In 1998, we entered into a franchise agreement with two former employees.
This agreement provides that in exchange for the payment of certain fees, the
franchisee may open up to three units under the Famous Dave's brand, along with
receiving other benefits. The revenue generated by this arrangement is not
recognized until the franchised restaurant is open and the Company has provided
all services. At July 4, 1999, there was one unit open under this franchise
agreement.



                                       6
<PAGE>   7



                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                  JULY 4, 1999
                                   (UNAUDITED)


(5) PRE-OPENING COSTS

    In 1998, the Accounting Standards Executive Committee of the American
Institute of Certified Public Accountants issued Statement of Position 98-5
("SOP 98-5") entitled "Reporting on the Costs of Start-Up Activities." This
accounting standard requires entities to expense as incurred all start-up and
pre-opening costs that are not otherwise capitalizable as long-lived assets.
This new accounting standard is effective for fiscal years beginning after
December 15, 1998 with early adoption encouraged. We elected to adopt SOP 98-5
in fiscal 1998. The cumulative effect of this change in accounting principle was
$120,000 and was reflected in the quarter ended March 29, 1998. Prior to the
adoption of SOP 98-5, we deferred pre-opening costs until the month the related
unit opened and either charged such costs to expense in the month the restaurant
opened or, in certain cases prior to March 31, 1997, amortized such costs over a
period no longer than 12-months following the opening of the restaurant.

(6) SEVERANCE AND RESTRUCTURING

    In March 1998, we recorded a provision totaling $1,146,000 for severance and
restructuring. This amount includes severance costs, real estate costs and a
provision for write-off of a discontinued point-of-sale system.

(7) PROVISION FOR LOSS ON RESTAURANTS TO BE DISPOSED

    In March 1998, we implemented a plan to close two restaurants. As part of
this plan, we have recorded a provision of $1,589,000 to reduce the carrying
value of the assets related to these restaurants to their estimated net
realizable value.

(8) RELATED PARTY TRANSACTIONS

      S&D LAND HOLDINGS, INC. - We lease the real estate for four of our units
from S&D Land Holdings, Inc., a company wholly owned by the Company's founding
Shareholder.

(9) INCOME TAXES

    The Company was an S Corporation through March 3, 1996. Accordingly, losses
incurred through March 3, 1996 have been recognized by the Company's founding
shareholder. From March 4, 1996 through January 3, 1999, we generated a net
operating loss of approximately $9,736,000 which, if not used, will begin to
expire in 2011. During the twenty-six weeks ended July 4, 1999, an additional
net operating loss of approximately $609,000 was generated which, if not used,
will expire in 2014. Future changes in ownership may place limitations on the
use of these net operating loss carry-forwards. We have recorded a full
valuation allowance against the deferred tax asset due to the uncertainty of
realizing the related benefit.

(10) NOTE PAYABLE

On March 31, 1999 we completed a sale-leaseback transaction involving three of
our existing units that provided net proceeds of approximately $4.4 million.
Under this financing we are obligated to make monthly payments of $41,250 for a
minimum of twenty years.




                                       7
<PAGE>   8



                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                  JULY 4, 1999
                                   (UNAUDITED)


(11) COMMITMENTS AND CONTINGENCIES

Construction and development contracts

   In conjunction with our expansion activity, we enter into fixed price
construction contracts from time to time. At July 4, 1999, we had a commitment
outstanding under one contract for construction of a Blues Club in Chicago. As
of July 4, 1999, the balance remaining to be paid under this contract was
approximately $225,000.

   We have entered into a contract with a national real estate services firm to
provide real estate development and construction management services for the
development of a minimum of six restaurants in the future. The estimated
remaining commitment under this contract was $87,000 at July 4, 1999.

Other

   At July 4, 1999, we had an irrevocable letter of credit outstanding for a
total of $1,500,000 expiring September 1999 related to the Blues Club under
construction in Chicago. This letter of credit is fully secured by a certificate
of deposit.



                                       8
<PAGE>   9



ITEM 2.
                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

    The business of Famous Dave's of America, Inc. is to develop, own and
operate casual dining restaurants under the name "Famous Dave's." As of July 4,
1999 we owned and operated twenty-three restaurants: fourteen in Minnesota, four
in Wisconsin, three in Iowa and two in Illinois. In addition, there was one
restaurant operating in Minnesota under a franchise agreement.

