<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended April 19, 1998
Commission file number O-18629
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O'Charley's Inc.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Tennessee 62-1192475
------------------------------ -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3038 Sidco Drive, Nashville, Tennessee 37204
-------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(615) 256-8500
--------------------------------------------------
(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. Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Class Outstanding as of June 1,1998
----- -----------------------------
Common Stock, no par value 15,344,441 shares
<PAGE> 2
O'Charley's Inc.
Form 10-Q
For Quarter Ended April 19, 1998
Index
<TABLE>
<CAPTION>
Page No.
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<S> <C> <C>
Part I - Financial Information
Item 1. Financial statements:
Balance sheets as of April 19, 1998 and
December 28, 1997 3
Statements of earnings for the sixteen weeks
ended April 19, 1998 and April 20, 1997 4
Statements of cash flows for the sixteen weeks
ended April 19, 1998 and April 20, 1997 5
Notes to unaudited financial statements 6-7
Item 2. Management's discussion and analysis of
financial condition and results of operations 8-12
Part II - Other Information
Item 1. Legal Proceedings 13
Item 6. Exhibits and reports on form 8-K 13
Signatures 14
</TABLE>
<PAGE> 3
O'Charley's Inc.
Balance Sheets
(dollars in thousands)
<TABLE>
<CAPTION>
April 19, December 28,
1998 1997
--------- ------------
<S> <C> <C>
Assets
Current Assets:
Cash $ 2,374 $ 1,965
Accounts receivable 2,338 2,204
Inventories 7,903 4,600
Preopening costs 1,526 1,340
Deferred income taxes 807 807
Other current assets 2,311 2,231
-------- --------
Total current assets 17,259 13,147
Property and Equipment, net 144,110 136,051
Other Assets 2,410 1,317
-------- --------
$163,779 $150,515
======== ========
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 7,263 $ 5,529
Accrued payroll and related expenses 5,242 4,603
Accrued expenses 5,602 6,463
Federal, state and local taxes 4,034 3,240
Current portion of long-term debt and capitalized
leases 4,596 4,621
-------- --------
Total current liabilities 26,737 24,456
Deferred Income Taxes 3,358 2,958
Long-Term Debt 21,943 13,679
Capitalized Lease Obligations 12,636 14,039
Shareholders' Equity:
Common stock - No par value;authorized, 50,000,000
shares; issued and outstanding, 15,320,241 in 1998
and 15,264,921 in 1997 65,508 65,249
Additional paid-in capital 652 652
Retained earnings 32,945 29,482
-------- --------
99,105 95,383
-------- --------
$163,779 $150,515
======== ========
</TABLE>
See notes to financial statements.
-3-
<PAGE> 4
O'Charley's Inc.
Statements of Earnings
Sixteen Weeks Ended April 19, 1998 and April 20, 1997
<TABLE>
<CAPTION>
1998 1997
------- -------
(in thousands, except per share data)
<S> <C> <C>
Revenues:
Restaurant sales $70,057 $55,945
Commissary sales 893 681
Franchise revenue 11 9
------- -------
70,961 56,635
Costs and Expenses:
Cost of restaurant sales:
Cost of food, beverage and supplies 24,351 19,476
Payroll and benefits 21,440 17,282
Restaurant operating costs 9,878 8,176
Cost of commissary sales 837 649
Advertising, general and administrative expenses 4,645 3,723
Depreciation and amortization 3,688 2,829
------- -------
64,839 52,135
------- -------
Income from Operations 6,122 4,500
Other (Income) Expense:
Interest expense, net 777 1,037
Other, net 17 (71)
------- -------
794 966
------- -------
Earnings Before Income Taxes 5,328 3,534
Income Taxes 1,865 1,272
------- -------
Net Earnings $ 3,463 $ 2,262
======= =======
Earnings per Common Share - Basic $0.23 $0.19
======= =======
Earnings per Common Share - Diluted $0.21 $0.18
======= =======
Weighted Average Basic Common Shares Outstanding 15,286 11,808
======= =======
Weighted Average Dilutive Common Shares Outstanding 16,354 12,575
======= =======
</TABLE>
See notes to financial statements.
-4-
<PAGE> 5
O'Charley's Inc.
