SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark One)
(X ) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended AUGUST 1, 1999
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _________________ to _______________
Commission file number 0-8513
CHEFS INTERNATIONAL, INC.
(Exact name of small business issuer as specified in its charter)
DELAWARE 22-2058515
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
62 Broadway, Point Pleasant Beach, NJ 08742
(Address of principal executive offices)
(Issuer's telephone number, including area code) (732) 295-0350
______________________________
________________________________________________________________________________
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 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 of the past 90 days. Yes X No__.
Indicate the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
Class Outstanding Shares at September 7, 1999
- ------------------------------ ---------------------------------------
Common Stock, $.01 par value 4,488,291
<PAGE>
CHEFS INTERNATIONAL, INC. AND SUBSIDIARIES
INDEX
PART I FINANCIAL INFORMATION PAGE NO.
ITEM 1. Consolidated Financial Statements
Consolidated Balance Sheets - 1 - 2
August 1, 1999 and January 31, 1999
Consolidated Statements of Operations - 3
Six and Three Months Ended August 1, 1999 and
July 26, 1998
Consolidated Statements of Cash Flows - 4
Six Months Ended August 1, 1999 and
July 26, 1998
Notes to Consolidated Financial Statements 5
ITEM 2. Management's Discussion and Analysis 6 - 9
of Financial Condition and Results of Operations
PART II OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K 10
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
CHEFS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
ASSETS
August 1, 1999 January 31, 1999
-------------- ----------------
(Unaudited)
CURRENT ASSETS:
<S> <C> <C>
Cash and cash equivalents $ 1,592,844 $ 871,950
Investments 250,000 400,000
Miscellaneous receivables 107,198 71,278
Inventories 1,026,111 995,647
Due on sale of discontinued operations
from related party 75,071 68,355
Assets held for sale --- 135,000
Prepaid expenses 190,544 157,472
------------ ------------
TOTAL CURRENT ASSETS 3,241,768 2,699,702
----------- -----------
PROPERTY, PLANT AND EQUIPMENT, at cost 19,971,517 19,747,731
Less: Accumulated depreciation 7,806,017 7,322,169
----------- -----------
PROPERTY, PLANT AND EQUIPMENT, net 12,165,500 12,425,562
---------- ----------
OTHER ASSETS:
Investments 695,000 534,000
Goodwill - net 490,550 502,580
Liquor licenses - net 533,766 544,233
Due on sale of discontinued operations
from related party 172,787 211,149
Equity in life insurance policies 458,600 458,600
Due from related party 1,327 2,427
Other 15,870 22,482
------------ -----------
TOTAL OTHER ASSETS 2,367,900 2,275,471
---------- ----------
TOTAL ASSETS $17,775,168 $17,400,735
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
CHEFS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
LIABILITIES AND STOCKHOLDERS' EQUITY
<CAPTION>
August 1, 1999 January 31, 1999
-------------- ----------------
(Unaudited)
CURRENT LIABILITIES:
<S> <C> <C>
Notes and mortgages payable $ 362,034 $ 586,342
Accounts payable 715,041 657,363
Accrued payroll 122,489 91,328
Accrued expenses 601,879 370,548
Other Liabilities 205,362 321,263
Income taxes payable 21,775 19,700
------------ ----------
TOTAL CURRENT LIABILITIES 2,028,580 2,046,544
----------- ----------
NOTES AND MORTGAGES PAYABLE 1,238,768 1,442,470
----------- ----------
OTHER LIABILITIES 479,492 486,404
------------ ------------
STOCKHOLDERS' EQUITY:
Capital stock - common $.01 par value,
Authorized 15,000,000 shares,
Issued and outstanding 4,488,291
and 4,488,369 respectively 44,884 44,884
Additional paid-in capital 32,304,485 32,304,485
Accumulated deficit (18,321,041) (18,924,052)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 14,028,328 13,425,317
------------ -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $17,775,168 $17,400,735
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
CHEFS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Six Months Ended Three Months Ended
---------------- ------------------
August 1, 1999 July 26, 1998 August 1, 1999 July 26, 1998
-------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
SALES $ 9,979,400 $ 9,994,270 $ 5,579,685 $ 5,465,852
COST OF GOODS SOLD 3,210,808 3,256,357 1,811,233 1,801,341
------------ ------------ ------------ ------------
GROSS PROFIT 6,768,592 6,737,913 3,768,452 3,664,511
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Payroll and related expenses 2,794,031 2,909,310 1,508,141 1,548,237
Other operating expenses 1,927,105 2,100,166 1,008,343 1,071,130
