Industry News | February 25, 2003

Back Yard Burgers Reports Increase in Fourth Quarter and Year-End Revenues and Income

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Back Yard Burgers, Inc. (Nasdaq SmallCap:BYBI) today announced an increase in total revenues to $8.5M for the 13-week period ended December 28, 2002, 10.3% over the same period in 2001. The company primarily credits the net store unit growth of 14.4% over the prior year for the increase.

Revenues for the year ended December 28, 2002 increased 11.4% to $34.7M in 2002 from $31.1M in the prior year. Net income increased 43.8% to $1.5M, or $0.29 per diluted share, from $1.027M, or $0.22 per diluted share in the prior year.

Net income for the fourth quarter was $327,000, or $.07 per diluted share, an increase of 41.6% over net income of $231,000, or $.05 per diluted share, for fourth quarter 2001. Pre-tax income for the quarter was reduced by $111,000 for a reserve on a note receivable from a former franchisee and $70,000 for a land lease reserve relating to a restaurant building the company assumed as collateral under the provisions of the note.

Same-store sales for company-operated restaurants decreased 3.4% for the fourth quarter, and increased 0.1% for the year ended December 28, 2002. Same-store sales for franchised restaurants decreased 5.7% for the quarter, and 1.8% for the year. Management attributed the decline in same-store sales during the fourth quarter of 2002 to a decline in traffic counts due to competitive discounting.

Unit activity for the quarter included two company-operated store openings and five franchised store openings (including one co-branded restaurant with Taco Bell operations under the company's Multi-Brand Development Agreement with YUM! Brands, Inc.).

As of December 28, 2002, the company's restaurant system comprised 119 units, including 42 company-operated stores and 77 franchised stores. Expansion plans for fiscal year 2003 include three company-operated stores and 20 or more franchised stores (including five co-branded restaurants with Taco Bell operations under the agreement with YUM! Brands, Inc.).

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.