<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Act
of 1934 for the Quarterly Period ended March 31, 1996.
Commission File Number: 0-14968
-------------------------------------------------------
EATERIES, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Oklahoma 73-1230348
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
3240 W. Britton Rd., Ste. 202,
Oklahoma City, Oklahoma 73120
- ------------------------------- ------------------------------------
(Address of principal (Zip Code)
executive offices)
(405) 755-3607
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
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.
[X] Yes [ ] No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. - As of May 10, 1996,
3,843,158 common shares, $.002 par value, were outstanding.
<PAGE> 2
EATERIES, INC. AND SUBSIDIARY
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
December 31, 1995 and
March 31, 1996 (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Condensed Consolidated Statements of Income
(unaudited)
Three months ended March 31, 1995
and thirteen weeks ended March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . 5
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three months ended March 31, 1995
and thirteen weeks ended March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . 6
Notes to Condensed Consolidated Financial
Statements (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . 8
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . 14
</TABLE>
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<PAGE> 3
PART I
FINANCIAL INFORMATION
-3-
<PAGE> 4
Item 1. Financial Statements
EATERIES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, March 31,
1995 1996
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,001,954 $ 1,314,899
Receivables 1,353,099 1,663,569
Deferred income taxes 389,000 374,000
Inventories 1,368,673 1,297,917
Other 179,020 209,128
----------- -----------
Total current assets 4,291,746 4,859,513
PROPERTY AND EQUIPMENT 26,819,081 29,170,570
Less landlord finish-out allowances (12,409,951) (13,183,036)
Less accumulated depreciation and
amortization (4,047,414) (4,476,102)
----------- -----------
Net property and equipment 10,361,716 11,511,432
DEFERRED INCOME TAXES 991,000 1,047,000
LANDLORD FINISH-OUT ALLOWANCES
RECEIVABLE 429,000 -
OTHER ASSETS, net 522,493 522,720
----------- -----------
$16,595,955 $17,940,665
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,967,109 $ 3,823,160
Accrued liabilities 2,963,564 2,419,820
Notes payable to vendor 13,139 -
Current portion of long-term
obligations 25,305 25,000
----------- -----------
Total current liabilities 5,969,117 6,267,980
OTHER NONCURRENT LIABILITIES 465,382 456,914
LONG-TERM OBLIGATIONS, net of
current portion 1,249,023 2,149,328
COMMITMENTS
STOCKHOLDERS' EQUITY:
Preferred stock, none issued - -
Common stock 8,038 8,232
Additional paid-in capital 9,154,420 9,270,953
Retained earnings 1,084,593 1,121,876
----------- -----------
10,247,051 10,401,061
Treasury stock, at cost,
274,039 shares at December
31, 1995 and March 31, 1996 (1,334,618) (1,334,618)
----------- -----------
Total stockholders' equity 8,912,433 9,066,443
----------- -----------
$16,595,955 $17,940,665
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
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<PAGE> 5
EATERIES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Thirteen Weeks
Ended March 31, Ended March 31,
1995 1996
--------------- ---------------
<S> <C> <C>
REVENUES:
Food and beverage sales $10,219,533 $12,611,122
Franchise fees and royalties 55,583 65,138
Other income 199,847 95,456
----------- -----------
10,474,963 12,771,716
----------- -----------
COSTS AND EXPENSES:
Cost of sales 3,213,513 3,840,928
Operating expenses 6,016,723 7,462,761
Pre-opening costs 143,000 120,000
General and administrative 762,854 833,837
Depreciation and amortization 295,665 432,939
Interest expense 7,805 28,972
----------- -----------
10,439,560 12,719,437
----------- -----------
INCOME BEFORE INCOME TAXES 35,403 52,279
PROVISION FOR INCOME TAXES 10,196 15,000
----------- -----------
NET INCOME $ 25,207 $ 37,279
=========== ===========
WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES 3,908,591 3,932,113
=========== ===========
NET INCOME PER SHARE $ 0.01 $ 0.01
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
-5-
<PAGE> 6
EATERIES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Thirteen Weeks
Ended March 31, Ended March 31,
1995 1996
-------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 25,207 $ 37,279
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation & amortization 295,665 432,939
Gain on sale of assets (99,196) -
Provision for deferred income taxes 10,416 15,000
(Increase) decrease in:
Receivables (151,074) (146,998)
Inventories (2,936) 70,756
Other (22,529) (30,108)
Increase (decrease) in:
Accounts payable (454,957) 856,051
Accrued liabilities (62,649) (543,744)
Other noncurrent liabilities 126,851 (8,468)
---------- ----------
Total adjustments (360,409) 645,428
---------- ----------
Net cash provided by (used in) operating
activities (335,202) 682,707
---------- ----------
Cash flows from investing activities:
Capital expenditures (1,392,847) (2,351,485)
Landlord allowances 357,500 1,038,613
Net cash payments for restaurant acquisition (529,083) -
Proceeds from sale of property and equipment 314,717 -
Sales of marketable securities 414,244 -
Additions to other assets (43,129) (4,478)
---------- ----------
Net cash used in investing activities (878,598) (1,317,350)
---------- ----------
Cash flows from financing activities:
Increase in bank overdraft 702,373 -
Payments on notes payable to vendor (145,429) (13,139)
Net borrowings under revolving
credit agreement - 900,000
Payments on long-term obligations (48,868) -
Proceeds from exercise of stock options 23,332 60,727
---------- ----------
Net cash provided by financing activities 531,408 947,588
---------- ----------
Net increase (decrease) in cash & cash
equivalents (682,392) 312,945
Cash and cash equivalents at beginning of period 1,843,951 1,001,954
---------- ----------
Cash and cash equivalents at end of period $1,161,559 $1,314,899
========== ==========
</TABLE>
See notes to condensed consolidated financial statements.
