BOSTON CHICKEN REPORTS 301% INCREASE IN FOURTH QUARTER NET INCOME; FISCAL 1994 NET INCOME UP NEARLY TEN-FOLD.

GOLDEN, Colo.--(BUSINESS WIRE)--Feb. 6, 1995--Boston Chicken, Inc. (NASDAQ-NMS:BOST) today reported financial results for the fourth quarter and fiscal year ended December 25, 1994. Highlights include:

Fourth quarter: o Net earnings increased 301% to $5,550,000, or $.12 per share, from

$1,384,000, or $.04 per share in 1993.

o Operating income increased 524% to $9,410,000, from operating income

of $1,508,000 in the fourth quarter of 1993.

o Systemwide store revenue more than doubled to $116,807,000.

Fiscal year: o Net earnings increased 882% to $16,173,000, or $.38 per share, from

net earnings of $1,647,000, or $.06 per share in 1993.

o Operating income, excluding provisions for relocation totaling

$5,097,000 in the year, increased to $29,708,000, from operating

income of $1,927,000 in 1993.

o Systemwide store revenue increased to $383,691,000.

The company ended fiscal 1994 with 534 stores open compared to 217 stores open at the end of fiscal 1993. During the fourth quarter of 1994, 97 stores were added systemwide of which nearly one-third were added during the last two weeks of the quarter. "We ended fiscal 1994 very strongly -- exceeding both our original goal of 450 total stores and our revised goal of 525 stores open at fiscal year end. I couldn't be more pleased with the quality of sites added in 1994. Great real estate plays a key role in our successful evolution of the concept, Scott Beck, chairman," said.

"Having achieved development momentum during 1994, we were able to shift our systemwide focus to operations and marketing," commented Saad Nadhir, vice chairman. "While we expect to open at least 325 new stores in 1995, we are also evolving the concept in ways which we expect will broaden our leadership position in the category. During the fourth quarter, we introduced our first new products since 1992. More importantly, we initiated testing of three new entrees -- roasted turkey, baked ham and meatloaf -- which have been enthusiastically received by our customers. These entrees are designed to drive frequency in our primary occasion -- dinner home meal replacement. Also during the fourth quarter, we began testing new menu items to expand our existing lunch business. These products include a line of sandwiches, soups and salads which will be available in various combinations at attractive price points," added Mr. Nadhir.

The company also stated that its focus on operations has yielded several promising initiatives. Initial tests in Chicago of the company's new flagship production technique are confirming expectations that significant improvements in store level performance are possible. In addition to flagship, the company's procurement initiatives, such as its recent agreement with SYSCO, provide additional opportunities to reduce store-level costs. The SYSCO agreement utilizes an activity-based cost structure that provides economic incentives for Boston Chicken stores that place orders, schedule deliveries and make payments more efficiently.

Mark Stephens, chief financial officer, said, "During the quarter, we significantly enhanced Boston Chicken's systemwide capital base by assisting our financed area developers in completing a $75 million equipment leasing program. This financing provides an additional source of funding for the development of new stores and represents the first step for our financed area developers into the senior credit markets. In addition, early in fiscal 1995, Mid-Atlantic Restaurant Systems L.P., our financed area developer in Philadelphia, secured a $30 million, multi-year senior credit facility that is expected to provide the capital necessary to complete their development program. These financings demonstrate the confidence of a number of financial institutions in the Boston Chicken concept."

Total company revenue was $27,165,000 in the fourth quarter compared with $14,299,000 in 1993. Royalties and franchise-related fees increased nearly four-fold to $18,493,000 from $4,691,000 in 1993, primarily due to an increase in royalties associated with higher systemwide sales, an increase in interest income generated on loans made to financed area developers, and an increase in franchise fees related to the accelerated rate of new store openings. Franchise fees accounted for less than 14% of the company's total revenue. Revenue from company-operated stores was $8,672,000 in the quarter compared with $9,608,000 in the fourth quarter of 1993, primarily reflecting fewer average weeks of operation for company stores operated during the period.

For the fiscal year, total company revenue was up 126% to $96,151,000 from $42,530,000 in 1993. Royalties and franchise-related fees increased from $12,681,000 to $55,235,000 in 1994, while revenue from company operated stores was up from $29,849,000 to $40,916,000.

