BACK YARD BURGERS REPORTS RECORD RESULTS FOR FOURTH QUARTER AND YEAR.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Feb. 14, 1995--Back Yard Burgers, Inc. (NASDAQ Small Cap:BYBI; CHX:BYB) today announced record revenues and earnings for the fourth quarter and year ended December 31, 1994.

For the thirteen weeks ended December 31, 1994, the Company's total revenues rose to $4,973,000 from $2,788,000 in the comparable year-earlier period, which ended on January 1, 1994. Net income for the fourth quarter totaled $67,000 compared with a net loss of $53,000 in the same period last year. Earnings per share for the period were $.02 on a primary basis and $.01 per share fully diluted versus a loss of $.02 in the same period last year.

For the year ended December 31, 1994, total revenues rose to $17,244,000 compared with $5,996,000 in the year ended January 1, 1994. Net income for 1994 totaled $682,000 versus $22,000 last year. Earnings per share for 1994 totaled $.20 on a primary basis and $.15 fully diluted compared with $.01 in 1993.

The computation of earnings per share reflects a significantly greater number of shares outstanding during 1994. In July 1993, the Company completed an initial public offering of 1,495,000 common shares and, in August 1993, it completed a private placement of 300,000 common shares.

Commenting on the report, Lattimore M. Michael, Chairman and Chief Executive Officer, said the Company's continued momentum in operations reflected significantly higher restaurant sales for the year because of ongoing same-store sales improvements and the addition of company-owned stores during the year. Additionally, he pointed out that the Company acquired 11 franchised stores in the latter part of 1993 and, as a result, prior-year results did not reflect a full year of operations from those units.

"Progress and growth highlighted the Company's performance in 1994," he said, "as we worked to integrate our acquired units and continued our expansion efforts in our three largest metropolitan markets -- Memphis, Nashville and Little Rock. During 1994, we added a total of 10 new Company-owned units and laid the groundwork for three additional Company-owned stores, two of which have opened subsequent to year~s end and another that is expected to open by May 1995. We also signed single unit franchise agreements during the year for seven units and, after the end of the year, we completed an area development agreement for a 12-unit franchise in central North Carolina."

Michael noted that Back Yard Burgers' total system-wide sales increased 41% during the fourth quarter of 1994 and 32% for the year. Company-owned units posted an increase of 3.4% in same-store sales during the fourth quarter and 6.4% for the year. On a system-wide basis, same-store sales increased 7.4% and 6.1% for the fourth quarter and year, respectively.

During the second quarter of 1994, Back Yard Burgers fully reversed a previously established deferred tax asset valuation allowance. This reversal had the effect of significantly reducing income tax expense for 1994. The Company recorded a provision for income taxes at the full statutory rate in both the third and fourth quarters of 1994.

Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 14 states. The Company features gourmet hamburgers and chicken sandwiches, name-brand condiments and beverages as well as hand-dipped milkshakes, fresh-squeezed lemonade and fresh-baked cobblers.

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                          BACK YARD BURGERS, INC.
                      Unaudited Financial Highlights

                        Thirteen Weeks Ended      Fifty-Two Weeks Ended
                        12/31/94     1/1/94/A     12/31/94     1/1/94/A
Restaurant sales      $ 4,508,000  $ 2,471,000  $15,606,000  $ 4,516,000
Total revenues          4,973,000    2,788,000   17,244,000    5,996,000
Income (loss) before
 income taxes             108,000      (53,000)     875,000       22,000
Income tax provision       41,000           --      193,000           --
Net income (loss)          67,000      (53,000)     682,000       22,000
Earnings (loss) per share
 Primary                      .02         (.02)         .20          .01
 Fully diluted                .01         (.02)         .15          .01
Weighted average shares
 outstanding
 Primary                3,333,000    3,333,000    3,333,000    1,973,000
 Fully diluted          4,533,000    3,333,000    4,533,000    1,973,000

    Note A:  Certain reclassifications have been made to conform to
             the 1994 presentation.

CONTACT: Back Yard Burgers, Inc., Memphis

Stephen J. King, 901/367-0888