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<PAGE> 7
EATERIES, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Basis of Preparation.
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. The Company changed its fiscal
year-end in the first quarter of 1996 to a 52/53 week year ending on the last
Sunday in December. As a result of this change, each of the Company's quarters
will consist of thirteen weeks. In a 53 week fiscal year, the fourth quarter
will include fourteen weeks. The first quarter of 1996 includes 91 days versus
90 days for the first quarter of 1995. Operating results for the thirteen
weeks ended March 31, 1996 are not necessarily indicative of the results that
may be expected for the year ended December 31, 1996. For further information,
refer to the financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1995.
Note 2 - Balance Sheet Information
Receivables are comprised of the following:
<TABLE>
<CAPTION>
December 31, March 31,
1995 1996
------------ -------------
<S> <C> <C>
Franchisees $ 88,448 $ 90,986
Insurance refunds 283,883 391,409
Landlord finish-out allowances 748,288 911,760
Other 232,480 269,414
---------- ----------
$1,353,099 $1,663,569
========== ==========
</TABLE>
Accrued liabilities are comprised of the following:
<TABLE>
<CAPTION>
December 31, March 31,
1995 1996
----------- -------------
<S> <C> <C>
Compensation $1,259,896 $1,117,317
Taxes, other than income 395,930 387,778
Other 1,307,738 914,725
---------- ----------
$2,963,564 $2,419,820
========== ==========
</TABLE>
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<PAGE> 8
Note 3 - Impairment of Long-Lived Assets
In March 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 121 ("SFAS 121") "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of", which requires impairment losses to be recorded on long-lived
assets used in operations when indicators of impairment are present and the
undiscounted future cash flows estimated to be generated by those assets are
less than the assets' carrying amount. SFAS 121 also addresses the accounting
for long-lived assets that are expected to be disposed of. The Company adopted
SFAS 121 in the first quarter of 1996, and based upon management's review of
the Company's long-lived assets, no impairment losses were recorded. (See
following Note 4 for discussion of the Company's provision for restaurant
closures and other disposals).
Note 4 - Provision for Restaurant Closures and Other Disposals.
During the third quarter of 1995, the Company approved and began the
implementation of a plan to close certain underperforming restaurants. As of
May 10, 1996, the Company had closed three of the four restaurants planned for
closure. Management anticipates that the remaining restaurant closure and
negotiation and execution of lease termination agreements will be completed
during the remainder of 1996. As a result of the completed and planned
restaurant closures, the Company recorded a pre-tax charge of $842,000 in the
third quarter of 1995, of which approximately $329,000 of lease termination
costs, litigation settlement costs and other exit costs had been incurred by
March 31, 1996. Management expects the effect of closing these underperforming
stores to result in improved margins and increased profitability for the
Company in future periods. In the normal course of business, management
performs a regular review of the strength of its operating assets. It is
management's plan to continue to make such decisions to close underperforming
restaurants and/or dispose of other assets it considers in the best long-term
interest of the Company's shareholders.
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<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
INTRODUCTION
As of March 31, 1996, the Company owned and operated 42 and franchised
eight (Garfield's) casual theme, dinnerhouse restaurants. Subsequent to that
date, the Company has opened one additional Garfield's. The Company currently
has five restaurants (four Garfield's and one Pepperoni Grill) in development.
