Back Yard Burgers Announces Second Quarter and Year-to-Date 2005 Results.

MEMPHIS, Tenn. -- Back Yard Burgers, Inc. (Nasdaq SmallCap: BYBI) today announced results for the second quarter of 2005.

--Total revenues for the 13-week period ended July 2, 2005, were $10,737,000 compared with total revenues of $10,659,000 for the 13-week period ended July 3, 2004. Royalty and advertising fees rose by approximately 30% over the year-earlier period due to a net increase of 21 franchised restaurants since July 3, 2004. Franchise and area development fees increased to $146,000 from $121,000 in the year-earlier period due to the opening of seven franchised restaurants during the 13-week period ended July 2, 2005, compared with six franchised restaurant openings in the year-earlier period. These increases were partially offset by a 1.7% decrease in same-store sales for Company-operated restaurants from the comparable period in 2004.

--Net income for the 13-week period ended July 2, 2005, decreased 14.8% to $404,000, or $0.08 per diluted share, from $474,000, or $0.09 per diluted share, in the year-earlier period. The decrease was primarily due to the decline in same-store sales at Company-operated restaurants coupled with a 14% increase in the cost of beef during the 13-week period ended July 2, 2005, as well as increased spending for general and administrative expenses, including corporate personnel, professional and consulting fees and travel relating to franchised restaurant support.

--For the second quarter of 2005, same-store sales for Company-operated restaurants decreased 1.7% from the comparable period in 2004, and same-store sales for franchised restaurants declined 1.0% for the same period. Same-store sales for the second quarter of 2005 for both Company-operated and franchised restaurants were positively affected by approximately 0.4% due to the fact that Easter Sunday occurred during the first quarter of 2005 and during the second quarter of 2004. Year-to-date same-store sales for 2005 decreased 2.2% for Company-operated restaurants and decreased 0.7% for franchised restaurants versus the comparable period in 2004.

--Total revenues for the 26-week period ended July 2, 2005, totaled $20,414,000 compared with $20,142,000 in the prior-year period. Net income for the 26-week period ended July 2, 2005, was $241,000, or $0.05 per diluted share, compared with $741,000, or $0.14 per diluted share, in the prior-year period. Net income for the 26-week period ended July 2, 2005, included a non-cash charge of approximately $358,000 (net of a tax benefit of $153,000) relating to the extension of the exercise date of certain stock options upon the resignation of an officer/director on January 7, 2005.

--Unit activity for the quarter included the opening of seven franchised stores and the closing of one Company-operated store. As of July 2, 2005, the Company's restaurant system comprised 160 units, including 41 Company-operated stores and 119 franchised stores. Expansion plans for the remainder of 2005 include the opening of three Company-operated stores and 20 franchised stores.

Back Yard Burgers operates and franchises quick-service restaurants in 19 states, primarily in markets throughout the Southeast region of the United States. The restaurants specialize in charbroiled, freshly prepared, great-tasting food. As its name implies, Back Yard Burgers strives to offer the same high-quality ingredients and special care typified by outdoor grilling in the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and chicken sandwiches - charbroiled over an open flame, fresh salads, chili and other specialty items, including hand-dipped milkshakes, fresh-made lemonade and fresh-baked cobblers.

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding the number of Company-operated and franchised restaurants the Company anticipates opening during fiscal year 2005. Forward-looking statements are based upon estimates, projections, beliefs and assumptions of management at the time of such statements and should not be viewed as guarantees of future performance. Such forward-looking information involves important risks and uncertainties that could significantly impact anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements by or on behalf of the Company. The factors that could cause our actual results to differ materially, many of which are beyond our control, include, but are not limited to, the following: delays in opening new stores or outlets because of weather, local permitting, and the availability and cost of land and construction; increases in competition and competitive discounting; increases in minimum wage and other operating costs; shortages in raw food products; volatility of commodity prices; consumer preferences, spending patterns and demographic trends; the possibility of unforeseen events affecting the industry generally, and other risks described from time to time in our periodic reports filed with the Securities and Exchange Commission. Back Yard Burgers, Inc. disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise.

BACK YARD BURGERS, INC.
            Unaudited Consolidated Statements of Operations
               (in thousands, except per share amounts)

                         Thirteen Weeks Ended   Twenty-Six Weeks Ended
                         07/02/05    07/03/04    07/02/05    07/03/04
                         --------    --------    --------    --------
                                    (restated)              (restated)
                                        (1)                     (1)
Revenues:
  Restaurant sales       $  9,072    $  9,323    $ 17,280    $ 17,757
  Franchise and area
    development fees          146         121         311         209
  Royalty fees              1,038         793       1,969       1,452
  Advertising fees            271         205         515         370
  Other                       210         217         339         354
                         --------    --------    --------    --------
    Total revenues         10,737      10,659      20,414      20,142
                         --------    --------    --------    --------
Expenses:
  Cost of restaurant
    sales                   2,951       2,932       5,590       5,566
  Restaurant operating
    expenses                4,275       4,342       8,270       8,418
  General and
    administrative          1,579       1,307       3,633       2,506
  Advertising                 713         720       1,267       1,234
  Depreciation and
    amortization              515         526       1,078       1,050
                         --------    --------    --------    --------
    Total expenses         10,033       9,827      19,838      18,774
                         --------    --------    --------    --------

  Operating income            704         832         576       1,368

Interest income                 7           2          13           3
Interest expense             (104)       (120)       (212)       (246)
Other, net                    (23)        (24)        (44)        (46)
                         --------    --------    --------    --------
  Income before income
    taxes                     584         690         333       1,079
Income tax provision          180         216          92         338
                         --------    --------    --------    --------
Net income               $    404    $    474    $    241    $    741
                         ========    ========    ========    ========
Income per share:
  Basic                  $   0.08    $   0.10    $   0.05    $   0.16
                         ========    ========    ========    ========
  Diluted                $   0.08    $   0.09    $   0.05    $   0.14
                         ========    ========    ========    ========

Weighted average number
  of common shares and
  common equivalent
  shares outstanding:
    Basic                   4,806       4,775       4,798       4,770
                         ========    ========    ========    ========
    Diluted                 5,107       5,142       5,121       5,151
                         ========    ========    ========    ========

(1)  Restated from previously reported financial statements to reflect
     certain adjustments for lease accounting as discussed in Note 3
     to the Consolidated Financial Statements included in the
     Company's 2004 Form 10-K.