Depreciation and amortization 506,345 506,081 252,165 254,562
General and administrative expenses 918,495 890,361 446,528 425,257
Gain on sale of asset (13,947) --- (13,947) ---
------------- ------------- ------------ ------------
TOTAL OPERATING EXPENSES 6,132,029 6,405,918 3,201,230 3,299,186
---------- ------------- ------------ -------------
INCOME FROM OPERATIONS 636,563 331,995 567,222 365,325
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense (77,092) (62,287) (38,252) (32,320)
Interest income 70,440 66,507 35,553 32,065
----------- ------------ ------------ ------------
OTHER INCOME (EXPENSE), NET (6,652) 4,220 (2,699) (255)
------------ ------------- ------------ -------------
INCOME BEFORE INCOME TAXES 629,911 336,215 564,523 365,070
PROVISION FOR INCOME TAXES 26,900 --- 22,400 ---
----------- ---------------- ------------ ---------------
NET INCOME $ 603,011 $ 336,215 $ 542,123 $ 365,070
========= =========== ========= ==========
BASIC INCOME PER COMMON SHARE $ .13 $ .07 $ .12 $ .08
=========== =========== =========== ==========
Number of shares outstanding 4,488,291 4,488,444 4,488,291 4,488,444
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
CHEFS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED AUGUST 1, 1999 AND JULY 26, 1998 (Unaudited)
1999 1998
---- ----
<CAPTION>
OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 603,011 $ 336,215
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 506,345 506,081
Gain on sale of asset (13,947) ---
Increase (decrease) in cash attributable to changes in assets
and liabilities:
Miscellaneous receivables (35,920) (46,982)
Inventories (30,464) 13,431
Prepaid expenses (33,072) (14,701)
Accounts payable 57,678 11,758
Accrued expenses and other liabilities 139,679 193,027
Income taxes payable 2,075 ---
----------- ----------
Total Adjustments 592,374 662,614
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,195,385 998,829
----------- -----------
INVESTING ACTIVITIES:
Capital expenditures (223,786) (695,972)
Net proceeds from sale of asset 148,947 ---
Sale or redemption of investments 250,000 96,000
Purchase of investments (261,000) ---
Proceeds from notes receivable -
discontinued operations - related party 31,646 142,835
Other assets 7,712 28,817
----------- -----------
NET CASH USED IN INVESTING ACTIVITIES (46,481) (428,320)
------------ -----------
FINANCING ACTIVITIES:
Repayment of debt (428,010) (319,809)
Proceeds from debt --- 124,000
------------ ------------
NET CASH USED IN FINANCING ACTIVITIES (428,010) (195,809)
------------ ----------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 720,894 374,700
CASH AND CASH EQUIVALENTS at beginning 871,950 1,136,063
----------- ----------
CASH AND CASH EQUIVALENTS at end $ 1,592,844 $1,510,763
=========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid $ 65,957 $ 55,939
========== ==========
Income taxes paid $ 24,825 $ ---
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
CHEFS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 1: BASIS OF PRESENTATION
The accompanying financial statements have been prepared by Chefs
International, Inc. (the "Company") and are unaudited. In the opinion of the
Company's management, all adjustments (consisting solely of normal recurring
adjustments) necessary to present fairly the Company's consolidated financial
position, results of operations and cash flows for the periods presented have
been made. Certain information and footnote disclosures required under generally
accepted accounting principles have been condensed or omitted from the
consolidated financial statements pursuant to the rules and regulations of the
SEC. The consolidated financial statements and notes thereto should be read in
conjunction with the Company's audited consolidated financial statements for the
year ended January 31, 1999 and notes thereto included in the Company's Annual
Report on Form 10-KSB filed with the SEC. The results of operations and the cash
flows for the three and six month periods presented in the consolidated
financial statements are not necessarily indicative of the results to be
expected for any other interim period or the entire fiscal year.
NOTE 2: EARNINGS PER SHARE
Basic earnings per share is computed using the weighted average number
of shares of common stock outstanding during the period.
NOTE 3: INCOME TAXES
At August 1,1999, the Company had net deferred tax assets of
approximately $3,304,000 arising principally from net operating loss
carryforwards. However, due to the uncertainty that the Company will generate
sufficient income in the future to fully or partially utilize these
carryforwards, an allowance of $3,304,000 has been established to offset these
assets.
