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AU BON PAIN REPORTS THIRD QUARTER NET INCOME UP 25 PERCENT ON CONTINUED STRONG COMPARABLE RESTAURANT SALES OF 8.2 PERCENT

 BOSTON, Nov. 2 /PRNewswire/ -- Au Bon Pain Co., Inc. (NASDAQ: ABPCA) today reported that net income for its third quarter ended Oct. 2, 1993 increased 25 percent to $1,776,000, or 1c?ents per share, compared to $1,421,000, or 13 cents per share, in the 1992 third quarter. Year-to-date for the 40 weeks ended Oct. 2, 1993, net income increased 31 percent to $4,762,000, or 42 cents per share, compared to $3,639,000, or 33 cents per share.
 Revenues increased 19 percent in the third quarter of 1993 to $29.8 million from $25.0 million in the third quarter of 1992. Restaurant sales of the 5 bakery cafes opened in the fourth quarter of 1992 and the 14 bakery cafes opened throughout the first three quarters of 1993 added significantly to the third quarter, 1993 revenue. In addition, comparable restaurant sales (including Warburton's bakery cafes acquired in July, 1992) increased by 8.2 percent in the third quarter of 1993 vs. the same quarter of 1992. The third quarter, 1993 comparable sales increase was achieved despite a strong comparable restaurant sales increase registered in last year's third quarter of 6.7 percent (see Table 1). Ron Shaich, co-chairman and co-CEO, said "We are pleased with the continued strength of our same store sales, and believe that it speaks to our customers' responsiveness to the evolving Au Bon Pain concept." For the year-to-date period, revenues increased 29 percent through Oct. 2, 1993 vs. the previous year-to-date, principally due to the new bakery cafes. Comparable restaurant sales of 6.4 percent through the three quarters of 1993 also contributed to the improved revenues.
 Franchise sales and other revenues increased 32 percent to $2.3 million in the third quarter ended Oct. 2, 1993 from $1.7 million in the 1992 second quarter, due principally to greater sales of frozen dough product to franchisees and others. Year-to-date, franchise sales and other revenues increased to $6.6 million in 1993 from $5.5 million in the comparable period of 1992.
 Operating income for the third quarter of 1993 increased 23 percent to $2,990,000 from $2,432,000 in the previous year's third quarter, bringing year-to-date operating income to $8,147,000 in 1993, 32 percent above operating income of $6,172,000 for the first three quarters of 1992. Operating margin increased to 10.0 percent in the third quarter of 1993 from 9.7 percent in the same quarter of 1992, as improvements in cost of food and paper products and depreciation and amortization as a percentage of revenues more than offset higher percentage restaurant operating expenses and general and administrative expenses (see Margin Analysis). The improvement in cost of food and paper products as a percentage of total revenues was primarily due to improved efficiency in the company's frozen dough facility. Depreciation and amortization improved on a percentage basis largely due to the leveraging of the fixed costs within this area. The increase in percentage restaurant operating expenses was due principally to higher controllable expenses, including utilities, and to increases in payroll tax rates vs. the 1992 third quarter.
