Cucos Announces Second Quarter Results.

NEW ORLEANS--(BUSINESS WIRE)--Feb. 27, 1997--Cucos, Inc. (NASDAQ-CUCO), announced today that in the second quarter of fiscal 1997, which ended Jan. 12, 1997, the Company recorded a loss of $98,673 compared to a small profit in the prior year. For the first half of fiscal 1997, the Company lost $92,563 compared to a profit of $9,064 during the first half of fiscal 1996. During the quarter, sales per comparable restaurant decreased 1.3%.

"We were disappointed by the loss during the quarter and have adjusted our advertising strategy to address the sales shortfall. Our remodeling program has been completed in all but one location, and we expect to see the benefits from those efforts through the remainder of the year and beyond," noted Mr. Vincent J. Liuzza, Jr., Chairman of the Company.

The Company entered into a lease for a new company-owned restaurant in Meridian, Mississippi, which will open during the last quarter of this calender year. In addition, a new franchised restaurant opened in Des Moines, Iowa, on Jan. 23, 1997.

Cucos currently operates fifteen company-owned and franchises seven full-service Mexican restaurants located in the Southeastern Unites States. -0-

                              Cucos, Inc.
                       Statement of Operations
                               Unaudited

                 12 Weeks       12 Weeks       28 Weeks    28 Weeks
                   Ended          Ended          Ended       Ended
               Jan. 12, 1997  Jan. 14, 1996 Jan. 12, 1997 Jan. 14, 1996
Revenues:
Sales of Food
 and Beverages   $ 4,617,337   $ 4,623,681   $11,099,759   $10,834,073
Franchise Fees
 and Royalties        23,835        43,845        60,196       100,867
Commissary, Rent &
 Other Income        131,529        72,586       278,331       174,088
Total Revenues     4,772,701     4,740,012    11,438,286    11,109,028

Costs and Expenses:
Cost of Sales      1,264,016     1,256,818     3,061,383     2,901,763
Restaurant Labor
 and Benefits      1,542,052     1,547,752     3,664,690     3,581,018
Other Operating
 Expenses            691,940       727,474     1,751,681     1,793,768
Occupancy Costs      502,539       476,520     1,178,605     1,119,521
Preopening Cost
 Amortization         28,956             0        67,564             0
Total Restaurant
 Operating
 Expenses          4,029,503     4,008,564     9,723,923     9,396,070

Operations and
 Franchise
 Expenses            374,111       325,795       793,870       718,328
Corporate Expenses   368,887       305,835       779,714       766,075
Interest Expense      98,873        94,145       233,342       219,491

Income Before
 Income Taxes        (98,673)        5,673       (92,563)        9,064
Income Tax                 -             -             -             -
                   ---------     ---------      ---------    ---------
Net Income
 (Loss)          $   (98,673)  $     5,673   $   (92,563)  $     9,064

Weighted Average
 Shares and Common
 Share Equivalents
 Outstanding       2,641,730     2,641,730     2,641,730     2,641,730

Income Per Share:
 Net Income (Loss)
  Per Share           ($0.04)         $.00        ($0.04)         $.00

CONTACT: Cucos, Inc., New Orleans 

Lee W. Randall, 504/835-0306