<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 30, 1997.
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 executive offices) (Zip Code)
(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, 1997, 3,922,562
common shares, $.002 par value, were outstanding.
<PAGE> 2
EATERIES, INC. AND SUBSIDIARIES
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
December 29, 1996 and
March 30, 1997 (unaudited)............................................................ 4
Condensed Consolidated Statements of Income
(unaudited)
Thirteen weeks ended March 31, 1996
and March 30, 1997.................................................................... 5
Condensed Consolidated Statements of Cash Flows
(unaudited)
Thirteen weeks ended March 31, 1996
and March 30, 1997.................................................................... 6
Notes to Condensed Consolidated Financial
Statements (unaudited)................................................................ 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations................................................ 9
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............................................................. 17
</TABLE>
2
<PAGE> 3
PART I
FINANCIAL INFORMATION
3
<PAGE> 4
Item 1. Financial Statements
EATERIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 29, March 30,
1996 1997
------------ ------------
(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 695,481 $ 833,969
Receivables 801,546 1,024,060
Deferred income taxes 387,000 683,000
Inventories 1,400,262 1,317,591
Other 209,929 220,205
------------ ------------
Total current assets 3,494,218 4,078,825
PROPERTY AND EQUIPMENT 33,024,956 33,863,307
Less landlord finish-out allowances (13,896,522) (14,288,522)
Less accumulated depreciation and
amortization (5,444,896) (5,982,670)
------------ ------------
Net property and equipment 13,683,538 13,592,115
DEFERRED INCOME TAXES 975,000 584,000
OTHER ASSETS, net 555,945 509,210
------------ ------------
$ 18,708,701 $ 18,764,150
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,359,571 $ 3,270,615
Accrued liabilities 2,562,336 2,050,070
Current portion of long-term
obligations 28,308 39,949
------------ ------------
Total current liabilities 6,950,215 5,360,634
OTHER NONCURRENT LIABILITIES 638,017 687,384
LONG-TERM OBLIGATIONS, net of
current portion 1,470,715 2,817,292
COMMITMENTS
STOCKHOLDERS' EQUITY:
Preferred stock, none issued -- --
Common stock 8,287 8,300
Additional paid-in capital 9,340,519 9,360,781
Retained earnings 1,666,092 1,894,903
------------ ------------
11,014,898 11,263,984
Treasury stock, at cost,
282,761 shares at December
29, 1996 and March 30, 1997 (1,365,144) (1,365,144)
------------ ------------
Total stockholders' equity 9,649,754 9,898,840
------------ ------------
$ 18,708,701 $ 18,764,150
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE> 5
EATERIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Thirteen Weeks Thirteen Weeks
Ended March 31, Ended March 30,
1996 1997
--------------- ---------------
<S> <C> <C>
REVENUES:
Food and beverage sales $12,611,122 $14,031,238
Franchise fees and royalties 65,138 70,639
Other income 95,456 101,538
----------- -----------
12,771,716 14,203,415
----------- -----------
COSTS AND EXPENSES:
Cost of sales 3,840,928 4,081,825
Operating expenses 7,462,761 8,188,374
Pre-opening costs 120,000 18,000
General and administrative 833,837 981,858
Depreciation and amortization 432,939 542,026
Interest expense 28,972 67,524
----------- -----------
12,719,437 13,879,607
----------- -----------
INCOME BEFORE INCOME TAXES 52,279 323,808
PROVISION FOR INCOME TAXES 15,000 95,000
----------- -----------
NET INCOME $ 37,279 $ 228,808
=========== ===========
WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES 3,932,113 4,083,604
=========== ===========
NET INCOME PER SHARE $ 0.01 $ 0.06
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE> 6
EATERIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Thirteen Weeks Thirteen Weeks
Ended March 31, Ended March 30,
1996 1997
--------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 37,279 $ 228,808
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation & amortization 432,939 542,026
Common stock bonuses -- 1,950
Provision for deferred income taxes 15,000 95,000
(Increase) decrease in:
Receivables (146,998) (125,130)
Inventories 70,756 82,671
Other (30,108) (10,276)
Increase (decrease) in:
Accounts payable 856,051 (216,411)
Accrued liabilities (543,744) (512,266)
Other noncurrent liabilities (8,468) 49,366
----------- -----------
Total adjustments 645,428 (93,070)
----------- -----------
Net cash provided by operating
activities 682,707 135,738
----------- -----------
Cash flows from investing activities:
Capital expenditures (2,351,485) (838,348)
Landlord allowances 1,038,613 294,616
Additions to other assets (4,478) 42,484
----------- -----------
Net cash used in investing activities (1,317,350) (501,248)
----------- -----------
Cash flows from financing activities:
Decrease in bank overdraft included
in accounts payable -- (872,545)
Payments on notes payable to vendor (13,139) --
Net borrowings under revolving
credit agreement 900,000 1,250,000
Borrowing under note payable -- 115,000
Payments on long-term obligations -- (6,782)
Proceeds from sale of common stock -- 325
Proceeds from exercise of stock options 60,727 18,000
----------- -----------
Net cash provided by financing activities 947,588 503,998
----------- -----------
Net increase in cash & cash
equivalents 312,945 138,488
Cash and cash equivalents at beginning of period 1,001,954 695,481
----------- -----------
Cash and cash equivalents at end of period $ 1,314,899 $ 833,969
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE> 7
EATERIES, INC. AND SUBSIDIARIES
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. Operating results for the thirteen weeks ended March
30, 1997 are not necessarily indicative of the results that may be expected for
the year ended December 28, 1997. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 29, 1996.