As of the date of this report, the entire system includes 42 (40 Garfield's and
two Pepperoni Grills) Company and eight franchise Garfield's restaurants.
Unlike a majority of its publicly-held competitors which capitalize
and amortize restaurant pre-opening costs over a period of up to 24 months, the
Company expenses such costs as incurred.
PERCENTAGE RESULTS OF OPERATIONS AND RESTAURANT DATA
The following table sets forth, for the periods indicated, (i) the
percentages that certain items of income and expense bear to total revenues,
unless otherwise indicated, and (ii) selected operating data:
<TABLE>
<CAPTION>
Three Months Thirteen Weeks
Ended March 31, Ended March 31,
--------------- --------------
1995 1996
---- ----
<S> <C> <C>
Statements of Income Data:
Revenues:
Restaurant sales.............. 97.6% 98.7%
Franchise fees and royalties.. 0.5% 0.5%
Other income.................. 1.9% 0.8%
----- -----
100.0% 100.0%
Costs and Expenses:
Costs of sales (1)............ 31.5% 30.5%
Restaurant operating expenses(1) 58.9% 59.2%
Restaurant pre-opening costs 1.4% 0.9%
General and administrative expenses 7.3% 6.5%
Depreciation and amortization
expenses (1)............... 2.9% 3.4%
Interest expense............... 0.1% 0.2%
----- -----
Income before income taxes.............. 0.3% 0.4%
Provision for income taxes.............. 0.1% 0.1%
----- -----
Net income ............................. 0.2% 0.3%
===== =====
Selected Operating Data:
(Dollars in thousands)
System-wide sales:
Company restaurants............ $10,219 $12,611
Franchise restaurants.......... 1,847 2,033
------- -------
Total..................... $12,066 $14,644
======= =======
Number of restaurants (at end of period):
Company restaurants............ 37 42
Franchise restaurants.......... 8 8
------- -------
Total..................... 45 50
======= =======
</TABLE>
(1) AS A PERCENTAGE OF RESTAURANT SALES.
-9-
<PAGE> 10
RESULTS OF OPERATIONS
For the quarter ended March 31, 1996, the Company recorded net income of
$37,000 ($0.01 per share) on revenues of $12,772,000. This compares to net
income of $25,000 ($0.01 per share) for the quarter ended March 31, 1995 on
revenues of $10,475,000.
REVENUES
Company revenues for the quarter ended March 31, 1996 increased 22% over the
revenues reported for the same period in 1995. The number of Company
restaurants operating at the end of each respective first quarter ended March
31 and the number of operating months during that quarter were as follows:
<TABLE>
<CAPTION>
Number of Number of Average Monthly
March 31, Units Open Operating Months Sales Per Unit
--------- ---------- ---------------- ---------------
<S> <C> <C> <C>
1996 42 124 $101,700
1995 37 107 $ 95,500
</TABLE>
Average monthly sales per unit increased by $6,200 during the first quarter of
1996 versus 1995.
The 6.5% increase in average monthly sales per unit was achieved in spite of
the effect of adverse weather conditions experienced by the majority of the
Company's restaurants during January and early February. Management believes
the increase is attributable to the following items:
A stronger, more experienced management team in place at the beginning
of 1996. (Several key examples follow).
In November 1995, the Company created and filled the position of
Divisional Vice President of Operations/Garfield's. The individual
responsible for this position brings 17 years of senior operations'
management experience with two nationally recognized restaurant
chains. The Divisional Vice President is responsible for improving
service and sales of the Garfield's stores as well as recruiting and
hiring experienced store management.
In August, 1995 the Company hired a Vice President of Marketing, a new
position at the Company. The new Vice President of Marketing has over
17 years of marketing experience with a nationally recognized chain of
dinnerhouse restaurants. During the fourth quarter of 1995, a
detailed marketing plan was developed for 1996, with the primary
objectives being to improve same store sales and guest satisfaction.
The implementation of the marketing plan began during the first
quarter of 1996 and the Company's management believes its new
marketing plan strategy positively impacted the Company's same store
sales results during the period.
-10-
<PAGE> 11
The Company ran its second regional newspaper print program for
Garfield's restaurants (first program was run in November, 1995) in
February, 1996. This program was run in the majority of the Company's
restaurant markets and was successful in increasing revenues and
operating results.
During the first quarter of 1996, the Company began testing radio and
direct mail advertising campaigns in selective restaurant markets.
