UNITED STATES
SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1998
--------------
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________
Commission file number 0-12343
-------
VICORP Restaurants, Inc.
------------------------
(Exact name of registrant as specified in its charter)
COLORADO 84-0511072
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 West 48th Avenue, Denver, Colorado 80216
--------------------------------------------
(Address of principal executive offices)
(Zip Code)
(303) 296-2121
--------------
(Registrant's telephone number, including area code)
Not Applicable
--------------
(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 for the past 90 days.
Yes X No
--- ---
The registrant had 9,156,499 shares of its $.05 par value Common Stock
outstanding as of June 9, 1998.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
VICORP Restaurants, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
April 30, October 31,
1998 1997
--------- -----------
(unaudited)
<S> <C> <C>
ASSETS
Current assets
Cash $ 2,105 $ 1,464
Receivables 2,392 4,105
Inventories 5,237 6,751
Deferred income taxes 5,000 5,000
Prepaid expenses and other 1,103 1,190
---------- ---------
Total current assets 15,837 18,510
--------- ---------
Property and equipment, net 123,817 128,915
Deferred income taxes 36,529 38,619
Other assets 8,599 8,946
---------- ----------
Total assets $ 184,782 $ 194,990
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of long-
term debt (Note 2) $ 129 $ 83
Current maturities of
capitalized lease obligations 1,431 1,502
Accounts payable, trade 11,419 14,083
Accrued compensation 6,224 4,119
Accrued taxes 7,645 8,276
Accrued insurance 4,390 4,429
Other accrued expenses 4,076 4,580
--------- ---------
Total current liabilities 35,314 37,072
--------- ---------
Long-term debt (Note 2) 1,779 12,172
Capitalized lease obligations 6,515 7,293
Non-current accrued insurance 1,831 2,327
Other non-current liabilities and credits 5,224 6,207
Shareholders' equity
Series A Junior Participating
Preferred Stock, $.10 par value,
200,000 shares authorized,
no shares issued
Common stock, $.05 par value,
20,000,000 shares authorized,
9,144,499 and 9,132,786 shares
issued and outstanding 459 458
Paid-in capital 85,186 85,177
Retained earnings 48,474 44,284
---------- ---------
Total shareholders' equity 134,119 129,919
---------- ---------
Total liabilities and
shareholders' equity $ 184,782 $ 194,990
========== =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
VICORP Restaurants, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Three Six Six
months months months months
ended ended ended ended
--------- --------- --------- ---------
April 30, April 30, April 30, April 30,
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues
Restaurant operations $ 82,041 $ 78,569 $ 168,568 $ 161,671
Franchise operations 905 747 1,755 1,575
------- ------- ------- -------
Total revenues 82,946 79,316 170,323 163,246
Costs and expenses
Restaurant operations
Food 24,971 24,387 52,784 51,674
Labor 27,007 25,190 54,869 51,019
Other operating 21,404 20,755 42,940 42,063
General and administrative 6,333 5,803 12,477 11,850
------- ------- ------- -------
Operating Profit 3,231 3,181 7,253 6,640
Interest expense 403 659 892 1,416
Other (income), net (141) (187) (187) (338)
------- ------- ------- -------
Income before income tax expense 2,969 2,709 6,548 5,562
Income tax expense 1,070 976 2,358 2,003
------- ------- ------- -------
Net income $ 1,899 $ 1,733 $ 4,190 $ 3,559
======= ======= ======= =======
Basic earnings per share $ .21 $ .19 $ .46 $ .39
======= ======= ======= =======
Diluted earnings per share $ .21 $ .19 $ .45 $ .39
======= ======= ======= =======
Weighted average common shares and
dilutive common share equivalents 9,263 9,119 9,249 9,121
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