 Year-to-date through the end of the third quarter of 1993, 14 new company-operated bakery cafes and four new franchised bakery cafes have been opened. Since the end of the quarter, our Chilean franchisee has opened the first Au Bon Pain bakery cafe in Santiago, Chile, with a second cafe under construction.
 AU BON PAIN CO., INC.
 Comparable Restaurant Sales
 Company-Operated Restaurants
 1992 1993
 Q1 Q2 Q3 Q4 Q1 Q2 Q3
 7.4 pct 10.7 pct 6.7 pct 6.9 pct 3.5 pct 6.9 pct 8.2 pct
 Q3, 1993
 P8 P9 P10
 9.7 pct 8.0 pct 6.9 pct
 Note: Beginning with Q3, 1993, includes the Warburton's bakery cafes purchased in July 1992.
 AU BON PAIN CO., INC.
 Consolidated Statements of Operations
 (unaudited)
 For the 12 weeks ended For the 40 weeks ended
 Oct. 2, Oct. 3, Oct. 2, Oct. 3,
 1993 1992 1993 1992
 Revenues:
 Restaurant sales $27,518,983 $23,266,439 $84,657,307 $65,536,897
 Franchise sales
 and other
 revenues 2,252,528 1,701,702 6,602,533 5,451,256
 Total 29,771,511 24,968,141 91,259,840 70,988,153
 Cost and expenses:
 Cost of food &
 paper products 9,415,362 8,064,384 29,556,514 23,336,527
 Restaurant operating
 expenses:
 Labor 7,041,660 5,859,484 22,085,376 16,823,471
 Occupancy 3,778,868 3,154,340 10,928,099 8,323,674
 Other 3,177,780 2,535,037 9,347,139 7,388,887
 Total 13,998,308 11,548,861 42,360,614 32,536,032
 Depreciation and
 amortization 1,806,285 1,670,836 6,064,054 4,918,641
 General and
 administrative 1,561,165 1,251,646 5,131,932 4,024,958
 Total 26,781,120 22,535,727 83,113,114 64,816,158
 Operating income 2,990,391 2,432,414 8,146,726 6,171,995
 Interest expense, net 4,894 15,956 50,105 79,274
 Other (income), net (47,581) (25,158) (75,958) (212,435)
 Minority interest 22,879 40,663 81,916 180,540
 Income before provision
 for income taxes 3,010,199 2,400,953 8,090,663 6,124,616
 Provision for income
 taxes 1,234,500 979,500 3,329,000 2,486,000
 Net income $1,775,699 $1,421,453 $4,761,663 $3,638,616
 Net income per
 common share 16 cents 13 cents 42 cents 33 cents
 Weighted average
 number of common
 and common equiv-
 alent shares
 outstanding 11,336,214 11,244,529 11,364,377 10,909,909
 AU BON PAIN CO., INC.
 Consolidated Statements of Operations (unaudited)
 Margin Analysis
 For the 12 weeks ended For the 40 weeks ended
 Oct.2, Oct. 3, Oct. 2, Oct. 3,
 1993 1992 1993 1992
 Revenues:
 Restaurant sales 92.4 pct 93.2 pct 92.8 pct 92.3 pct
 Franchise sales
 and other
 revenues 7.6 pct 6.8 pct 7.2 pct 7.7 pct
 Total 100.0 pct 100.0 pct 100.0 pct 100.0 pct
 Cost and expenses:
 Cost of food & paper
 products 31.6 pct 32.3 pct 32.4 pct 32.9 pct
 Restaurant operating
 expenses:
 Labor 23.7 23.5 24.2 23.7
 Occupancy 12.7 12.6 12.0 11.7
 Other 10.7 10.2 10.2 10.4
 Total 47.1 46.3 46.4 45.8
 Depreciation and
 amortization 6.1 6.7 6.7 6.9
 General and
 administrative 5.2 5.0 5.6 5.7
 Total 90.0 90.3 91.1 91.3
 Operating income 10.0 9.7 8.9 8.7
 Interest expense, net --- --- --- .1
 Other (income), net (.2) (.1) (.1) (.3)
 Minority interest .1 .2 .1 .3
 Income before provision
 for inc. taxes 10.1 9.6 8.9 8.6
 Provision for income
 taxes 4.1 3.9 3.7 3.5
 Net income 6.0 pct 5.7 pct 5.2 pct 5.1 pct
 -0- 11/2/93
 /CONTACT: Tony Carroll, chief financial officer of Au Bon Pain Co., 617-423-2100/
 (ABPCA)


CO: Au Bon Pain Co., Inc. ST: Massachusetts IN: LEI SU: ERN

JL-DJ -- NE010 -- 9780 11/02/93 16:02 EST
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