Note 2 - Balance Sheet Information
Receivables are comprised of the following:
<TABLE>
<CAPTION>
December 29, March 30,
1996 1997
------------ -----------
<S> <C> <C>
Franchisees $ 53,685 $ 48,528
Insurance refunds 164,219 192,910
Landlord finish-out allowances 188,866 286,250
Other 394,776 496,372
---------- ----------
$ 801,546 $1,024,060
========== ==========
</TABLE>
Accrued liabilities are comprised of the following:
<TABLE>
<CAPTION>
December 29, March 30,
1996 1997
------------ -----------
<S> <C> <C>
Compensation $1,388,058 $1,302,701
Taxes, other than income 456,681 346,050
Other 717,597 401,319
---------- ----------
$2,562,336 $2,050,070
========== ==========
</TABLE>
7
<PAGE> 8
Note 3 - Supplemental Cash Flow Information
For the thirteen-week periods ended March 31, 1996 and March 30, 1997, the
Company had the following non-cash investing activity:
<TABLE>
<CAPTION>
Thirteen Weeks Thirteen Weeks
Ended March 31, Ended March 30,
1996 1997
--------------- ---------------
<S> <C> <C>
Net increase (decrease) in
receivables for landlord
finish-out allowances $(265,528) $ 97,384
</TABLE>
Note 4 - Provision for Restaurant Closures and Other Disposals
During 1995, the Company approved and began the implementation of a plan to
close four underperforming restaurants. In 1996, the Company identified two
additional restaurants for closure. As of March 30, 1997, the Company has
closed all six of these restaurants and has incurred all costs associated with
these closures. Management expects the effect of closing these underperforming
stores to result in improved margins and increased profitability 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 dispose of assets it considers in the best long-term
interest of the Company's shareholders.
Note 5 - New Accounting Standard
In March 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share," which
replaces primary earnings per share (EPS) with basic EPS. Basic EPS includes no
dilution and is computed by dividing income available to common stockholders by
the weighted-average number of common shares outstanding for the period. The
Statement is effective for periods ending after December 15, 1997, and the
Company believes the effect on its EPS will be immaterial.
8
<PAGE> 9
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
From time to time, the Company may publish forward-looking statements
relating to certain matters including anticipated financial performance,
business prospects, the future opening of Company-owned and franchised
restaurants, anticipated capital expenditures, and other similar matters. All
statements other than statements of historical fact contained in this Form 10-K
or in any other report of the Company are forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. In order to comply with the terms of that safe
harbor, the Company notes that a variety of factors could cause the Company's
actual results and experience to differ materially from the anticipated results
or other expectations expressed in the Company's forward-looking statements. In
addition, the Company disclaims any intent or obligation to update those
forward-looking statements.
INTRODUCTION
As of March 30, 1997, the Company owned and operated 40 and franchised
eight (Garfield's) casual theme, dinnerhouse restaurants. The Company currently
has three Garfield's in development. As of the date of this report, the entire
system includes 43 (40 Garfield's, two Pepperoni Grills and one test Casa Ole')
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.
9
<PAGE> 10
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>
Thirteen Weeks Thirteen Weeks
Ended March 31, Ended March 30,
1996 1997
---- ----
<S> <C> <C>
Statements of Income Data:
Revenues:
Food and beverage sales ............ 98.7% 98.8%
Franchise fees and royalties ....... 0.5% 0.5%
Other income ....................... 0.8% 0.7%
--------- ---------
100.0% 100.0%
Costs and Expenses:
Cost of sales (1) .................. 30.5% 29.1%
Operating expenses (1) ............. 59.2% 58.4%
Pre-opening costs (1) .............. 1.0% 0.1%
General and administrative ......... 6.5% 6.9%
Depreciation and amortization (1) .. 3.4% 3.9%
Interest expense ................... 0.2% 0.5%
--------- ---------
Income before income taxes .................. 0.4% 2.3%
Provision for income taxes .................. 0.1% 0.7%
--------- ---------
Net income .................................. 0.3% 1.6%
========= =========
Selected Operating Data:
(Dollars in thousands)
System-wide sales:
Company restaurants ................ $ 12,611 $ 14,031
Franchise restaurants .............. 2,033 1,994
--------- ---------
Total ............................ $ 14,644 $ 16,025
========= =========
Number of restaurants (at end of period):
Company restaurants ................ 42 43
Franchise restaurants .............. 8 8
--------- ---------
Total ............................ 50 51
========= =========
</TABLE>
(1) As a percentage of food and beverage sales.