Statements of Cash Flows
Sixteen Weeks Ended April 19, 1998 and April 20, 1997
<TABLE>
<CAPTION>
1998 1997
------ ------
(in thousands)
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $3,463 $2,262
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 2,906 2,153
Amortization of preopening costs 782 676
Loss on the sale of assets 22 73
Changes in assets and liabilities:
Accounts receivable (134) (8)
Inventories (3,303) (2,468)
Additions to preopening costs (968) (964)
Other current assets (80) (512)
Accounts payable 1,734 4
Accrued payroll and other accrued expenses 972 168
------ ------
Net cash provided by operating activities 5,394 1,384
Cash Flows from Investing Activities:
Additions to property and equipment (11,387) (9,123)
Proceeds from the sale of assets 400 1,025
Other, net (1,093) 173
------ ------
Net cash used by investing activities (12,080) (7,925)
Cash Flows from Financing Activities:
Proceeds from long-term debt 8,300 7,500
Payments on long-term debt and capitalized
lease obligations (1,464) (1,092)
Exercise of employee incentive stock options 259 69
------ ------
Net cash provided by financing activities 7,095 6,477
------ ------
Increase (Decrease) in Cash 409 (64)
Cash at Beginning of the Period 1,965 1,616
------ ------
Cash at End of the Period $2,374 $1,552
====== ======
</TABLE>
See notes to financial statements.
-5-
<PAGE> 6
O'Charley's Inc.
Notes To Unaudited Financial Statements
Sixteen Weeks Ended April 19, 1998 and April 20, 1997
A. Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
reporting and in accordance with Rule 10-01 of Regulation S-X. The Company's
fiscal year ends on the last Sunday in December with its first quarter
consisting of sixteen weeks and the remaining three quarters consisting of
twelve weeks each.
In the opinion of management, the unaudited interim financial statements
contained in this report reflect all adjustments, consisting of only normal
recurring accruals, which are necessary for a fair presentation of the financial
position, and the results of operations for the interim periods presented. The
results of operations for any interim period are not necessarily indicative of
results for the full year.
These financial statements, footnote disclosures and other information
should be read in conjunction with the financial statements and the notes
thereto included in the Company's Annual Report on Form 10-K for the year ended
December 28, 1997.
B. Earnings Per Common Share
The Board of Directors of the Company approved a 3-for-2 stock split
effected as a 50% stock dividend for shareholders of record on May 20, 1998. The
new shares were distributed on June 1, 1998. On May 20, 1998, the total number
of outstanding shares of common stock increased 5,114,762 shares from 10,229,524
shares to 15,344,286 shares as a result of the stock split. The statements of
earnings for the sixteen weeks ended April 19, 1998 and April 20, 1997 reflect
the adjusted weighted average basic and dilutive common shares outstanding and
earnings per common share basic and diluted as adjusted for the stock split.
Pre-split basic earnings per common share and diluted earnings per common share
were $0.34 and $0.32, respectively, for the first quarter of 1998 compared with
$0.29 and $0.27, respectively, for the prior year comparable quarter.
The Company adopted Statement of Financial Accounting Standards No. 128
("FAS 128"), Earnings Per Share, during the fourth quarter of 1997. All prior
periods earnings per share ("EPS") data have been restated to reflect the
implementation of FAS 128. FAS 128 establishes standards for both the computing
and presentation of basic and diluted EPS on the face of the statements of
earnings. Basic earnings per common share have been computed on the basis of the
weighted average number of common shares outstanding, and diluted earnings per
common share have been computed on the basis of the weighted average number of
common shares outstanding plus the dilutive effect of options outstanding.
-6-
<PAGE> 7
The following is a reconciliation of the Company's basic and diluted
earnings per share in accordance with FAS 128.
<TABLE>
<CAPTION>
(In Thousands, Sixteen weeks ended Sixteen weeks ended
Except Per Share Data) April 19, 1998 April 20, 1997
- --------------------------------------------------------------------------------------
<S> <C> <C>
Net Earnings $ 3,463 $ 2,262
====================================
Basic Earnings Per Share:
Weighted shares outstanding 15,286 11,808
Basic earnings per share $ 0.23 $ 0.19
====================================
Diluted Earnings Per Share:
Weighted shares outstanding 15,286 11,808
Incremental stock option shares
Outstanding 1,068 767
------------------------------------
Total diluted shares outstanding 16,354 12,575
Diluted earnings per share $ 0.21 0.18
====================================
</TABLE>
On May 7, 1998, the Company issued 26,000 options at an exercise price of
$20 1/2.
