Boston Chicken reports 120% increase in net income; earnings per share of $.24.

GOLDEN, COLO.--(BUSINESS WIRE)--May 13, 1996--Boston Chicken, Inc. (NASDAQ-NMS:BOST) today reported financial results for its first quarter ended April 21, 1996 (sixteen weeks), compared with results of the comparable period ended April 16, 1995. Highlights include:

Systemwide gross revenue increased 66% to $311,798,000 from $187,448,000.

Operating income increased 111% to $28,547,000 from $13,527,000.

Net income increased 120% to $15,649,000 from $7,116,000.

Earnings per share increased 60% to $.24 from $.15, even though weighted average shares outstanding increased 33% due to financing and acquisition activity.

Boston Chicken Inc.'s total revenue increased to $47,347,000 in the first quarter of 1996, from $40,107,000 in the first quarter of 1995. Royalties and franchise-related revenue increased 86% to $46,033,000 from $24,789,000 primarily due to an increase in royalties associated with higher systemwide sales and an increase in interest income generated on loans made to area developers. Revenue from company- operated stores was $1,314,000 in the quarter compared with $15,318,000 in the first quarter of 1995, reflecting the lower average number of company-operated stores in the 1996 period (3 in 1996, versus 46 in 1995) as the company concluded its practice of opening stores in new markets to seed development and then transferring those stores to area developers. At the end of the first quarter, there were a total of 894 Boston Market stores open systemwide.

Mark Stephens, vice chairman and chief financial officer, said, "The Boston Market system is very focused on store performance and operations and systemwide performance has begun to reflect that focus. Weekly per store average revenue increased 10% to $22,762 versus the same period last year, despite the severe winter weather that affected many of our best markets. Excluding the first four weeks of the year, the period most affected by the weather, weekly per store average revenue was $23,489. Store cash flow also improved nicely, even though many of the initiatives underway are expected to have a more significant impact later in the year."

"During the quarter, we launched two key sales drivers," said Larry Zwain, president and chief executive officer of Boston Market. "In January, we began television advertising of our new Boston CarverTM sandwiches and consumer response has been great. This successful introduction has helped our lunch business grow from about 35% to just over 40% of sales. We also began television advertising of our Boston MarketTM Feast in selected markets. Where advertised, family meal unit sales were up significantly, and nearly half of those who purchased the Market Feast were first time buyers of our family meals. We also further capitalized on the success of our Hearth HoneyTM ham by offering whole and half hams and banquet-sized side dishes for Easter, resulting in the second highest weekly per store average sales ever for the Boston Market system."

Scott Beck, co-chairman and chief executive officer of Boston Chicken, said, "A significant milestone during the quarter was the Mid-Atlantic transaction. With nearly 80 stores in the Philadelphia market, Mid-Atlantic combined a unique level of development maturity with intense operational focus, yielding a very attractive business. The value of our conversion option really paid off, as these stores, which will now be classified as company stores, are already having an positive contribution to our second quarter earnings."

"We're also very excited about the potential for our shareholders from our involvement with Einstein Bros. Bagels," Beck added. "During the quarter, Einstein Bros. acquired Noah's New York Bagels, the leading West Coast bagel retailer, with 50 stores in California, Washington and Oregon." Einstein Bros. Bagels, Inc., funded in part by a convertible loan from Boston Chicken, now operates and franchises nearly 145 stores in 14 states. Beck continued, "Noah's has tremendous brand awareness and customer loyalty on the West Coast. Their commitment to product quality, service and community involvement is very similar to that of Einstein's. They also have a premier development organization, with a substantial pipeline of stores underway. Both concepts have significant development momentum and the Einstein Bros. system is well on its way to having between 275 and 300 stores opened by the end of 1996."

Boston Chicken, Inc. franchises and operates Boston Market food service stores that specialize in homestyle meals featuring rotisserie-roasted Boston Chicken. and turkey breast, Hearth Honey hams, double-sauced meat loaf, hot, hand- carved Boston Carver sandwiches and fresh vegetables, salads and other side dishes, including mashed potatoes made from scratch. Boston Market meals combine the freshness and quality of traditional home cooking with convenience and value. As of May 13, 1996, there were 898 Boston Market stores in 37 states and the District of Columbia.