    Famous Dave's was formed in March 1994 and we opened our first restaurant in
the Linden Hills neighborhood of Minneapolis in June 1995. We currently operate
three lodge restaurants featuring barbecue entrees, a rustic Northwoods decor
and big band music. In addition, we operate seventeen nostalgic roadhouse
barbecue shacks of which ten have been opened as, or converted to, a full
service format that resembles the Lodge concept. We also operate two Blues Clubs
(featuring authentic Chicago Blues Club decor and live music seven nights a
week) and a Take-Out and Catering facility. All of the our restaurants feature
similar menu items, consistent preparation methods and uniform kitchen layouts.

    Future revenues and profits, if any, will depend upon various factors,
including continued market acceptance of the Famous Dave's concept, the quality
of our restaurant operations, our ability to successfully expand into new
markets, our ability to raise additional financing as needed and general
economic conditions. There can be no assurances that we will successfully
implement our expansion plans, in which case we will continue to be dependent on
the revenues from existing operations. We also face all of the risks, expenses
and difficulties frequently encountered in connection with the expansion and
development of an expanding business. Furthermore, to the extent that our
expansion strategy is successful, we must manage the transition to multiple-site
and higher-volume operations, the control of overhead expenses and the addition
of necessary personnel.

    Components of operating expenses include operating payroll and fringe
benefits, occupancy costs, repair and maintenance, and advertising and
promotion. Certain of these costs are variable and will fluctuate as sales
fluctuate. The primary fixed costs are corporate and restaurant management and
occupancy costs. Our experience is that when a new restaurant opens, it incurs
higher than normal levels of labor and food costs until operations stabilize,
usually during the first three months of operation. We believe, however, that as
restaurant management and staff gain experience, labor scheduling, food cost
management and operating expense control are improved to levels similar to those
at our more established restaurants.

    General and administrative expenses include all corporate and administrative
functions that serve to support existing operations and provide an
infrastructure to support future growth. Management, supervisory and staff
salaries, employee benefits, travel, rent, depreciation, general insurance and
marketing expenses are major items in this category.

      The following discussion and analysis of financial condition and results
of operations should be read in conjunction with the accompanying unaudited
condensed consolidated financial statements and notes thereto and the audited
consolidated financial statements and notes thereto included in the Company's
Form 10-KSB for the fiscal year ended January 3, 1999.





                                       9
<PAGE>   10



                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Our overall operating results expressed as a percentage of net revenue were as
follows:

<TABLE>
<CAPTION>
                                                         THIRTEEN WEEKS ENDED         TWENTY-SIX WEEKS ENDED
                                                        July 4,      June 28,        July 4,       June 28,
                                                          1999         1998           1999           1998
                                                       (unaudited)   (unaudited)    (unaudited)    (unaudited)
                                                      ------------- -------------  ------------  ---------------
                                                         100.0%        100.0%        100.0%          100.0%
                                                      ------------- -------------  ------------  ---------------

<S>                                                   <C>           <C>            <C>           <C>
REVENUES, NET
UNIT-LEVEL COSTS AND EXPENSES:

  Food and beverage costs                                34.8%         36.2%          34.5%          35.8%
  Labor and benefits                                     28.1%         26.6%          28.1%          27.1%
  Operating expenses                                     22.8%         19.6%          23.5%          21.7%
  Depreciation and amortization                           5.5%          5.1%           5.7%           5.3%
  Pre-opening expenses                                    2.7%          3.7%           1.9%           4.9%
                                                      ------------- -------------  ------------  ---------------
     Total costs and expenses                            93.9%         91.2%          93.7%          94.8%
                                                      ------------- -------------  ------------  ---------------

INCOME FROM UNIT-LEVEL OPERATIONS                         6.1%          8.8%          6.3%            5.2%

  General and administrative                              8.2%         12.1%          8.8%           22.2%
  Provision for loss on restaurants to be disposed        0.0%          0.0%          0.0%            8.5%
                                                      ------------- -------------  ------------  ---------------

LOSS FROM OPERATIONS                                     (2.1%)        (3.3%)        (2.5%)         (25.5%)

  Interest and other income, net                         (0.2%)         0.5%         (0.2%)           1.0%
NET LOSS BEFORE CUMULATIVE EFFECT OF CHANGE IN
    ACCOUNTING PRINCIPLE                                 (2.3%)        (2.8%)        (2.7%)         (24.5%)
                                                      ------------- -------------  ------------  ---------------

