011035 Back Yard Burgers Reports Record Results

Memphis, TN - Back Yard Burgers, Inc. announced results for the third quarter and first nine months of 2001.

* Total revenues for the 13-week period ended September 29, 2001, were $7,922,000, a third-quarter record for the company and an increase of 1.8% over total revenues for the 13-week period ended September 30, 2000. The increase is primarily the result of improvements in same-store sales.

* Net income for the 13-week period ended September 29, 2001, was $275,000, or $.06 per diluted share, a third-quarter record for the company and an increase of 89.7% over net income for the 13-week period ended September 30, 2000.

* Same-store sales for the 13-week period ended September 29, 2001, increased 1.5% for company-operated restaurants and decreased 0.4% for franchised restaurants compared with same-store sales for the 13-week period ended September 30, 2000.

* Unit activity for the quarter included two franchised store openings and one franchised store closing.

* The company also reported record year-to-date revenues and net income through the thirty-nine weeks ended September 29, 2001. Year-to-date revenues for the company increased 5.8% to $23,399,000 from $22,114,000 in the prior year and net income increased 84.7% to $796,000, or $0.17 per diluted share, from $431,000, or $0.09 per diluted share in the prior year. Prior year-to-date net income includes $271,000 in gains on the sales of unutilized assets.

As of September 29, 2001, the company's restaurant system comprised 99 units, including 36 company-operated stores and 63 franchised stores. Expansion plans for the remainder of 2001 includes two company-operated stores and three or more franchised stores.

Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 17 states. The restaurants specialize in charbroiled, freshly prepared, great-tasting food. As its name implies, Back Yard Burgers strives to offer the same high-quality ingredients and special care typified by outdoor grilling in the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and chicken sandwiches - charbroiled over an open flame, fresh salads, chili and other specialty items, including hand-dipped milkshakes, fresh-made lemonade and fresh-baked cobblers.

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