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CUCOS ANNOUNCES FIRST QUARTER EARNINGS FOR FISCAL 1994

 NEW ORLEANS, Dec. 10 /PRNewswire/ -- Vincent J. Liuzza Jr., chairman and president of Cucos Inc. (NASDAQ: CUCO), announced increased revenues and earnings for the company's first quarter ended Oct. 24.
 Revenues advanced 21.7 percent to $7,169,816 from $5,891,232, and income before the cumulative effect of accounting change increased 22.9 percent to $57,498 ($.03 per share) from $46,782 ($.02 per share) recorded during the comparable prior year quarter. During the quarter the company adopted Financial Accounting Standards Board No. 109, Accounting for Income Taxes, which resulted in a non-recurring income adjustment of $152,000 or $.07 per share. Net income after giving effect to this adjustment was $209,498 ($.10 per share) compared to $46,782 ($.02 per share) in 1993.
 "During the first quarter the company invested heavily in media campaigns in Georgia and Florida to build long-term customer awareness. The short-term cost of these campaigns, in conjunction with a general softening of sales, held operating earnings down for the quarter," noted Liuzza. Comparable sales per restaurant advanced about 1.0 percent compared to 3.6 percent for all of fiscal 1993. The major reason for the slowing in growth of comparable sales per restaurant is the opening of 13 direct and indirect competitors in the company's markets during the first quarter. Most new restaurants experience high opening sales volume as customers try the new concepts. "As a result, we may experience a decline in comparable sales per restaurant during the second quarter," stated Liuzza.
 In other developments since the end of the quarter, a new franchised restaurant opened in New Orleans, while two franchised restaurants closed.
 Cucos is a Sonoran-style Mexican restaurant chain consisting of 18 company-owned restaurants and 12 franchised restaurants located primarily in the southeastern United States.
 CUCOS INC.
 Statement of Operations
 Unaudited
 16 weeks ended 10/24/93 10/18/92
 Revenues:
 Sales of food and beverages $ 6,924,942 $5,641,238
 Franchise fees and royalties 113,606 165,892
 Commissary, rent & other income 131,268 84,102
 Total revenues 7,169,816 5,891,232
 Costs and expenses:
 Cost of sales 1,708,202 1,419,848
 Restaurant labor and benefits 2,322,589 1,884,790
 Other operating expenses 1,129,792 969,307
 Occupancy cost 802,885 621,928
 Preopening costs 68,753 33,771
 Total restaurant expenses 6,032,221 4,929,644
 Operations and franchise expenses 427,507 369,085
 Corporate expenses 538,638 462,907
 Interest expense 113,952 82,814
 Income before income taxes and cumulative
 effect of accounting change 57,498 46,782
 Income taxes --- ---
 Income before cumulative effect of
 accounting change(a) 57,498 46,782
 Cumulative effect of acctg. change(a) 152,000 ---
 Net income $ 209,498 $ 46,782
 Weighted shares outstanding 2,140,297 2,113,747
 Income per share:
 Income before cumulative effect of
 accounting change $ .03 $ .02
 Cumulative effect of acctg. change(a) .07 ---
 Net income per share $ .10 $ .02
 (a) Represents the adoption of FAS 109 during the first quarter
 of fiscal 1994.
 -0- 12/10/93
 /CONTACT: Thomas J. Sandeman, vice president-Finance, Cucos, 504-835-0306/
 (CUCO)


CO: Cucos Inc. ST: Louisiana IN: LEI SU: ERN

BR-BN -- AT003 -- 2629 12/10/93 12:26 EST
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Publication:PR Newswire
Date:Dec 10, 1993
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