VICORP Restaurants, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
<TABLE>
<CAPTION>
Six Six
Months Months
ended ended
April 30, April 30,
1998 1997
--------- ---------
<S> <C> <C>
Operations
Net income $ 4,190 $ 3,559
Reconciliation to cash provided by operations
Depreciation and amortization 9,874 9,880
Deferred income tax provision 2,090 1,512
Loss on disposition of assets 173 89
Other, net (397) (289)
------- -------
15,930 14,751
Change in assets and liabilities
Trade receivables 1,554 1,180
Inventories 1,514 1,520
Accounts payable, trade (2,664) (1,611)
Other current assets and liabilities 997 (127)
Non-current accrued insurance (496) (922)
------- -------
Cash provided by operations 16,835 14,791
------- -------
Investing activities
Purchase of property and equipment (7,228) (4,404)
Purchase of other assets (177) (66)
Disposition of property 2,036 1,493
Collection of non-trade receivables 232 518
------- -------
Cash (used for) investing activities (5,137) (2,459)
------- -------
Financing activities
Issuance of debt -- --
Payment of debt and capitalized
lease obligations (11,247) (11,355)
Purchase of common stock -- --
Issuance of common stock 134 182
Other, net 56 97
------- -------
Cash used for financing activities (11,057) (11,076)
------- -------
Increase in cash 641 1,256
Cash at beginning of period 1,464 1,406
------- -------
Cash at end of period $ 2,105 $ 2,662
======= =======
Supplemental information
Cash paid during the period for
Interest (net of amount capitalized) $ 940 $ 1,209
Income taxes 144 293
</TABLE>
The accompanying notes are an integral part of the financial statements.
VICORP Restaurants, Inc.
NOTES TO FINANCIAL STATEMENTS (unaudited)
- -----------------------------------------
1. The consolidated financial statements should be read in
conjunction with the annual report to shareholders for the year
ended October 31, 1997. The unaudited financial statements for the
six months ended April 30, 1998 and April 30, 1997 contain all
adjustments which, in the opinion of management, are necessary for
a fair statement of the results for the interim periods presented.
All of the adjustments included are of a normal and recurring
nature.
2. As of April 30, 1998, the Company had $1,700,000 of borrowings
outstanding and $4,300,000 of letters of credit placed under its
bank credit facility. The maturity date of the Company's bank
credit agreement is February 28, 2001.
3. Basic earnings per share is calculated using the average number of
common shares outstanding. Diluted earnings per share is computed
on the basis of the average number of common shares outstanding
plus the effect of outstanding stock options using the "treasury
stock" method.
<TABLE>
<CAPTION>
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended
--------- --------- --------- ---------
April 30, April 30, April 30, April 30,
1998 1997 1998 1997
--------- --------- --------- ---------
(in thousands, except per
share data)
<S> <C> <C> <C> <C>
Net income available to
common shareholders(A) $ 1,899 $ 1,733 $ 4,190 $ 3,559
======= ======= ======= =======
Average outstanding:
Common Stock (B) 9,166 9,076 9,163 9,070
Stock options 97 43 86 51
------- ------- ------- -------
Common stock and common
stock equivalents (C) 9,263 9,119 9,249 9,121
======= ======= ======= =======
Earnings per share:
Basic (A/B) $ 0.21 $ 0.19 $ 0.46 $ 0.39
======= ======= ======= =======
Diluted (A/C) $ 0.21 $ 0.19 $ 0.45 $ 0.39
======= ======= ======= =======
</TABLE>
4. The Company has stock option plans which generally provide for the granting
of options to all employees and non-employee directors of the Company at
exercise prices not less than the market value of the common stock on the
date of the grant. The options generally vest over three years and expire
ten years after the date of grant or three months after employment
termination, whichever occurs first.