NOTE 4: DUE ON SALE OF DISCONTINUED OPERATIONS
On February 20, 1997 (as of January 26, 1997), the Company sold 95% of
the common stock of Mr. Cookie Face ("MCF"), its ice cream production segment,
to a former director for an aggregate purchase price of $1,600,000, consisting
of a $500,000 cash payment and three notes totaling $1,100,000. The first note
for $100,000 was due on or before March 24, 1997 and was paid in full on a
timely basis. The second note for $500,000 is due in installments through July
1, 2000, and the third note for $500,000 is due on or before February 20, 2004,
with mandatory prepayments based on MCF's cash flow. The notes are secured by a
first lien on all of MCF's assets, however, the Company has agreed to
subordinate the notes up to $1,750,000 of additional financing for MCF. Based on
the estimated present value of the payments, management recorded a valuation
allowance of $601,050 against the second and third notes. During fiscal 1999,
MCF requested a restructuring of the terms of the second and third notes. As of
August 1, 1999 management has not yet agreed to the restructuring terms but has
permitted MCF to make partial payments until a restructured agreement is
finalized.
Cash receipts for these notes are applied to principal and interest
based on the discounted note payment schedules, which resulted in an additional
$13,400 of interest income being recognized during the six months ended August
1, 1999. The 5% of MCF capital stock retained by the Company has been valued at
$35,000.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Unaudited)
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Statements regarding future performance in this Quarterly Report on
Form 10-QSB constitute forward-looking statements under the Private Securities
Litigation Reform Act of 1995. No assurance can be given that the future results
covered by the forward-looking statements will be achieved. The Company cautions
readers that important factors may affect the Company's actual results and could
cause those results to differ materially from the forward-looking statements.
Such factors include, but are not limited to, changing market conditions, the
impact of competitive products, pricing and acceptance of the Company's
products.
Business Overview
The Company's principal source of revenue is from the operations of
its restaurants. The Company's cost of sales includes food and liquor costs.
Operating expenses include labor costs, supplies and occupancy costs (rent and
utilities), marketing and maintenance costs. General and administrative expenses
include costs incurred for corporate support and administration, including the
salaries and related expenses of personnel and the costs of operating the
corporate office at the Company's headquarters in Point Pleasant Beach, New
Jersey.
The Company currently operates eight restaurants on a year-round
basis. Seven of the restaurants are free-standing seafood restaurants in New
Jersey and Florida and are operated under the names "Lobster Shanty" or "Baker's
Wharfside." The other restaurant is a Mexican theme restaurant in New Jersey
operated under the name "Garcia's." The Company opened its first seafood
restaurant in November 1978 and opened its Garcia's restaurant in April 1996.
Generally, the Company's New Jersey seafood restaurants derive a
significant portion of their sales from May through September, while the
Company's Florida seafood restaurants derive a significant portion of their
sales from January through April. The Company's Garcia's restaurant derives a
significant portion of its sales during the holiday season from Thanksgiving
through Christmas.
At the end of the third quarter for the fiscal year ended January 31,
1999, the Company closed its Belmar, New Jersey Lobster Shanty restaurant due to
unsatisfactory operating results. The Company operated nine restaurants,
including the Belmar Lobster Shanty, during the six months ended July 26, 1998.
Results of Operations
Sales. Sales for the six months ended August 1, 1999 were $9,979,400,
a decrease of $14,900 or .1%, as compared to $9,994,300 for the six months ended
July 26, 1998. For the second quarter ended August 1, 1999, sales were
$5,579,700, an increase of $113,800 or 2.1%, as compared to last year's second
quarter. The now closed Belmar Lobster Shanty had sales of $599,600 and $383,100
for the six and three month periods of last year. Accordingly, sales for the
restaurants that operated during the comparable periods of this year and last
year increased $584,700 or 6.2% for the first six months and $496,900 or 9.8%
for the second quarter of this year. The improvement can be attributed to both a
mild winter and an unusually dry New Jersey summer. The number of customers
served in the eight restaurants increased by 1.1% for first the six months and
<PAGE>
by 3.1% for the second quarter of this year, while the average check paid per
customer also increased by 5.1% and 6.5% for the respective six and three month
periods of this year.
Gross Profit; Gross Margin. Gross profit was $6,768,600 or 67.8% of
sales for the six month period and $3,768,500 or 67.5% of sales for the quarter
ended August 1, 1999, compared to $6,737,900 or 67.4% and $3,664,500 or 67.0%
for the comparable periods of fiscal 1999. The increase in gross profit and
gross margin reflects lower food costs, primarily lower dairy and shrimp costs,
and the closure of the Belmar restaurant which had a lower gross profit margin
than the combined results of the other eight restaurants.
Operating Expenses. Total operating expenses decreased by 4.3% from
$6,405,900 during the first six months of fiscal 1999 to $6,132,000 during the
first six months of fiscal 2000, and by 3% from $3,299,200 during the second
quarter of fiscal 1999 to $3,201,200 during the second quarter of fiscal 2000.