RESULTS OF OPERATIONS
For the quarter ended March 30, 1997, the Company recorded net income of
$229,000 ($0.06 per share) on revenues of $14,203,000. This compares to net
income of $37,000 ($0.01 per share) for the quarter ended March 31, 1996 on
revenues of $12,772,000.
10
<PAGE> 11
REVENUES
Company revenues for the quarter ended March 30, 1997 increased 11% over the
revenues reported for the same period in 1996. The number of Company
restaurants operating at the end of each respective first quarter and the
number of operating months during that quarter were as follows:
<TABLE>
<CAPTION>
Number of Number of Average Monthly
Quarter Ended Units Open Operating Months Sales Per Unit
------------- ---------- ---------------- ---------------
<S> <C> <C> <C>
March 30, 1997 43 131 $107,100
March 31, 1996 42 124 $101,700
</TABLE>
Average monthly sales per unit increased by $5,400 or 5.3% during the first
quarter of 1997 versus 1996. This increase is attributable to the following
items:
During 1996, the Company began testing electronic advertising campaigns in
selected markets. Based on the favorable results of these tests, the Company
expanded its electronic advertising campaign into additional markets during the
first quarter of 1997.
Since April, 1996, the Company has rolled out three new menu revisions (in July
and October, 1996 and January, 1997), which included selective modest price
increases (inline with competitor pricing on comparable food selections) and
introduced new higher-priced product selections that were featured in the
Company's electronic and newspaper advertising campaigns.
During 1996, the Company changed its fiscal year to a 52/53 week year ending on
the last Sunday in December. As a result of this change, the Company's 1996
fiscal year ended on December 29, 1996. This moved two of the Company's highest
sales volume days (December 30 and 31) into the first quarter of 1997.
As a result of the Company's strategy to close underperforming locations, the
mix of restaurants open during the first quarter of 1997 represents a higher
sales volume mix than was open during the first quarter of 1996.
The effects 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 $71,000 from $65,000 in
the quarters ended March 30, 1997 and March 31, 1996, respectively. Other
income for the quarter ended March 30, 1997 was $102,000 as compared to the
previous year's amount of $95,000.
11
<PAGE> 12
COSTS AND EXPENSES
The following is a comparison of cost of sales and labor costs (excluding
payroll taxes and fringe benefits) as a percentage of food and beverage sales
at Company-owned restaurants:
<TABLE>
<CAPTION>
Thirteen Weeks Thirteen Weeks
Ended March 31, Ended March 30,
1996 1997
--------------- ---------------
<S> <C> <C>
Cost of sales 30.5% 29.1%
Labor costs 27.9% 26.5%
------ ------
Total 58.4% 55.6%
====== ======
</TABLE>
The decrease in cost of sales percentages during 1997 versus 1996 primarily
relates to continued menu development, increased vendor rebates and improved
store-level food and beverage cost controls.
The decrease in labor costs as a percentage of food and beverage sales during
1997 versus 1996 primarily relates to a new scheduling program, a reduction in
the average number of managers per store and continued refinement of restaurant
operations resulting in reduced kitchen labor costs.
For the quarter ended March 30, 1997, operating expenses as a percentage of
food and beverage sales decreased to 58.4% from 59.2% in the quarter ended
March 31, 1996. This decrease principally relates to lower labor costs (as
previously explained) partially offset by an increase in restaurant occupancy
costs.
Restaurant pre-opening development costs, which are expensed as incurred, were
$18,000 in 1997 (0.1% of food and beverage sales) versus $120,000 (1.0% of food
and beverage sales) in 1996. No restaurants were opened in the 1997 first
quarter while one restaurant was opened in the 1996 first quarter.
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 30, 1997 and March 31, 1996, general and
administrative costs as a percentage of total revenues were 6.9% and 6.5%,
respectively. The first quarter 1997 increase as a percentage of revenues
primarily relates to an increase in incentive
12
<PAGE> 13
compensation and severance costs. The higher absolute levels of general and
administrative costs from 1996 to 1997 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
1997 to $542,000 (3.9% of food and beverage sales) compared to $433,000 (3.4%
of food and beverage sales) in 1996. The increase principally relates to the
increase in net assets subject to depreciation and amortization in 1997 versus
1996 because of additional Garfield's and Pepperoni Grill restaurants opened
since April 1, 1996, and the remodeling of older restaurants.