  Cumulative effect of change in accounting
principle                                                 0.0%          0.0%          0.0%           (0.6%)
                                                      ------------- -------------  ------------  ---------------

NET LOSS                                                 (2.3%)        (2.8%)        (2.7%)         (25.1%)
                                                      ------------- -------------  ------------  ---------------
</TABLE>


REVENUE, NET
    Net revenue for the thirteen weeks ended July 4, 1999 was $12,631,000
compared to $10,925,000 for the same period in 1998, a 16% increase. The
increase in net revenue is primarily due to the addition of four restaurants
opened during the four quarters subsequent to June 28, 1998, an increase in
retail and other non-restaurant revenue, and an increase in same store sales.
For the twenty-six weeks ended July 4, 1999 net revenue was $23,019,000, an
increase of 23% over the same period in 1998 of $18,659,000. The Company has
eight restaurants that have been open for more than eighteen months. Strong
marketing efforts have resulted in an increase in same store sales of
approximately 3% in the thirteen weeks ended July 4, 1999. This is the first
increase in same store sales in the history of our company and is an improvement
in comparable store sales performance from last year's decline of approximately
17%.

FOOD AND BEVERAGE COSTS

    Food and beverage costs for the thirteen weeks ended July 4, 1999 were
$4,398,000 or 34.8% of net revenue, compared to $3,955,000 or 36.2% of net
revenue for the same period in 1998. For the twenty-six weeks ended July 4,
1999, food and beverage costs were $7,944,000 or 34.5%, compared to $6,687,000
or 35.8% for the same period ended June 28, 1998. The decrease in food and
beverage costs as a percent of net revenue was primarily due to increased
revenue and improved purchasing economies, including contract pricing of certain
pork items.



                                       10
<PAGE>   11


                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

LABOR AND BENEFITS

    Labor and benefits for the thirteen weeks ended July 4, 1999 were $3,547,000
or 28.1% of net revenue, compared to $2,909,000 or 26.6% of net revenue for the
same period in 1998. For the twenty-six weeks ended July 4, 1999 labor and
benefits were $6,471,000 or 28.1% compared to $5,065,000 or 27.1% of net revenue
for the same period ended June 28, 1998. Labor costs as a percent of net revenue
are higher in 1999 compared to 1998 due to the introduction of full table
service in several restaurants that were formerly counter service, as well as a
heightened emphasis on training and execution in company restaurants. Full
service restaurants that operate in states without a "tip credit" (such as
Minnesota) experience a higher wage rate for dining room labor. The migration
toward full service dining in most of the Company's restaurants is part of
management's strategy for increasing unit-level sales.

OPERATING EXPENSES

    For the thirteen weeks ended July 4, 1999, operating costs were $2,883,000
or 22.8% of net revenue, compared to $2,149,000 or 19.6% of net revenue for the
same period in 1998. For the twenty-six weeks ended July 4, 1999, operating
costs were $5,399,000 or 23.5% of net revenue compared to $4,035,000 or 21.7%
for the same period ended June 28, 1998. The increase in operating expense is
due to increases in repair and maintenance costs, rent, real estate taxes and
entertainment costs.

DEPRECIATION AND AMORTIZATION

    Unit-level depreciation and amortization for the thirteen weeks ended July
4, 1999 was $693,000 or 5.5% of net revenue compared to $557,000 or 5.1% of net
revenue during the same period in 1998. For the twenty-six weeks ended July 4,
1999, depreciation and amortization costs were $1,302,000 or 5.7% of net revenue
compared to $994,000 or 5.3% for the same period ended June 28, 1998. The
increase in unit-level depreciation and amortization results from higher
construction costs associated with units operating in 1999 compared to those
operating in fiscal 1998.

PRE-OPENING EXPENSES

   Pre-opening expenses were $338,000 or 2.7% of net revenue for the thirteen
weeks ended July 4, 1999 compared to $399,000 or 3.7% of net revenue during the
same period in 1998. For the twenty-six weeks ended July 4, 1999 pre-opening
expenses were $442,000 or 1.9% of net revenue compared to $909,000 or 4.9% for
the same period in 1998. Pre-opening expenses are charged to expense in the
month that they are incurred. Prior to 1998, these expenses were expensed in the
month the restaurant opened or in some cases, deferred and charged to expense
over no longer than a twelve-month period following the opening of the unit. In
the first quarter of fiscal 1998, we took a $120,000 one-time charge against
earnings as a cumulative effect of a change in accounting principle to reflect
this policy change. The 1999 expenses reflect the development of the Chicago
Blues Club, which opened May 3, 1999, compared to the seven units opened in the
same period in 1998 with an additional four units in initial development.