The following table summarizes information about the stock options
outstanding and exercisable as of April 30, 1998:
<TABLE>
<CAPTION>
Options Outstanding Options Exercisable
------------------- -------------------
Weighted Number
Average Weighted Exercisable Weighted
Remaining Average At Average
Range of Options Contractual Exercise April 30, Exercise
Exercise Prices Outstanding Life Price 1998 Price
--------------- ----------- ----------- -------- ----------- --------
<S> <C> <C> <C> <C> <C>
$ 9.875-$11.50 134,000 6.25 years $11.24 59,000 $10.90
$12.25 -$12.75 24,000 5.41 years $12.46 24,000 $12.46
$13.00 100,000 8.30 years $13.00 100,000 $13.00
$13.25 -$17.00 131,017 3.90 years $15.98 129,017 $16.00
$18.25 -$26.00 106,000 7.47 years $20.98 68,500 $22.48
------- -------
$ 9.875-$26.00 495,017 6.26 years $14.99 380,517 $15.36
======= =======
</TABLE>
5. In the fourth quarter of 1994, the Company adopted a plan to
dispose of 50 restaurant locations in trade areas that are no
longer considered appropriate for the Company's existing concepts.
As part of the disposal plan, the carrying value of those
restaurants' assets were written down to net realizable values. The
Company also accrued for expected carrying costs pending
disposition and sublease disposition losses. In the third quarter
of fiscal 1996, the Company recorded an asset disposal charge
related to a decision to close and dispose of six of its Angel's
Diners. As of the end of fiscal 1996, the Company had closed all
the restaurants related to both disposal plans. Consequently,
operating results for the second quarter of fiscal 1997 and 1998
did not include any amounts for these units. Fifty stores have been
disposed through conversion, sublease, assignment, lease
termination or sale.
During the first quarter of 1998, $401,000 of closure and carrying
related costs were charged against the liability established for
such costs. As of April 30, 1998, the Company had $4,148,000 of
reserves remaining to provide for the disposal of 15 closed
properties and 12 subleased properties. Units classified as
subleased may return to closed status upon sublease termination.
The reserves consisted of $2,836,000 to reduce the disposal
property to net realizable value and $1,312,000 to provide for
expected carrying costs and sublease losses.
Item 2.Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of operations
- ---------------------
The Company's quarterly financial information is subject to seasonal
fluctuation.
Restaurant operations
The following table sets forth certain operating information for the
Company's operating concepts and the Company as a whole.
<TABLE>
<CAPTION>
Second Quarter Year-to-Date
--------------------------- ---------------------------
Three Three Six Six
months ended months ended months ended months ended
------------ ------------ ------------ ------------
April 30, April 30, April 30, April 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Bakers Square
Restaurant sales $ 49,057,000 $ 46,180,000 $101,977,000 $ 96,615,000
Restaurant operating profit 2,869,000 2,832,000 6,469,000 6,184,000
Restaurant operating profit %<F1> 5.8% 6.1% 6.3% 6.4%
Divisional administrative costs 1,268,000 1,254,000 2,427,000 2,385,000
Divisional operating profit 1,601,000 1,576,000 4,042,000 3,799,000
Restaurants at quarter-end 150 152
Village Inn
Restaurant sales $ 32,984,000 $ 31,960,000 $ 66,591,000 $ 64,245,000
Restaurant operating profit 5,790,000 5,370,000 11,506,000 10,722,000
Restaurant operating profit %<F1> 17.6% 16.8% 17.3% 16.7%
Franchise income 905,000 747,000 1,755,000 1,575,000
Divisional administrative costs 1,182,000 880,000 2,290,000 1,656,000
Divisional operating profit 5,303,000 5,239,000 10,971,000 10,641,000
Restaurants at quarter-end 97 97
Angel's
Restaurant sales $ -- $ 429,000 $ -- $ 811,000
Restaurant operating profit -- 35,000 -- 9,000
Restaurant operating profit % -- 8.2% -- 1.1%
Divisional administrative costs -- -- -- 7,000
Divisional operating profit -- 35,000 -- 2,000
Restaurants at quarter-end -- 1
Consolidated
Restaurant sales $ 82,041,000 $ 78,569,000 $168,568,000 $161,671,000
Food cost % 30.4% 31.0% 31.3% 32.0%
Labor cost % 32.9% 32.1% 32.6% 31.6%
Other operating cost % 26.1% 26.4% 25.5% 26.0%
Restaurant operating profit % 10.6% 10.5% 10.7% 10.5%
Restaurant operating profit 8,659,000 8,237,000 17,975,000 16,915,000
Franchise income 905,000 747,000 1,755,000 1,575,000
Divisional general and
administrative costs 2,450,000 2,134,000 4,717,000 4,048,000
----------- ----------- ----------- -----------
Divisional operating profit 7,114,000 6,850,000 15,013,000 14,442,000
----------- ----------- ----------- -----------
Unallocated general and
administrative costs 3,883,000 3,669,000 7,760,000 7,802,000
----------- ----------- ----------- -----------
Operating profit 3,231,000 3,181,000 7,253,000 6,640,000
=========== =========== =========== ===========
</TABLE>
- -----------------------
<F1> At the end of the first quarter 1997, the company changed its method of
allocating administrative and support expenses between its various divisions
during the second quarter. The operating results for the first half of the year
in this report incorporate restated figures for the first quarter which do not
conform to the figures previously reported for that period.