Payroll and related expenses were 28% of sales for the six months and 27% for
the second quarter of fiscal 2000, compared to 29.1% and 28.3%, respectively,
for the comparable periods of fiscal 1999. The decrease in payroll and related
expenses as a percentage of sales is primarily attributable to the increase in
sales and the closure of the Belmar restaurant with its higher payroll costs.
Other operating expenses decreased by approximately $173,000 for the six months
ended August 1, 1999. This decrease is attributable to the Vero Beach, Florida
restaurant, which was previously rented at $10,000 per month, and was purchased
during the fourth quarter last year, the reduced occupancy costs at the Vero
Beach restaurant, and the closure of the Belmar restaurant. Depreciation and
amortization expenses were essentially unchanged from last year. General and
administrative expenses increased $28,100 and $21,300 for the six and three
month periods ended August 1, 1999 versus last year. Higher salaries and payroll
taxes and group health insurance costs account for the majority of the increase.
During the quarter ended August 1, 1999, the Belmar Lobster Shanty
liquor license was sold to an unaffiliated buyer for $150,000 resulting in a
gain of $13,900.
Other Income and Expense. Interest income increased $3,900 and $3,500
for the six and three month periods ended August 1, 1999, as compared to the
comparable periods last year. This increase was primarily a result of additional
interest income associated with notes receivable from the February 1997 sale of
discontinued operations (see note 4 to consolidated financial statements).
Interest expense increased $14,800 and $5,900 for the six and three month
periods ended August 1, 1999, as compared to the comparable periods last year.
This increase was primarily the result of the interest expenses associated with
a $880,000 first mortgage used to partially fund the Vero Beach Lobster Shanty
restaurant purchase and with a $124,000 loan used to partially fund the purchase
of a property next to the Toms River, New Jersey Lobster Shanty restaurant.
Net Income. Net income was $603,000 or $.13 per share for the six
months and $542,100 or $.12 per share for the quarter ended August 1, 1999, as
compared to $336,200 or $.07 per share and $365,100 or $.08 per share for the
comparable periods last year.
Liquidity and Capital Resources
The Company has financed its operations principally from revenues
derived from its restaurants. The Company's ratio of current assets to current
liabilities was 1.60:1 at August 1, 1999, compared to 1.32:1 at January 31, 1999
(the end of the last fiscal year). Working capital was $1,213,200 at August 1,
1999, compared to $653,000 at the year-end, an increase of $560,200. During the
six months ended August 1, 1999, net cash increased by $720,900. The primary
<PAGE>
components of this year's cash flow statement were net income of $625,400, the
sale of the Belmar liquor license for $150,000, an increase in accrued expenses
of $134,600 due to the timing of funding for the Company's new group health
insurance plan, capital expenditures of $223,800 for routine restaurant
improvements and debt repayment of $428,000. During the corresponding six month
period in fiscal 1999 working capital increased by $339,600 and net cash
increased by $374,700. The primary components of last year's cash flow statement
were net income of $336,200, an increase in accrued expenses of $193,000 due
primarily to legal costs, capital expenditures of approximately $696,000,
primarily at the Toms River restaurant, and debt repayment of $319,800.
During the second quarter of the current fiscal year the Company's
$500,000 bank line of credit was renewed for another year. The interest rate on
the line is variable, equal to the monthly fluctuating LIBOR rate plus 2.25%.
The entire $500,000 is currently available for use.
Management believes that funds from operations and its $500,000 bank
line of credit will be sufficient to meet obligations for the balance of fiscal
2000, including projected capital expenditures of $410,000 in addition to those
expenditures incurred during the first six months. The projected capital
expenditures include approximately $75,000 for Year 2000 ("Y2K") expenses, which
are expected to be incurred during the third and fourth quarters.
The Company's future capital requirements and the adequacy of
available funds will depend on numerous factors, including changing market
conditions, the impact of competitive products, pricing and acceptance of the
Company's products. To the extent that funds generated from the Company's
operations, together with its existing capital resources (including its credit
facility), and the net interest earned thereon, are insufficient to meet current
or planned operating requirements, the Company will be required to obtain
additional funds through equity or debt financing, or through other sources. The
terms of any equity financing may be dilutive to stockholders and the terms of
any debt financing may contain restrictive covenants, which limit the Company's
ability to pursue certain courses of action. The Company does not have any
committed sources of additional financing beyond that described above, and there
can be no assurance that additional funding, if necessary, will be available on
acceptable terms, if at all. If adequate funds are not available, the Company's
business, financial condition and results of operations could be materially and
adversely affected.