INCOME FROM UNIT-LEVEL OPERATIONS

    Income from unit-level operations totaled $772,000 or 6.1% of net revenue,
for the thirteen weeks ended July 4, 1999, compared to $956,000 or 8.8 % of net
revenue, in the corresponding period of 1998. For the twenty-six weeks ended
July 4, 1999 income from unit-level operations was $1,461,000 or 6.3% of net
revenue compared to $969,000 or 5.2% for the same period ended June 28, 1998.
Income from unit-level operations represents income from operations before
general and administrative expenses. Although income from unit-level operations
should not be considered an alternative to income/loss from operations as a
measure of our operating performance, such unit-level measurement is commonly
used as an additional measure of operating performance in the restaurant
industry and certain related industries. The change in income from unit-level
operations, both in amount and as a percent of revenue, from 1998 to 1999 is
attributable to the increase in net revenue from new units and retail and other
non-restaurant revenue and the other changes in costs and expenses as discussed
above.


                                       11
<PAGE>   12

                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)




GENERAL AND ADMINISTRATIVE EXPENSES

    General and administrative expenses for the thirteen weeks ended July 4,
1999 were $1,031,000 or 8.2% of net revenue, compared to $1,324,000 or 12.1% of
net revenue for the same period in 1998. For the twenty-six weeks ended July 4,
1999, general and administrative expenses were $2,033,000 or 8.8% of net revenue
compared to $4,144,000 or 22.2% for the same period in 1998. The 1998 amount
reflects $1,146,000 in severance and restructuring costs related to the
reduction of the corporate infrastructure taken in the first quarter. The
reduction in general and administrative expenses both in amount and as a percent
of net revenue reflects increased sales and the adjustment of our corporate
infrastructure to a reduced level which we believe is appropriate to support our
current, more controlled plans for expansion.


LOSS FROM OPERATIONS

   Loss from operations totaled $259,000 or 2.1% of net revenue, for the
thirteen weeks ended July 4, 1999 compared to a loss of $368,000 or 3.3% of net
revenue, in the corresponding period in 1998. For the twenty-six weeks ended
July 4, 1999 the loss from operations was $572,000 or 2.5% compared to
$4,764,000 or 25.5% for the twenty-six weeks ended June 28, 1998. The 1998
amount reflects charges of approximately $2.7 million in expenses associated
with a provision for disposition of two restaurants and severance and
restructuring charges which were taken in the first quarter of 1998. The
reduction in losses incurred is primarily attributable to increased income from
retail and other non-restaurant operations and significant reductions in the
level of general and administrative expense.


INTEREST AND OTHER INCOME (EXPENSE), NET

   Interest and other income (expense), net, primarily represents interest
income received from short-term investments offset by interest expense on
capital lease obligations and notes payable. Interest expense was $33,000 or
0.2% for the thirteen weeks ended July 4, 1999 compared to interest income of
$58,000 or 0.5% for same period in 1998. For the twenty-six weeks ended July 4,
1999 interest expense was $37,000 or 0.2% of net revenue compared to interest
income of $194,000 for the same period in 1998. The decrease in income from 1998
to 1999 was primarily due to the reduced level of short-term investments in 1999
and an increase in interest expense on notes payable.


NET LOSS/NET LOSS PER COMMON SHARE

   The net loss for the thirteen weeks ended July 4, 1999 was $292,000, or $.03
per share on 8,838,524 weighted average shares outstanding, compared to a net
loss of $310,000, or $.04 per share on 8,827,590 weighted average shares
outstanding, during the comparable period in 1998. The net loss for the
twenty-six weeks ended July 4, 1999 was $609,000 or $.07 on 8,838,057 weighted
average shares outstanding compared to a loss of $4,690,000 or $.53 on 8,794,332
weighted average shares outstanding for the same period in 1998. The 1998 amount
reflects charges of approximately $2.7 million in expenses associated with a
provision for disposition of two restaurants and severance and restructuring
charges taken in the first quarter of 1998. The decrease in net loss and net
loss per share is attributable to increased income from retail and other
non-restaurant operations and a reduction in general and administrative
expenses.