Consolidated restaurant sales increased $3.5 million, or 4.4%, during
the second fiscal quarter and increased $6.9 million, or 4.3% for the
first two quarters of fiscal 1998 compared to last year. The sales
increase resulted from strong year-to-year comparable store sales and
guest count comparisons.
During the second quarter of fiscal 1998, sales increased 5.8% and
guest counts increased 3.5% on a comparable same store basis. Same
store sales for Village Inn increased 3.7% and Bakers Square's same
store sales increased by 7.3%. Comparable guest counts for Village Inn
improved 2.0% and Bakers Square improved 4.8%. Restaurant remodel
programs continued to contribute to the increase.
For the first half of fiscal 1998, comparable total store sales
increased 5.9%, reflective of a 6.9% increase for Bakers Square and a
4.4% increase for Village Inn. Comparable total guest counts increased
4.0%, reflective of a 4.4% increase for Bakers Square and a 3.5%
increase for Village Inn.
The Company continues to focus on increasing the guest counts at its
Bakers Square concept. Bakers Square Midwest units were remodeled in a
significant campaign to enhance the dining experience. In addition, both
tactical marketing programs and special incentive programs in the local
restaurants will be expanded to increase customer awareness and improve
service levels.
Consolidated restaurant operating profit increased by $422,000
increasing as a percentage of restaurant sales from 10.5% to 10.6% in
the second quarter of 1998 versus the second quarter of 1997. Bakers
Square's restaurant operating profit percentage decreased by .3
percentage points while Village Inn's increased by .8 percentage points
over the same quarter of 1997. The improved operating profit was due
to increased sales and operating efficiencies.
Consolidated restaurant operating profit increased by $1.0 million for
the first two quarters of fiscal 1998 compared to 1997's first two
quarters largely due to an increase in sales and operating efficiencies
in food, labor and other costs.
The following presents select quarterly trend data related to the
operations of Bakers Square and Village Inn:
<TABLE>
<CAPTION>
Bakers Square Village Inn
------------- -----------
Comparable Comparable
Comparable Store Store Comparable Store Store
Store Guest Operating Store Guest Operating
Sales Counts Margin Sales Counts Margin
----------------------------------- ----------------------------------
<S> <C> <C> <C> <C> <C> <C>
1997:
1st Qtr (4.6%) (2.4%) 6.7% (0.2%) (0.2%) 16.6%
2nd Qtr (5.6%) (3.3%) 6.1% (1.5%) (1.0%) 16.8%
3rd Qtr (3.7%) (0.9%) 6.4% (0.1%) 1.5% 16.7%
4th Qtr 0.5% 0.9% 5.2% 3.1% 3.1% 17.0%
1998:
1st Qtr 6.5% 4.0% 6.8% 5.1% 4.9% 17.0%
2nd Qtr 7.3% 4.8% 5.8% 3.7% 2.0% 17.6%
</TABLE>
Other revenues and expense
- --------------------------
Compared to 1997's second quarter, franchise revenue in 1998's second
quarter increased by $158,000. For the first two quarters of fiscal
1998, franchise revenue increased by $180,000 compared to the first two
quarters of 1997. The increase was largely the result of an expansion
in the number of operating stores plus a growth in royalties as a
result of higher franchise sales income.