C. New Accounting Pronouncements
On April 3, 1998, the AICPA Accounting Standards Executive Committee issued
Statement of Position 98-5, Reporting on the Costs of Start-up Activities (SOP
98-5) which will be effective for financial statements issued for fiscal years
beginning after December 15, 1998. The SOP requires that costs incurred during a
start-up activity be expensed as incurred. Currently the Company capitalizes its
preopening cost and amortizes these costs over a 12-month period. At April 19,
1998, the Company had $1.5 million in unamortized preopening costs. On or before
December 28, 1998, the Company will recognize, as a cumulative effect of a
change in accounting principle, a charge equal to the after tax effect of the
unamortized preopening costs at the date of adoption.
In June 1997, the Financial Accounting Standards Board issued SFAS No. 131,
Disclosure about Segments of an Enterprise and Related Information, which
supersedes SFAS No. 14. This pronouncement is effective for fiscal years after
December 15, 1997. Management is evaluating the impact of reporting information
about operating segments in the Company's financial statements.
-7-
<PAGE> 8
O'Charley's Inc.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Sixteen Weeks Ended April 19, 1998 and April 20, 1997
This report contains certain forward-looking statements within the meaning of
the federal securities laws, which are intended to be covered by the safe
harbors created thereby. Those statements include, but may not be limited to,
all statements regarding the intent, belief and expectations of the Company and
its management such as statements concerning the Company's future profitability
and its operating and growth strategy. Investors are cautioned that all
forward-looking statements involve risks and uncertainties including, without
limitation, increases in food, labor and employee benefit costs, the
availability of experienced management and hourly coworkers, the Company's
ability to locate and open new restaurants and to operate such restaurants
profitably, and the intense competition in the restaurant industry. Although the
Company believes that the assumptions underlying the forward-looking statements
contained herein are reasonable, any of the assumptions could be inaccurate and,
therefore, there can be no assurance that the forward-looking statements
included in this report will prove to be accurate. In light of the significant
uncertainties inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a representation by the
Company or any other person that the objectives and plans of the Company will be
achieved. The Company undertakes no obligation to publicly release any revisions
to any forward-looking statements contained herein to reflect events and
circumstances occurring after the date hereof or to reflect the occurrence of
unanticipated events.
-8-
<PAGE> 9
Results of Operations
The following table highlights the operating results for the first quarter
of 1998 and 1997 as a percentage of total revenue unless otherwise indicated.
Each of the first quarters is comprised of 16 weeks. All comparisons included in
management's discussion and analysis compares the first quarter of 1998 to the
first quarter of 1997 unless otherwise indicated.
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
First Quarter
------------------
1998 1997
------ ------
<S> <C> <C>
Revenues:
Restaurant sales 98.7% 98.8%
Commissary sales 1.3% 1.2%
------ ------
100.0% 100.0%
Costs and Expenses:
Cost of restaurant sales: (1)
Cost of food, beverage and supplies 34.8% 34.8%
Payroll and benefits 30.6% 30.9%
Restaurant operating costs 14.1% 14.6%
------ ------
79.5% 80.3%
Restaurant operating margin 20.5% 19.7%
Cost of commissary sales (2) 93.7% 95.3%
Advertising, general and
administrative expenses 6.5% 6.6%
Depreciation and amortization 5.2% 5.0%
Income from Operations 8.6% 7.9%
Other(Income)Expense:
Interest expense, net 1.1% 1.8%
Other, net 0.0% -0.1%
Earnings Before Income Taxes 7.5% 6.2%
Net Earnings 4.9% 4.0%
====== ======
</TABLE>
(1) As a percentage of restaurant sales.
(2) As a percentage of commissary sales.
