Cucos records break-even results.

NEW ORLEANS--(BUSINESS WIRE)--May 25, 1995--Vincent J. Liuzza Jr., chairman and president of Cucos Inc., announced today that revenues and net income declined for the company's third quarter ended April 9, 1995.

Revenues declined 17.20% to $4,381,485 from $5,289,602 primarily due to there being three fewer company-owned restaurants in the third quarter of fiscal 1995 than in the same quarter of 1994. The company recorded a net income of $1,759 for the current quarter compared to a net income of $28,878 during the comparable quarter of 1994.

Sales of food and beverages during the third quarter declined to $4,223,535, down 16.4%, compared to $5,052,294 achieved in the prior year's comparable quarter. This decline was due primarily to there being three fewer company-owned restaurants open during the third quarter compared to the similar prior year period and a 3.9% decline in comparable restaurant sales.

Liuzza noted, ``the impact of the two remodels completed during the quarter and television advertising have favorably affected sales comparisons in the New Orleans market. We will be introducing several new products and will complete three additional remodels during the fourth quarter.''

Cucos is a Sonoran-style Mexican restaurant chain consisting of 15 company-owned restaurants and six franchised restaurants located primarily in the Southeastern United States. -0-

                                Cucos Inc.
                          Statement of Operations
                                Unaudited

                    12 Weeks    12 Weeks     40 Weeks      40 Weeks
                     Ended        Ended       Ended          Ended
                     4/9/95      4/10/94      4/9/95        4/10/94
REVENUES:
Sales of food and
 beverages         $4,223,535  $5,052,294  $ 14,099,663  $ 16,886,552
Franchise fees and
 royalties             90,186      79,023       313,832       328,377
Commissary, rent
 and other income      67,764     158,284       329,691       360,451
Total revenues      4,381,485   5,289,602    14,743,186    17,575,380

COST AND EXPENSES:
Cost of sales       1,108,381   1,285,063     3,641,086     4,232,946
Restaurant labor
 and benefits       1,444,178   1,727,247     4,797,910     5,731,452
Other operating
 expenses             541,038     764,004     2,182,511     2,690,365
Occupancy costs       496,101     608,573     1,659,578     2,009,402
Preopening costs            0      16,292             0       106,744
Total restaurant
 expenses           3,589,698   4,401,179    12,281,085    14,770,909

Operations and
 franchise expenses   289,246     363,172     1,881,493     1,092,397
Corporate expenses    398,435     399,984     1,342,740     1,291,928
Interest expense      102,347      96,389       312,392       298,017
Income (Loss) before
 income taxes and
 cumulative effect
 of accounting
 change                 1,759      28,878    (1,074,524)      122,129
Income taxes                0           0        45,557             0
Income (Loss) before
 cumulative effect
 of accounting
 change                 1,759      28,878    (1,120,081)      122,129
Cumulative effect of
 accounting change/a        0           0             0       152,000
Net income (loss)  $    1,759  $   28,878   $(1,120,081)  $   274,129
Weighted shares
 outstanding        2,105,528   2,204,820     2,144,308     2,182,348

INCOME (LOSS) PER SHARE:
Income (Loss) before
 cumulative effect of
 accounting change       $.00        $.01         $(.52)         $.06
Cumulative effect of
 accounting change       $.00        $.00         $ .00          $.07
Net income (loss)
 per share               $.00        $.01         $(.52)         $.13

    (a) Represents nonrecurring impact of adopting FAS 109,
Accounting for Income Taxes, during the first quarter of fiscal
1994.

    Results include 15 company-owned restaurants in fiscal 1995 and
18 company-owned restaurants in fiscal 1994.

CONTACT: Cucos Inc., New Orleans

Thomas J. Sandeman, 504/835-0306