As a percent of sales, general and administrative expense increased
slightly in the second quarter of 1998 from the comparable 1997 second
quarter. Actual general and administrative expense increased $530,000
during the second quarter and $627,000 year-to-date over the
corresponding 1997 periods, due to increased head count and training program
investment. Year-to-date, general and administrative expense as a percent
of revenues was 7.3% for both 1998 and 1997.
Interest expense declined 39%, or $256,000, for the second quarter and
37%, or $524,000, for the first two quarters of 1998 as compared to
fiscal 1997 due to a substantial reduction in long-term debt.
The Company's effective tax rate for the second quarter and first half
of 1998 was 36% representing statutory tax rates offset somewhat by the
effect of FICA tax credits.
Liquidity and capital resources
- -------------------------------
Operating cash flows increased $2.0 million in the first two quarters
of 1998 versus the first two quarters of 1997. The increase resulted
primarily from improved operating results and reduced working capital
requirements.
As of April 30, 1998, $1,700,000 of advances were outstanding under the
Company's bank credit facility and approximately $34,000,000 was
available for additional direct advances, subject to limitations on
combined balances of direct advances and letters of credit. In the
first two quarters of 1998, the Company reduced its outstanding
borrowings by $10.4 million. On December 19, 1997, the Company accepted
an amended and restated credit agreement which provided an available
credit limit of $40,000,000. The agreement expires on February 28,
2001.
During the first two quarters of 1998, the Company disposed of seven
properties, three through sale, one through sublease, three through
lease termination. Also during that time, closure and carrying costs
of $401,000 were charged against the liability established for such,
and cash proceeds of $2,437,000 were realized from the disposition of
properties.
At April 30, 1998, the Company had 17 closed properties remaining which
it was trying to sell or sublease. Three of those properties were
owned in fee and the rest were leased. The Company also had 13
subleased properties. The Company hopes to sell the fee properties
over the next year and $1.2 million of proceeds are expected to be
realized from their sale. The Company does not anticipate significant
proceeds from the disposition of the leased properties. It is expected
that the majority of the leased properties will be subleased over the
next twelve to eighteen months. Cash carrying costs of approximately
$1.3 million are expected to be incurred over that period. The Company
expects to sublease nine of the properties at rentals lower than the
Company's obligations under the prime leases. Those sublease losses
will be incurred over the remaining years of the leases and the Company
does not anticipate that the losses will materially affect the
Company's liquidity.
As of April 30, 1998, authorizations granted by the Board of Directors
for the purchase of 300,500 common shares of the Company's common stock
remained available. No shares were purchased in the first half of 1998.
Future purchases with respect to the authorizations may be made from time to
time in the open market or through privately negotiated transactions and will
be dependent upon various business and financial considerations.
Capital expenditures approximating $11.1 million are expected during
the remainder of the fiscal year. The level of planned expenditures
may be reduced as a result of operating conditions. Cash provided by
operations, the unused portion of the Company's bank credit facility
and other financing sources are expected to be adequate to fund these
expenditures and any cash outlays for the purchase of the Company's
common stock as authorized by the Board.
VICORP has guaranteed certain leases for approximately twenty-five
restaurant properties sold to others in 1986 and approximately twenty
restaurant leases of certain franchisees and others. Minimum future
rental payments remaining under these leases were approximately $9.5
million as of October 31, 1997. These guarantees are included in the
definition of financial instruments with off-balance-sheet risk of
accounting loss; however, the Company has not been required to make any
payments with respect to these guarantees and presently has no reason
to believe any payments will be required in the future. The Company
believes it is impracticable to estimate the fair value of these
financial guarantees (e.g., amounts the Company could pay to remove the
guarantees) because the Company has no present intention or need to
attempt settlement of any of the guarantees.
Outlook
- -------
The minimum wage in California increased to $5.75 per hour in March
1998, and a number of other states have indicated that they are
considering raising their minimum wage rate above the federal level.
In addition, Congress is considering raising the federal minimum wage
over the next two years. In order to partially offset this labor cost
inflation, some menu price increases may become necessary to offset this
increased cost.