Initial results have been favorable and the Company plans to further
utilize these campaigns in additional restaurant markets during the
remainder of the year.
The affects of the previously noted items, along with the local
efforts of our restaurant management teams, contributed to the
Company's average monthly sales per unit increases.
Franchise fees and continuing royalties increased to $65,000 from $56,000 in
the quarter ended March 31, 1996 and 1995, respectively. Other income for the
quarter ended March 31, 1996 was $95,000 as compared to the previous year's
amount of $200,000. The 1995 first quarter's other income included a $99,000
gain on the sale of a building.
COSTS AND EXPENSES
A comparison of food and beverage and labor costs (excluding payroll taxes and
fringe benefits) as a percentage of restaurant sales at Company-owned
restaurants:
<TABLE>
<CAPTION>
Quarter Ended
March 31,
1995 1996
---- ----
<S> <C> <C>
Cost of sales 31.5% 30.5%
Labor costs 28.2% 27.9%
----- -----
Total 59.7% 58.4%
===== =====
</TABLE>
The decrease in cost of sales percentages during 1996 versus 1995 primarily
reflects the Company's improving purchasing techniques, which has allowed the
Company to fix purchase prices for certain high volume food products, and other
purchasing efficiencies. Where practical, such techniques will continue to be
used in the Company's purchasing methods. Also, the first quarter 1996 cost of
sales percentage improved over the previous year's as a result of the addition
to the menu of several new entree selections that have a lower percentage of
product cost to price than the average menu mix. Labor costs experienced during
the first quarter of 1996 modestly improved over the comparable 1995 period and
have remained at the levels expected by the Company.
-11-
<PAGE> 12
For the quarter ended March 31, 1996, operating expenses as a percentage of
revenues increased to 59.2% from 58.9% in the 1995 three month period. This
modest increase principally relates to higher employee benefit costs incurred
during the first quarter of 1996.
Restaurant pre-opening development costs, which are expensed as incurred, were
$120,000 in 1996 (.9% of total revenues) versus $143,000 (1.4% of total
revenues) in the 1995 three month period. Two restaurants were developed in the
1996 first quarter while three restaurants were developed in the 1995 period.
Under the Company's policy of expensing pre-opening costs as incurred, income
from operations, on an annual and quarterly basis, could be adversely affected
during periods of restaurant development; however, the Company believes that
its initial investment in the restaurant pre-opening costs yields a long-term
benefit of increased operating income in subsequent periods.
During the quarters ended March 31, 1996 and 1995, general and administrative
costs as a percentage of revenues were 6.5% and 7.3%, respectively. The first
quarter 1996 decrease as a percentage of revenues primarily reflects the
Company's revenue growth over the previous year's quarter. The higher absolute
levels of general and administrative costs from 1995 to 1996 are related
primarily to additional personnel costs and related costs of operating the
expanding restaurant system. The Company anticipates that its costs of
supervision and administration of Company and franchise stores will increase at
a slower rate than revenue increases during the next few years.
Depreciation and amortization expense increased during the first quarter of
1996 to $433,000 (3.4% of revenues) compared to $296,000 (2.9% of revenues) in
1995. The increase principally relates to the increase in net assets subject
to depreciation and amortization in 1996 versus 1995 because of additional
Garfield's and Pepperoni Grill restaurants opened since April 1, 1995, and the
remodeling of older restaurants.
INCOME TAXES
The Company's provision for income taxes was $15,000 during the first quarter
of 1996 versus $10,196 during 1995. The effective tax rate for the Company
during the first quarter of 1996 was 28.7% versus 28.8% during the previous
year's quarter.
NET INCOME PER SHARE AMOUNTS
Net income per share amounts are computed by dividing net income by the
weighted average number of common and dilutive common equivalent shares
outstanding during the period. Per share amounts are based on total
outstanding shares plus the assumed exercise of all dilutive stock options and
warrants. Common and common equivalent share amounts were 3,908,591 and
3,932,113 in the quarters ended March 31, 1995 and 1996, respectively. Under
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<PAGE> 13
the treasury stock method of computation, outstanding stock options and
warrants represented 213,675 and 124,022 common equivalent shares for the
quarters ended March 31, 1995 and 1996, respectively.
IMPACT OF INFLATION
The impact of inflation on the costs of food and beverage products, labor and
real estate can affect the Company's operations. Over the past few years,
inflation has had a lesser impact on the Company's operations due to the lower
rates of inflation in the nation's economy and the economic conditions in the
Company's market area.