Interest expense during the first quarter of 1997 was $68,000 (0.5% of total
revenues) versus $29,000 (0.2% of total revenues) in the first quarter of 1996.
This increase primarily relates to an increase in the average borrowing amount
under the Company's revolving credit agreement during the first quarter of 1997
versus the first quarter of 1996.
INCOME TAXES
The Company's provision for income taxes was $95,000 during the first quarter
of 1997 versus $15,000 during 1996. The effective tax rate for the Company
during the first quarter of 1997 was 29.3% versus 28.7% during the previous
year's first 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 3,932,113 and 4,083,604 in the
quarters ended March 31, 1996 and March 30, 1997, respectively. Under the
treasury stock method of computation, outstanding stock options and warrants
represented 124,022 and 220,337 common equivalent shares for the quarters ended
March 31, 1996 and March 30, 1997, respectively.
In March 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share," which
replaces primary earnings per share (EPS) with basic EPS. Basic EPS includes no
dilution and is computed by dividing income available to common stockholders by
the weighted-average number of common shares outstanding for the period.
13
<PAGE> 14
The Statement is effective for periods ending after December 15, 1997, and the
Company believes the effect on its EPS will be immaterial.
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 30, 1997, the Company's working capital ratio was .76 to 1 compared to
.50 to 1 at December 29, 1996. The Company's working capital was $(1,271,000)
at March 30, 1997 versus $(3,456,000) at December 29, 1996. 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 30, 1997, the Company had net cash provided by
operating activities of $136,000 as compared to net cash provided by operating
activities of $683,000 during the comparable 1996 period.
The Company plans to open three to five units during 1997 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 1997.
14
<PAGE> 15
In August, 1995, the Company entered into an agreement with a bank for a
revolving line of credit for $3,000,000. In July, 1996, this line of credit was
increased to $5,000,000 and the term was extended by one year to August, 1999.
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.
15
<PAGE> 16
PART II
OTHER INFORMATION
16
<PAGE> 17
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 11.1 - Computation of net income per share.
Exhibit 27.1 - Financial Data Schedule
(b) No reports on Form 8-K were filed during the thirteen weeks ended
March 30, 1997.
17
<PAGE> 18
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, 1997 By: /s/ COREY GABLE
------------------------------
Corey Gable
Vice President/Treasurer
Chief Financial and
Accounting Officer
18
<PAGE> 19
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
11.1 Computation of net income per share
27.1 Financial Data Schedule
</TABLE>
<PAGE> 1
EXHIBIT 11.1
STATEMENT RE: COMPUTATION OF NET INCOME PER SHARE.
19
<PAGE> 2
Exhibit 11.1
EATERIES, INC.
COMPUTATION OF NET INCOME PER SHARE
<TABLE>
<CAPTION>
Thirteen weeks Thirteen Weeks
Ended March 31, Ended March 30,
1996 1997
--------------- ---------------
<S> <C> <C>
Shares for net income per share computation:
Weighted average shares:
Common shares outstanding
from beginning of period 3,745,095 3,860,630
Common shares issued upon
exercise of stock options 62,996 2,637
----------- -----------
3,808,091 3,863,267
Common stock equivalents:
Shares issuable upon exercise
of options and warrants 761,983 556,983
Assumed repurchase of outstanding
shares under the treasury stock
method (based on average market
price for the quarter) (637,961) (336,646)
----------- -----------
124,022 220,337
----------- -----------
3,932,113 4,083,604
=========== ===========
Net income $ 37,279 $ 228,808
=========== ===========
Net income per share $ 0.01 $ 0.06
=========== ===========
</TABLE>
20
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 30, 1997 AND THE CONDENSED
CONSOLIDATED STATEMENT OF INCOME FOR THE THIRTEEN WEEKS ENDED MARCH 30, 1997 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-START> DEC-30-1996
<PERIOD-END> MAR-30-1997
<CASH> 834
<SECURITIES> 0
<RECEIVABLES> 1,024
<ALLOWANCES> 0
<INVENTORY> 1,318
<CURRENT-ASSETS> 4,079
<PP&E> 19,575
<DEPRECIATION> 5,983
<TOTAL-ASSETS> 18,764
<CURRENT-LIABILITIES> 5,361
<BONDS> 2,817
0
0
<COMMON> 8
<OTHER-SE> 9,891
<TOTAL-LIABILITY-AND-EQUITY> 18,764
<SALES> 14,031
<TOTAL-REVENUES> 14,203
<CGS> 4,082
<TOTAL-COSTS> 12,812
<OTHER-EXPENSES> 1,067
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 68
<INCOME-PRETAX> 324
<INCOME-TAX> 95
<INCOME-CONTINUING> 229
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 229
<EPS-PRIMARY> 0.06
<EPS-DILUTED> 0.06
</TABLE>