The Company is evaluating various alternative investment strategies for
utilizing cash flow from operations. These alternatives include, but
may not be limited to, new Village Inn restaurant properties, paydown
of credit facility debt, acquisition of new computer systems,
repurchase of common stock, and acquisition of restaurant concerns in
the family style segment.
Certain matters discussed in this report are "forward-looking
statements" intended to qualify for the safe harbors from liability
established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can generally be identified as such
because the context of the statement will include words such as the
Company "believes," "anticipates," "expects" or words of similar
import. Similarly, statements that describe the Company's future
plans, objectives or goals are also forward-looking statements. Such
forward-looking statements are subject to certain risk and
uncertainties which are described in close proximity to such statements
and which could cause actual results to differ materially from those
currently anticipated. Shareholders, potential investors and other
readers are urged to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements made herein are only made as of the date of this report and
the Company undertakes no obligation to publicly update such forward-
looking statements to reflect subsequent events or circumstances.
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Securities Holders.
On April 9, 1998, the Registrant held its Annual Meeting of
Shareholders. At that meeting, two proposals were submitted to the
shareholders for approval. Those proposals related to the election of
directors and the ratification of the appointment of the Company's
independent auditors for VICORP's 1998 fiscal year.
As to the first proposal, each of the nominees for directors were
elected based upon the following vote:
<TABLE>
<CAPTION>
Director For Against Abstain Broker Non-
Votes
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Carole Lewis Anderson 8,181,208 97,479 -- --
Bruce B. Brundage 8,183,356 95,411 -- --
Charles R. Frederickson 8,182,356 96,411 -- --
John C. Hoyt 8,183,356 95,411 -- --
J. Michael Jenkins 8,182,256 96,511 -- --
Robert T. Marto 8,183,356 95,411 -- --
Dudley C. Mecum 8,183,356 95,411 -- --
Dennis B. Robertson 8,183,356 95,411 -- --
Hunter Yager 8,182,956 95,811 -- --
Arthur Zankel 8,183,356 95,411 -- --
</TABLE>
The selection of Arthur Andersen LLP to serve as the Company's
independent accountants for fiscal 1998 was ratified. The vote was
8,262,273 for; 144 against; 16,350 abstained; and no broker non-votes.
Item 5. Other Information.
J. Michael Jenkins resigned as President and Chief Executive Officer
on April 30, 1998. His duties were assumed by Charles R. Frederickson,
Chairman of the Board of the Company.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(27) Financial data schedule.
(b) Reports on Form 8-K.
None.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
VICORP Restaurants, Inc.
------------------------
(Registrant)
June 10, 1998 By: /s/ Charles R. Frederickson
---------------------------
Charles R. Frederickson
Chairman of the Board,
President and Chief Executive
Officer
June 10, 1998 By: /s/ Richard E. Sabourin
-----------------------
Richard E. Sabourin
Executive Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VICORP
RESTAURANTS, INC. CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF OPERATIONS AS OF
APRIL 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK> 0000703799
<NAME> VICORP RESTAURANTS, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<CASH> 2,105
<SECURITIES> 0
<RECEIVABLES> 2,392
<ALLOWANCES> 0
<INVENTORY> 5,237
<CURRENT-ASSETS> 15,837
<PP&E> 283,497
<DEPRECIATION> 159,680
<TOTAL-ASSETS> 184,782
<CURRENT-LIABILITIES> 35,314
<BONDS> 8,294
0
0
<COMMON> 459
<OTHER-SE> 133,630
<TOTAL-LIABILITY-AND-EQUITY> 184,782
<SALES> 168,568
<TOTAL-REVENUES> 170,323
<CGS> 52,784
<TOTAL-COSTS> 52,784
<OTHER-EXPENSES> 97,809
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 892
<INCOME-PRETAX> 6,548
<INCOME-TAX> 2,358
<INCOME-CONTINUING> 4,190
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,190
<EPS-PRIMARY> .46
<EPS-DILUTED> .45
</TABLE>