Boston Chicken, Inc. operates and franchises food service stores that specialize in complete meals featuring rotisserie roasted chicken and fresh vegetables, salads and other side dishes, including mashed potatoes made from scratch. Boston Chicken meals combine the freshness and quality of traditional home cooking with convenience and value. There are currently 557 Boston Chicken stores in 30 states and the District of Columbia. -0-

BOSTON CHICKEN, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)
(Unaudited)
                                                 Fiscal
                          Quarter Ended        Year Ended
                         ________________  ________________

                         Dec. 26, Dec. 25, Dec. 26, Dec. 25,
                           1993    1994     1993     1994
                         _______  _______  _______  _______
Revenue:
  Royalties and
    franchise-related
    fees...............  $ 4,691  $18,493  $12,681  $55,235
  Company-operated
    stores.............    9,608    8,672   29,849   40,916
                          ______   ______   ______   ______
    Total revenue......   14,299   27,165   42,530   96,151

Cost and Expenses:
  Cost of products
    sold...............    3,616    3,366   11,287   15,876
  Salaries and
    benefits...........    4,786    5,757   15,437   22,637
  General and
    administrative.....    4,389    8,632   13,879   27,930
                          ______   ______   ______   ______
    Total cost and
      expenses.........   12,791   17,755   40,603   66,443
                          ______   ______   ______   ______

Income from
  Operations before
  Provision for
  Relocation...........    1,508    9,410    1,927   29,708
Provision for
  Relocation...........        -        -        -    5,097
                          ______   ______   ______   ______
Income from
  Operations...........    1,508    9,410    1,927   24,611
Other Expense:
  Interest expense, net      (79)  (1,274)    (440)  (4,235)
  Other income(expense), net (45)      19      160       74
                          ______   ______   ______   ______
    Total other
       expense ........     (124)  (1,255)    (280)  (4,161)
                           ______   ______   ______   ______
Income before
  Income Taxes.........    1,384    8,155    1,647   20,450
Income Taxes...........        -    2,605        -    4,277
                          ______   ______   ______   ______
Net Income.............  $ 1,384  $ 5,550  $ 1,647 $ 16,173
                          ======   ======   ======   ======

Net Income
  Per Common and
  Equivalent Share.....  $  0.04  $  0.12  $  0.06  $  0.38
                          ======   ======   ======   ======
Weighted Average
  Number of Common and
  Equivalent Shares
  Outstanding...........   36,428   47,750   32,667   42,861
                          ======   ======   ======   ======

BOSTON CHICKEN, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

                                           Oct. 2,  Dec. 25,
                                            1994     1994
                                           ______ _________
ASSETS
______
Current Assets:
  Cash and cash equivalents...........  $ 30,092   $ 25,304
  Accounts receivable, net............     7,104      6,540
  Due from affiliates, net............     7,015      6,462
  Notes receivable....................     2,409     16,906
  Prepaid expenses and other
    current assets....................     1,367      2,282
  Deferred income taxes...............     1,683      1,835
                                          ______     ______
    Total current assets..............    49,670     59,329

Property and Equipment, net...........   134,735    163,314
Notes Receivable......................   205,495    185,594
Deferred Financing Costs..............     4,751      8,346
Other Assets..........................     6,220     10,399
                   _______    _______
    Total assets......................  $400,871   $426,982
                                         =======    =======

LIABILITIES AND STOCKHOLDERS  EQUITY
____________________________________
Current Liabilities:
  Accounts payable....................  $  9,877   $ 15,188
  Accrued expenses....................     6,133      6,587
  Deferred franchise revenue..........     6,560      5,505
                                         _______    _______
    Total current liabilities.........    22,570     27,280

Deferred Franchise Revenue............     7,546      5,815
Convertible Subordinated Debt.........   130,000    130,000
Other Noncurrent Liabilities..........     1,294      1,061
Deferred Income Taxes.................       562      3,011
Commitments and Contingencies
Stockholders  Equity:
  Preferred Stock--$.01 par value;
    authorized 20,000,000 shares; no
    shares issued and outstanding.....         -          -
  Common Stock--$.01 par value;
    authorized 100,000,000 shares;
    issued and outstanding:
      42,437,956 shares at October 2,
      and 44,700,010 shares
      at December 25                         424        447
  Additional paid-in capital..........   236,955    252,298
  Retained Earnings...................     1,520      7,070
                                         _______    _______
                                         238,899    259,815
                                         _______    _______
    Total liabilities and
      stockholders  equity............  $400,871   $426,982
                                         =======    =======

CONTACT: Boston Chicken, Inc., Golden

Melissa Marsden, [phone]