BACK YARD BURGERS REPORTS THIRD QUARTER RESULTS.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 19, 1995--Back Yard Burgers, Inc. (Nasdaq Small Cap:BYBI; CHX:BYB) today announced results for the third quarter and thirty-nine weeks ended September 30, 1995.

Total revenues for the thirteen weeks ended September 30, 1995, rose 26% to $5,970,000 from $4,740,000 in the year-earlier period, reflecting primarily the addition of ten new company-owned stores in the past year. Despite increased sales, the Company reported a loss for the quarter of $17,000 or $.00 per share compared with net income of $197,000 or $.04 per share in the same period last year.

For the thirty-nine weeks ended September 30, 1995, total revenues rose 39% to $17,088,000 compared with $12,271,000 for the prior year. Net income was $13,000 or $.00 per share compared with $615,000 or $.14 per share in the year-earlier period.

Commenting on the report, Lattimore M. Michael, Chairman and Chief Executive Officer, explained that the Company's loss for the period reflected lower-than-expected sales as the "burger price wars" continued. Michael said, "Although same-store sales declined during the third quarter, the decline was not as great as that experienced during the second quarter of the year. We are continuing our focus on restaurant operations and marketing programs to restore sales growth to acceptable levels."

Same-store sales declined 10.7% for both the third quarter and year-to-date periods. On a systemwide basis, including franchised units, same-store sales declined 6.9% and 6.1%, respectively, for the third quarter and year-to-date periods.

Michael also noted that, because of the lower sales, restaurant operating expenses of a fixed nature, as a percentage of sales, continued to be disproportionately higher in the third quarter than in the same period last year. These higher expenses at the store level, combined with increased interest expense related to the opening of additional stores during the past year, resulted in a slight loss in the third quarter and lower earnings for the year to date.

As of September 30, 1995, the Company's restaurant system comprised 71 units, including 32 company-operated stores and 39 franchised stores.

Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 15 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. -0-

                       BACK YARD BURGERS, INC.
                    Unaudited Financial Highlights

                       Thirteen Weeks Ended   Thirty-Nine Weeks Ended
                        9/30/95     10/1/94      9/30/95     10/1/94

Restaurant sales      $5,521,000  $4,273,000  $15,902,000 $11,098,000
Total revenues         5,970,000   4,740,000   17,088,000  12,271,000
Income (loss) before
   income taxes           (9,000)    314,000       41,000     767,000
Income tax provision       8,000     117,000       28,000     152,000

Net income (loss)      $ (17,000)  $ 197,000    $  13,000   $ 615,000
Earnings (loss) per share:
   Primary             $    (.00)  $     .06    $     .00   $     .18
   Fully diluted       $    (.00)  $     .04    $     .00   $     .14

Weighted average shares
 outstanding:
   Primary             4,533,000   3,333,000    4,533,000   3,333,000
   Fully diluted       4,533,000   4,544,000    4,533,000   4,544,000

CONTACT: Back Yard Burgers, Inc., Memphis

Stephen J. King, 901/367-0888