                                       12
<PAGE>   13

                 FAMOUS DAVE'S OF AMERICA, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

   As of July 4, 1999 we held cash and cash equivalents of approximately
$717,000 compared to $1,951,000 as of January 3, 1999. The decrease in cash and
cash equivalents reflects the use of cash for the purchase and/or development of
property, equipment and leasehold improvements.

   At July 4, 1999 we were party to a credit agreement with a financial
corporation which provides up to a $4.5 million line of credit of which
$1,675,000 is outstanding. This facility is secured by substantially all of our
property, and in addition is guaranteed by and secured by certain assets of our
Chairman, David Anderson. The credit facility matures in April, 2000.

    On March 31, 1999 we completed a sale-leaseback transaction involving three
of our existing units that provided net proceeds of approximately $4.4 million.
Under this financing we are obligated to make monthly payments of $41,250 for a
minimum period of twenty years. Approximately $2.4 million of the proceeds were
used to pay down the existing bank line of credit and the remaining amount was
used to complete the construction of the Chicago Blues Club.

    We anticipate that future development and expansion will be funded primarily
through cash and short-term investments currently held, proceeds from the sale
of additional equity and/or debt securities, and the proceeds from other forms
of financing such as lease financing or other credit facilities. However, there
can be no assurances that additional financing required for expansion will be
available on terms acceptable or favorable to us.


SEASONALITY

    Our units typically generate higher revenues during the second and third
quarters (which are summer months for our locations) than in the first and
fourth quarters (which are winter months) as a result of our concentration of
locations in Minnesota and Wisconsin market areas.



SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

    The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in this
Form 10-QSB and other materials filed or to be filed with the Securities and
Exchange Commission (as well as information included in oral statements or other
written statements made or to be made by us) contain statements that are
forward-looking. A number of important factors could, individually or in the
aggregate, cause actual results to differ materially from those expressed or
implied in any forward-looking statements. Such factors include, but are not
limited to, the following: competition in the casual dining restaurant market;
continued market acceptance of our concept; availability and terms of additional
financing: our ability to open additional restaurants in a timely manner;
consumer spending trends and habits; weather conditions in the regions in which
the we develop and operate restaurants; and laws and regulations affecting labor
and employee benefit costs. For further information regarding these and other
factors, see our Annual Report on Form 10-KSB for the fiscal year ended January
3, 1999.



                                       13
<PAGE>   14


PART II.   OTHER INFORMATION

Item 1.  Legal Proceedings

    The Company is not a party to any material litigation and is not aware of
any threatened litigation that would have a material adverse effect on its
business.

Item 4. Submission of Matters to a Vote of Security Holders

         (a) On June 17, 1999, the Annual Meeting of Shareholders of the Company
(the "Annual Meeting") was held.

         (b) At the Annual Meeting, all of management's nominees for directors
as listed in the proxy statement were elected with the following vote:


<TABLE>
<CAPTION>
                                                       Shares Voted "For"            Shares Voted "Withheld"
                                                ---------------------------------- -----------------------------
<S>                                             <C>                                <C>
       David W. Anderson                                 7,989,968                         62,099
       Thomas J. Brosig                                  7,985,940                         67,024
       Douglas S. Lanham                                 7,985,841                         68,249
       Richard L. Monford                                7,990,240                         61,824
       Martin J. O'Dowd                                  7,985,240                         66,824
</TABLE>


         (c) The Shareholders approved an amendment to the Company's 1995 Stock
    Option and Compensation Plan to increase the number of shares of Common
    Stock reserved for issuance thereunder from 950,000 shares to 1,250,000
    shares. 7,406,359 votes were cast in favor of the amendment; 274,695 votes
    opposed and 371,010 votes abstained.




Item 5.  Other Information

              None

Item 6.  Exhibits and Reports on Form 8-K

         (a)      Exhibits

        10.1  Consulting Agreement dated August 1, 1999 by and between Douglas
              S. Lanham and the Company

        10.2  Employment Agreement dated July 1, 1999 by and between the Company
              and Martin J. O'Dowd

        27    Financial Data Schedule

         (b)      Reports on Form 8-K
         None


                                       14
<PAGE>   15




                                   SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                       FAMOUS DAVE'S OF AMERICA, INC.


                                       /s/ Martin J. O'Dowd
                                       --------------------
                                       Martin J. O'Dowd
                                       President and Chief Executive Officer



                                       /s/ Steven A. Sekely
                                       --------------------
                                       Steven A. Sekely
                                       Corporate Controller
                                       (Principal Accounting Officer)








Date:  August 18, 1999



                                       15