- --------------------------------------------------------------------
-9-
<PAGE> 10
TOTAL REVENUES in the first quarter of 1998 increased $14.4 million, or
25.3%, to $71.0 million from $56.6 million in 1997. Restaurant sales increased
$14.2 million, or 25.2%, to $70.1 million for the first quarter of 1998 compared
to $55.9 million in 1997, primarily as a result of operating additional
restaurants in 1998 and an increase in same store sales of 7.5%. The following
table presents the number of restaurants in operation for each of the respective
first quarters:
<TABLE>
<CAPTION>
1998 1997
---- ----
<S> <C> <C>
Beginning number of Company restaurants 82 69
Opened during the first quarter 5 6
- --
Ending number of Company restaurants 87 75
== ==
</TABLE>
The increase in same store sales was a result of increased customer traffic
and, to a lesser extent, menu price increases. Management attributes the
increase in customer traffic to continued positive customer response to the
redesigned menu and new advertising campaign which began in the fourth quarter
of 1996, more favorable weather conditions in 1998, a successful seafood
promotion during the first quarter of 1998 and improved restaurant operations.
Menu price increases instituted during 1997 and the last 7 weeks of the first
quarter of 1998 resulted in an increased check average of approximately 1.2%.
Liquor sales as a percentage of restaurant sales decreased to 11.4% in the first
quarter of 1998 from 12.5%.
COST OF FOOD, BEVERAGE AND SUPPLIES increased $4.9 million, or 25.0%, in the
first quarter of 1998, to $24.4 million from $19.5 million in 1997. Cost of
food, beverage and supplies as a percentage of restaurant sales was unchanged
for the first quarter of 1998. Although the overall effect of food inflation
during the first quarter of 1998 was minimal, the Company did experience
increases in certain food items including potatoes and lettuce. These increases
were offset by the effects of the menu price increases and from improved
operating efficiencies and economies. Produce prices continue to be unstable due
to the effects of El Nino. Prices are expected to stabilize, however, unexpected
price spikes are possible during the second and third quarters of 1998 which may
increase food cost as a percentage of restaurant sales.
PAYROLL AND BENEFITS increased $4.1 million, or 24.1%, in the first quarter
of 1998 to $21.4 million from $17.3 million in 1997. Payroll and benefits as a
percentage of restaurant sales decreased 0.3% to 30.6% as compared to 30.9% in
1997. Increases in restaurant management bonuses and hourly wage rates were
offset by economies achieved from overall higher sales volume. The increased
bonus expense was primarily the result of higher bonuses earned by restaurant
management upon the improvement in restaurant level profits in 1998.
RESTAURANT OPERATING COSTS increased $1.7 million, or 20.8%, to $9.9 million
in the first quarter of 1998 from $8.2 million in 1997. As a percentage of
restaurant sales, the restaurant operating cost decreased 0.5% to 14.1% in the
first quarter of 1998. The Company has continued to open stores in existing
geographical markets which has contributed to slower growth rates in certain
expenses, particularly supervisory costs. Additionally, rent expense, as a
percentage of restaurant sales was lower as the Company continued to purchase
most of its restaurant sites.
RESTAURANT OPERATING MARGIN increased $3.4 million, or 30.7%, to $14.4
million in the first quarter of 1998. As a percentage of restaurant sales, the
restaurant operating margin increased to 20.5% from 19.7% in the prior year
first quarter. This improvement was primarily attributable to the leverage
achieved from overall higher sales volume.
ADVERTISING, GENERAL AND ADMINISTRATIVE EXPENSES increased $922,000, or
24.8%, to $4.6 million in the first quarter of 1998 from $3.7 million in 1997.
As a percentage of total revenue, advertising, general and administrative
expenses decreased 0.1% to
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<PAGE> 11
6.5%. This decrease was primarily the result of certain administrative expenses,
particularly salaries and advertising, being allocated over higher overall
revenues. Advertising expenses decreased to 2.7% of restaurant sales in the
first quarter of 1998 as compared to approximately 2.9% in 1997. Management
expects to continue its advertising effort in 1998 at approximately 2.7% to 3.0%
of restaurant sales.
DEPRECIATION AND AMORTIZATION EXPENSE in the first quarter of 1998
increased $859,000, or 30.4%. Depreciation and amortization as a percentage of
total revenues increased 0.2% to 5.2% in the first quarter of 1998. The increase
was primarily attributable to the Company incurring additional capital
expenditures for the remodeling of certain existing restaurants and the
relocation of two restaurants. See Note C to unaudited financial statement
regarding new accounting pronouncements for changes in the reporting of
preopening costs to be audited on or before December 28, 1998.