Management believes the Company has historically been able to absorb or pass on
increased costs through certain selected menu price increases and increased
productivity and purchasing efficiencies, but there can be no assurance that
the Company will be able to do so in the future. Management anticipates that
the average cost of restaurant real estate leases and construction costs could
increase in the future which could affect the Company's ability to expand. In
addition, mandated health care and an increase in the Federal or state minimum
wages could significantly increase the Company's costs of doing business.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1996 the Company's working capital ratio was .78 to 1 compared to
.72 to 1 at December 31, 1995. The Company's working capital was $(1,408,000)
at March 31, 1996 versus $(1,677,000) at December 31, 1995. As is customary in
the restaurant industry, the Company has operated with negative working capital
and has not required large amounts of working capital. Historically, the
Company has leased the majority of its restaurant locations and through a
strategy of controlled growth financed its expansion from operating cash flow,
proceeds from the sale of common stock and utilizing the Company's revolving
line of credit.
During the quarter ended March 31, 1996, the Company had net cash provided by
operating activities of $683,000 as compared to net cash used by operating
activities of $335,000 during the comparable 1995 period.
The Company plans to open six to ten units during 1996 in restaurant locations
leased in regional malls. The Company believes the cash generated from its
operations and borrowing availability under its credit facility (described
below), will be sufficient to satisfy the Company's net capital expenditures
and working capital requirements during 1996.
In August, 1995, the Company entered into an agreement with a bank for a
revolving line of credit for $3,000,000. This revolver is unsecured, has a
three year term and contains customary financial covenants. This new credit
facility provides the Company additional borrowing capacity to continue its
expansion plans over the next several years.
-13-
<PAGE> 14
PART II
OTHER INFORMATION
-14-
<PAGE> 15
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 11.1 - Computation of net income per share.
(b) Exhibit 27 - Financial Data Schedule.
(c) A Form 8-K was filed on March 5, 1996 with the Securities and
Exchange Commission regarding a change in the Company's fiscal
year. No other reports on Form 8-K were filed during the
thirteen weeks ended March 31, 1996.
-15-
<PAGE> 16
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.
EATERIES, INC.
Registrant
Date: May 13, 1996 By: /s/ AUGUST A. HEHEMANN
---------------------------
August A. Hehemann
Vice President/Treasurer
Principal Financial and
Accounting Officer
-16-
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
<S> <C>
11.1 Computation of net income per share
27 Financial Data Schedule
</TABLE>
<PAGE> 1
Exhibit 11.1
EATERIES, INC.
COMPUTATION OF NET INCOME PER SHARE
<TABLE>
<CAPTION>
Three Months Thirteen Weeks
Ended March 31, Ended March 31,
1995 1996
---------- ------------
<S> <C> <C>
Shares for net income per
share computation:
Weighted average shares:
Common shares outstanding
from beginning of period 3,680,768 3,745,095
Common shares issued upon
exercise of stock options 14,830 62,996
Treasury shares acquired (682) -
---------- ------------
3,694,916 3,808,091
Common stock equivalents:
Shares issuable upon exercise
of options and warrants 394,813 761,983
Assumed repurchase of outstanding
shares under the treasury stock
method (based on average market
price for the quarter) (181,138) (637,961)
---------- -----------
213,675 124,022
---------- -----------
3,908,591 3,932,113
========== ===========
Net income $ 25,207 $ 37,279
========== ===========
Net income per share $ 0.01 $ 0.01
========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1996 AND THE CONDENSED
CONSOLIDATED STATEMENT OF INCOME FOR THE THIRTEEN WEEKS ENDED MARCH 31, 1996 AND
IS QUALIFIED IN THE ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,315
<SECURITIES> 0
<RECEIVABLES> 1,664
<ALLOWANCES> 0
<INVENTORY> 1,298
<CURRENT-ASSETS> 4,860
<PP&E> 15,988
<DEPRECIATION> 4,476
<TOTAL-ASSETS> 17,941
<CURRENT-LIABILITIES> 6,268
<BONDS> 2,149
<COMMON> 8
0
0
<OTHER-SE> 9,058
<TOTAL-LIABILITY-AND-EQUITY> 17,941
<SALES> 12,611
<TOTAL-REVENUES> 12,772
<CGS> 3,841
<TOTAL-COSTS> 11,737
<OTHER-EXPENSES> 983
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 29
<INCOME-PRETAX> 52
<INCOME-TAX> 15
<INCOME-CONTINUING> 37
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 37
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
</TABLE>
