QUALITY DINING REPORTS FOURTH QUARTER AND YEAR-END RESULTS.

MISHAWAKA, Ind.--(BUSINESS WIRE)--Jan. 6, 1998--Quality Dining, Inc. (Nasdaq/NM:QDIN) today announced total revenues of $71.3 million for the fourth quarter of fiscal 1997 versus $65.0 million for the same period in fiscal 1996. For the fiscal year ended October 26, 1997, the Company reported total revenues of $302.3 million versus $237.6 million for the comparable period in fiscal 1996.

The Company reported net income of $7.6 million, or $0.46 per share, for the fourth quarter of fiscal 1997 compared with net income of $2.8 million, or $0.17 per share, for the same period in fiscal 1996. For the fiscal year ended October 26, 1997, the Company reported a net loss of $196.5 million, or $11.68 per share, compared with net income of $2.7 million, or $0.23 per share, for fiscal 1996. The per share amount for fiscal 1997 reflects a 41.9% increase in weighted average shares outstanding over fiscal 1996.

The net income for the 12 weeks ended October 26, 1997, was primarily due to the recognition of an income tax benefit of $10.0 million related to the Company's disposition of its bagel-related businesses. The Company's pre-tax net loss was $2.4 million for the fourth quarter of fiscal 1997. The pre-tax net loss for the quarter was primarily due to the Company's bagel-related operations and bagel-related general and administrative expenses. The loss for the fiscal year was primarily due to the charges related to the Company's divestiture of the bagel-related businesses which occurred on October 20, 1997, and the losses and general and administrative expenses incurred by the Company's bagel-related operations.

Chairman, President and Chief Executive Officer Daniel B. Fitzpatrick stated, "With the divestiture of the bagel-related businesses complete, Quality Dining can now focus on the future. During fiscal 1998, we will direct our efforts towards the development of long-term value for our shareholders through focused operational execution in all of our restaurant concepts."

Quality Dining owns the Grady's American Grill, Spageddies Italian Kitchen and Papa Vino's Italian Kitchen concepts and operates Burger King restaurants and Chili's Grill & Bar restaurants as a franchisee. As of January 5, 1998, the Company operated 40 Grady's American Grill restaurants, 5 Spageddies Italian Kitchen restaurants, 3 Papa Vino's Italian Kitchen restaurants, 67 Burger King restaurants, and 28 Chili's Grill & Bar restaurants.

Except for the historical information contained herein, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: the availability and cost of the necessary capital to enable the Company to develop additional units, the availability and cost of suitable locations for new restaurants, the hiring, training and retention of skilled management and other restaurant personnel, the ability to obtain the necessary government approvals and third party consents, changes in governmental regulations, including an increase in the minimum wage; and other risk factors listed from time to time in the Company's filings with the Securities and Exchange Commission. -0-

                       QUALITY DINING, INC.
                    Unaudited Financial Highlights
               (in thousands, except per share amounts)

                                   12 Weeks Ended     52 Weeks Ended
                                  Oct. 26, Oct. 27,  Oct. 26, Oct. 27,
Revenues:                           1997     1996      1997     1996
  Restaurant sales:
     Gradys American Grill       $ 18,581 $ 20,661  $ 85,403 $ 85,101
     Burger King                   18,390   17,458    74,616   70,987
     Chilis Grill & Bar            12,938   11,022    54,277   41,913
     Brueggers Bagel Bakery        17,036   11,008    64,928   25,967
     Italian Dining Division        3,493    2,295    12,973    8,388
           Total restaurant sales  70,438   62,444   292,197  232,356

  Franchise-related revenue           865    2,551    10,055    5,274
           Total revenues          71,303   64,995   302,252  237,630
Operating expenses:
  Restaurant operating expenses:
     Food and beverage             20,992   19,402    88,629   72,201
     Payroll and benefits          20,768   18,027    87,905   66,176
     Depreciation and amortization  4,291    3,514    17,691   11,635
     Other operating expenses      17,790   14,055    74,691   52,452
          Total restaurant operating
           expenses                63,841   54,998   268,916  202,464

  General and administrative        6,036    3,054    29,510   12,047
  Amortization of intangibles         233    1,151     3,112    2,537
  Restructuring and integration
   costs                               --       --        --    9,938
  Impairment of assets                300       --   185,300       --
  Franchised operating partner
   expense                             --       --     2,066       --
  Store closing costs                  --       --    15,513       --
          Total operating expenses 70,410   59,203   504,417  226,986

Operating income (loss)               893    5,792  (202,165)  10,644

Other income (expense):
  Interest expense                 (3,021)  (1,344)  (10,599)  (6,340)
  Gain on sale of property and
   equipment                         (178)       1       362        4
  Interest income                      63       48       221      206
  Other income (expense), net        (121)      91        32      154
          Total other expense, net (3,257)  (1,204)   (9,984)  (5,976)

Income (loss) before income taxes  (2,364)   4,588  (212,149)   4,668
Income tax provision (benefit)     (9,958)   1,768   (15,661)   1,998
  Net income (loss)              $  7,594 $  2,820 $(196,488) $ 2,670

  Net income (loss) per share    $   0.46 $   0.17 $  (11.68) $  0.23

  Weighted average number of shares
     of common stock outstanding   16,551   16,918    16,820   11,855

CONTACT: Quality Dining Inc., Mishawaka

David M. Findlay, 219/271-4600