INCOME FROM OPERATIONS increased $1.6 million, or 36.0%, to $6.1 million in
the first quarter of 1998 from $4.5 million in 1997. As a percentage of total
revenues, income from operations increased 0.7% to 8.6%. This increase was
primarily the result of improved restaurant operating margin, which was
partially offset by increased depreciation and amortization expenses.
INTEREST EXPENSE, NET, decreased $260,000, or 25.1%, to $777,000 in the
first quarter of 1998 from $1.0 million in 1997. This decrease was primarily the
result of reduced borrowings under the Company's revolving credit facility. The
Company reduced its long-term debt by approximately $34.7 million in the fourth
quarter of 1997 using the net proceeds received from the sale of common stock.
INCOME TAXES EXPENSE in the first quarter of 1998 was $1.9 million as
compared to $1.3 million in 1997. As a percentage of earnings before income tax,
income tax expense was 35.0% for the first quarter of 1998 and 36.0% in the
first quarter of 1997.
Liquidity and Capital Resources
The Company's principal capital needs arise from the development of new
restaurants and the maintenance and improvement of existing restaurants.
Historically, the Company's primary sources for working capital have been cash
provided from operations, bank indebtedness and capitalized lease obligations.
During the first quarter of 1998, the Company expended approximately $11.4
million in capital expenditures for new stores and improvements to existing
facilities. Additionally, the Company repaid $1.5 million in principal on its
long-term debt and capitalized lease obligations. These capital outlays were
funded primarily by borrowings of $8.3 on the Company's revolving credit
facility (the "Revolver") and $5.4 million in cash provided by operating
activities.
The Company opened 5 new restaurants in the first quarter of 1998. As of
April 19, 1998, the Company had 5 additional restaurants under construction,
four of which are expected to open in the second quarter of 1998. The Company
expects to open 14 to 16 new Company-owned restaurants in 1998. Management
estimates that the Company will make approximately $40.0 million in capital
expenditures in 1998, including the first quarter. Actual capital expenditures
may increase based on a number of factors, including the timing of additional
purchases of future restaurant sites. The Company intends to continue financing
the furniture, fixtures and equipment for its new stores with capitalized lease
obligations.
As of April 19, 1998, $21.3 million of indebtedness was outstanding under
the Revolver and bore interest at a weighted average rate of 6.3%. The Revolver
provides for a maximum borrowing capacity of $100.0 million and matures on
November 30, 2000. The Revolver includes a provision to extend the maturity by
one year, at the participating bank group's option, beginning on the first
anniversary of the Revolver
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<PAGE> 12
(December 8, 1998). The Revolver imposes restrictions on the Company with
respect to maintenance of certain financial ratios, the incurrence of
indebtedness, the sale of assets, mergers, and the payment of dividends.
Management believes that available cash, cash generated from operations and
borrowings under the Revolver and capitalized lease obligations will be
sufficient to finance the Company's operations and expected growth through 1999.
The impact of inflation on the cost of food, labor, equipment, land and
construction costs could adversely affect the Company's operations. A majority
of the Company's employees are paid hourly rates related to federal and state
minimum wage laws. As a result of increased competition and the low unemployment
rates in the markets in which the Company's restaurants are located, the Company
has continued to increase wages and benefits in order to attract and retain
management personnel and hourly coworkers. In addition, most of the Company's
leases require the Company to pay taxes, insurance, maintenance, repairs and
utility costs, and these costs are subject to inflationary pressures. The
Company may attempt to offset the effect of inflation through periodic menu
price increases, economies of scale in purchasing and cost controls and
efficiencies at existing restaurants.
A business issue exists with regard to existing software applications and
the ability of these applications to process date values. Specifically, many
computer applications are written in two digits rather than four to define the
applicable year. Beginning in the year 2000, these applications will need to be
capable of recognizing four digit dates in order to properly distinguish the
year 2000 from prior periods.
Management of the Company has considered the impact of the year 2000 issues on
its computer systems and applications and has developed a remediation plan. The
plan provides for the remediation to be completed by 1999. The Company expenses
all costs associated with these system changes as the costs are incurred.