Year 2000
Commencing in 1997, the Company began a review of its restaurant and
corporate computer systems to identify potential problems with the Y2K issue. As
a result of that review, it was determined that certain systems would require
remediation, specifically, the corporate mainframe computer, various restaurant
point of sale systems ("POS") and personal computers ("PC"s) used throughout the
Company.
At August 1, 1999, the Company was at various stages of completion of
the remediation process. The mainframe software programming changes were
completed and successfully tested in May 1999. Mainframe Y2K software
expenditures to date have not been material and have been expensed as incurred.
The restaurant POS remediation process, including those systems not affected by
Y2K issues, is 63% complete and vendors for the impacted systems indicate that
fixes should be available during the third and fourth quarters of calendar 1999.
It is anticipated that the cost of such fixes will not be material and will be
expensed as incurred and funded from operating cash flows. Additionally, the
Company is at the final stage of replacing the non-compliant PCs and software.
It is anticipated that the new PCs will be installed sometime prior to the end
<PAGE>
of November 1999 and the cost estimate has been increased to $65,000, which will
also be funded out of operating cash flows.
The Company has been in contact with its various suppliers of goods
and services regarding their compliance with Y2K issues. To date, several key
vendors such as payroll/human resources, credit card processors, the major food
and liquor vendors, and various public utility companies have indicated that
they are or will be Y2K compliant. At least 50% of the remaining vendors
contacted have indicated in writing that they will be Y2K compliant or that they
will not be affected. Although the Company is unable to verify the Y2K readiness
of all third party vendors, the Company believes that there are multiple vendors
for the goods and services it receives from its suppliers and that the risk of
non-compliance with Y2K by any of its suppliers is minimal.
Considering the substantial progress made to date, the Company does
not anticipate delays in finalizing internal Y2K remediation within the
remaining time schedules. There can be no assurances, however, that the
Company's internal systems or those of a third party on which the Company relies
will be Y2K compliant by the year 2000. An interruption of the Company's ability
to conduct its business due to a Y2K readiness problem could have a material
adverse effect on the Company, its operations, financial condition and
liquidity.
Pending the results of the Company's review of the Y2K preparedness of
its critical third parties, the Company will then determine what course of
action and contingencies will need to be made, if any.
Inflation
It is not possible for the Company to predict with any accuracy the
effect of inflation upon the results of its operations in future years. The
price of food is extremely volatile and future projections vary and are
dependent upon a complex set of factors.
<PAGE>
CHEFS INTERNATIONAL, INC. AND SUBSIDIARIES
PART II OTHER INFORMATION
ITEM 6: Exhibits and Reports on Form 8-K
(a) The following exhibits are filed as part of this Quarterly
Report on Form 10-QSB:
No. 27.1 Financial Data Schedule
(b) The following Current Reports on Form 8-K were filed by
the Company during the quarter ended August 1, 1999:
(i) A Current Report on Form 8-K was filed on
June 4, 1999 reporting under Item 1 a
change in control of the Company due to
ownership by a group of stockholders of in
excess of 50% of the Company's issued and
outstanding shares of common stock.
(ii) A Current Report on Form 8-K was filed on
July 20, 1999 reporting under Item 1 that
on July 7, 1999, Michael F. Lombardi,
Joseph S. Lombardi, Stephen F. Lombardi and
Anthony M. Lombardi were elected as
directors of the Company to fill the
vacancies created by the resignations of
Anthony Papalia, Martin W. Fletcher, Jack
Mariucci and James Fletcher.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
CHEFS INTERNATIONAL, INC.
/s/ Anthony C. Papalia
- -----------------------
ANTHONY C. PAPALIA
Principal Executive and Financial Officer
DATED: September 13, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
</LEGEND>
<CIK> 0000201424
<NAME> CHEFS INTERNATIONAL, INC.
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-30-2000
<PERIOD-END> AUG-01-1999
<EXCHANGE-RATE> 1
<CASH> 1,592
<SECURITIES> 0
<RECEIVABLES> 107
<ALLOWANCES> 0
<INVENTORY> 1,026
<CURRENT-ASSETS> 3,241
<PP&E> 19,971
<DEPRECIATION> 7,806
<TOTAL-ASSETS> 17,775
<CURRENT-LIABILITIES> 2,028
<BONDS> 0
0
0
<COMMON> 44
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 17,775
<SALES> 9,979
<TOTAL-REVENUES> 9,979
<CGS> 3,210
<TOTAL-COSTS> 6,132
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (6)
<INCOME-PRETAX> 629
<INCOME-TAX> 26
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 603
<EPS-BASIC> 0.13
<EPS-DILUTED> 0
</TABLE>