Certain statements in this release constitute "forward-looking statements" and involve risks, uncertainties, and other factors which may cause the actual performance of Boston Chicken, its area developers, Boston Market stores, and Einstein Bros. Bagels, Inc. to be materially different from the performance expressed or implied by such statements. Such factors include, among others: competition; success of operating initiatives; area developers' adherence to development schedules; advertising and promotional efforts; adverse publicity; changes in business strategy or development plans; availability and terms of capital; regional weather conditions; and other factors set forth in the Company's 10-K. The success of the Company is dependent on its area developers and franchisees and the manner in which they operate and develop Boston Market stores. -0-

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

                              Apr. 16  Apr. 21
                               1995     1996
                              _______  _______
Revenue:
  Royalties and
    franchise-related fees... $24,789  $46,033
  Company-operated stores....  15,318    1,314
                               ______   ______
    Total revenue............  40,107   47,347

Cost and Expenses:
  Cost of products sold......   5,790      480
  Salaries and benefits......   8,548    7,509
  General and administrative.  12,242   10,811
                               ______   ______
    Total cost and expenses..  26,580   18,800
                               ______   ______

Income from Operations.......  13,527   28,547

Other Expense:
  Interest expense, net......  (2,057)  (2,900)
  Other income, net..........      28      109
                               ______   ______
    Total other expense......  (2,029)  (2,791)
                               ______   ______
Income Before Income Taxes...  11,498   25,756
Income Taxes.................   4,382   10,107
                               ______   ______
Net Income .................. $ 7,116 $ 15,649
                               ======   ======
Net Income per Common
 and Equivalent Share........ $  0.15  $  0.24
                               ======   ======
Weighted Average Number of
 Common and Equivalent
 Shares Outstanding..........  48,566   64,317
                               ======   ======
----------
BOSTON CHICKEN, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
                                        12/31/95    4/21/96
                                        ________   _________
                                                 (Unaudited)
ASSETS
______
Current Assets:
  Cash and cash equivalents...........$  310,436 $  155,483
  Accounts receivable, net............    13,445     14,002
  Due from affiliates.................     9,614      9,741
  Notes receivable....................     5,462     38,497
  Prepaid expenses and other
    current assets....................     1,536      2,717
  Deferred income taxes...............     3,322      3,841
                                          ______     ______
    Total current assets..............   343,815    224,281
Property and Equipment, net...........   258,550    265,521
Notes Receivable......................   450,572    671,504
Deferred Financing Costs, net.........    15,745     17,985
Other Assets, net.....................     5,195      8,266
                                         _______    _______
    Total assets......................$1,073,877 $1,187,557
                                         =======    =======
LIABILITIES AND STOCKHOLDERS  EQUITY
____________________________________
Current Liabilities:
  Accounts payable....................$   12,292 $    7,388
  Accrued expenses....................     9,095      8,911
  Deferred franchise revenue..........     8,945      9,229
                                         _______    _______
    Total current liabilities.........    30,332     25,528

Deferred Franchise Revenue............     2,072      3,940
Liquid Yield Option Notes.............   177,306    173,024
Convertible Subordinated Debt.........   129,872    129,862
Deferred Income Taxes.................    16,631     18,685
Other Noncurrent Liabilities..........       833        726
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:
    59,121,301 in 1996, and
    62,624,702 in 1995................       591        626
  Additional paid-in capital..........   675,611    778,888
  Retained Earnings...................    40,629     56,278
                                         _______    _______
                                         716,831    835,792
                                         _______    _______
    Total liabilities and
      stockholders  equity............$1,073,877 $1,187,557
                                         =======    =======

CONTACT: Boston Chicken, Inc., Golden

Analyst Contact: Melissa Marsden, 303-384-5652

Media Contact: Karen Rugen, 303-384-5076