Management will also be making formal inquiries of its supplies and other
third-party entities with which it has business relations, as the Company may be
vulnerable as the result of the failure of such entities to remediate their own
year 2000 issues. Management does not believe the impact of the year 2000 issue
will have significant impact on the Company's operations or liquidity.
-12-
<PAGE> 13
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
As of April 19, 1998, the Company is a party in a civil action in the
United States District Court for the Middle District of Tennessee involving
a former general manager of the Company. In September 1995, the Company
filed an action against the former employee alleging wrongful conversion of
Company funds and fraudulent misrepresentation. The former employee moved
to amend his answer in the civil action filed by the Company claiming
damages of $30.0 million relating to counterclaims alleging malicious
prosecution and intentional infliction of emotional distress and $600,000
relating to counterclaims alleging breach of contract and race
discrimination. The Court has ruled that it will allow the former employee
to pursue all of the foregoing claims except the intentional infliction of
emotional distress claim. The Company believes the claims are without
merit, intends to vigorously prosecute its claims and vigorously defend any
of the former manager's claims. Based on the advice of counsel, the Company
believes that the malicious prosecution will be dismissed upon the
Company's motion for summary judgement. The Company does not believe the
outcome of this proceeding will materially affect its financial condition
or results of operations.
Item 6. Exhibits and Reports on Form 8-K
(a) Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the sixteen weeks
ended April 19, 1998.
(b) Exhibits
27.1 Financial Data Schedule 4-19-98 (for SEC Use Only)
27.2 Restated Financial Data Schedule 4-20-97 (for SEC Use Only)
-13-
<PAGE> 14
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.
O'Charley's Inc.
(Registrant)
Date: 06/03/98 By: /s/ Gregory L. Burns
------------- -----------------------------
Gregory L. Burns
President and
Chief Executive Officer
Date: 06/03/98 By: /s/ A. Chad Fitzhugh
------------- ------------------------------
A. Chad Fitzhugh
Chief Financial Officer
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF O'CHARLEY'S INC. FOR THE THREE MONTHS ENDED APRIL 19,
1998 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-27-1998
<PERIOD-START> DEC-29-1997
<PERIOD-END> APR-19-1998
<CASH> 2,374
<SECURITIES> 0
<RECEIVABLES> 2,338
<ALLOWANCES> 0
<INVENTORY> 7,903
<CURRENT-ASSETS> 17,259
<PP&E> 144,110
<DEPRECIATION> 0
<TOTAL-ASSETS> 163,779
<CURRENT-LIABILITIES> 26,737
<BONDS> 0
0
0
<COMMON> 65,508
<OTHER-SE> 33,597
<TOTAL-LIABILITY-AND-EQUITY> 163,779
<SALES> 70,057
<TOTAL-REVENUES> 70,961
<CGS> 55,669
<TOTAL-COSTS> 64,839
<OTHER-EXPENSES> 17
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 777
<INCOME-PRETAX> 5,328
<INCOME-TAX> 1,865
<INCOME-CONTINUING> 3,463
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,463
<EPS-PRIMARY> .23
<EPS-DILUTED> .21
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF O'CHARLEY'S INC. FOR THE FOUR MONTHS ENDED APRIL 20,
1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-START> DEC-30-1996
<PERIOD-END> APR-20-1997
<CASH> 1,552
<SECURITIES> 0
<RECEIVABLES> 1,555
<ALLOWANCES> 0
<INVENTORY> 6,973
<CURRENT-ASSETS> 15,667
<PP&E> 111,082
<DEPRECIATION> 0
<TOTAL-ASSETS> 127,986
<CURRENT-LIABILITIES> 23,796
<BONDS> 0
0
0
<COMMON> 29,653
<OTHER-SE> 22,944
<TOTAL-LIABILITY-AND-EQUITY> 127,986
<SALES> 55,945
<TOTAL-REVENUES> 56,635
<CGS> 44,934
<TOTAL-COSTS> 52,135
<OTHER-EXPENSES> (71)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,037
<INCOME-PRETAX> 3,534
<INCOME-TAX> 1,272
<INCOME-CONTINUING> 2,262
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,262
<EPS-PRIMARY> .19
<EPS-DILUTED> .18
</TABLE>
