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DAKA INTERNATIONAL, INC. REPORTS 29 PERCENT INCREASE IN FIRST QUARTER NET INCOME

 DANVERS, Mass., Oct. 28 /PRNewswire/ -- DAKA International, Inc. (NASDAQ: DKAI), reported a 29 percent increase in net income during the quarter ended Oct. 2, 1993, as compared to the comparable quarter of last year. Net income for the first quarter was $1,161,000 on revenues of $55,686,000 as compared to net income of $899,000 on revenues of $41,627,000 for the first quarter of last year.
 Fully diluted earnings per share for the quarter increased 13 percent to $.18 as compared to $.16 during the first quarter of last year despite a 54 percent increase in the weighted average number of outstanding shares which is the result of the sale of common stock and convertible subordinated notes in March 1993.
 Income from operations in the foodservice segment increased 20.1 percent to $5,062,000 on revenues of $31,785,000 during the quarter as compared to income from operations of $4,216,000 on revenues of $21,783,000 during the comparable quarter of last year. The increase in income from operations is due to a combination of an increase in sales at existing foodservice facilities, sales from 15 new contracts and sales associated with the contracts acquired from Service America Corporation on July 30, 1993.
 Income from restaurant operations increased 47.3 percent to $2,974,000 during the quarter as compared to $2,018,000 during the comparable quarter of last year. The increase in income from restaurant operations was primarily due to a 2 percent increase in comparable restaurant sales, improved operating margins, the contribution from the six restaurants in the Atlanta market acquired during the fourth quarter of fiscal 1993 and a positive contribution from the three new restaurants opened during the fourth quarter of fiscal 1993. The improvement in income from restaurant operations was offset, in part, by a $234,000 decrease in franchising income due to the inclusion of a one-time development fee in franchising income during the first quarter of last year.
 "I am extremely pleased with our performance during the quarter," said William H. Baumhauer, chairman and chief executive officer of DAKA International, Inc. "In addition to achieving a 34 percent increase in revenues and a 37 percent increase in pretax income, we have made excellent progress in our integration of the newly acquired foodservice contracts."
 DAKA International, Inc. owns Fuddruckers, Inc. which operates or franchises 140 restaurants in the United States, Argentina, Canada and Mexico and Daka, Inc., a leading provider of foodservice management in the United States serving over 575 foodservice facilities.
 DAKA INTERNATIONAL, INC.
 Summary of Operating Results
 10/2/93 9/28/92 Increase (Decrease)
 $ Percent
 Revenues:
 Foodservice segment $31,785 $21,783 $10,002 45.9
 Restaurant segment 23,901 19,844 4,057 20.4
 Total revenues 55,686 41,627 14,059 33.8
 Foodservice managed volume 53,083 37,756 15,327 40.6
 Operating contribution:
 Foodservice segment 5,062 4,216 846 20.1
 Restaurant segment 3,970 3,224 746 23.1
 Total operating
 contribution 9,032 7,440 1,592 21.4
 Selling, general &
 administrative expenses 6,606 5,598 1,008 18.0
 Interest expense 635 539 96 17.8
 Other 58 34 24 70.6
 Income before income taxes 1,733 1,269 464 36.6
 Income taxes 572 370 202 54.6
 Net income 1,161 899 262 29.2
 Weighted Average share:
 Primary 3,888 3,278 610 18.6
 Fully diluted 8,506 5,529 2,977 53.8
 Earnings per share:
 Primary 0.30 0.27 0.02 7.3
 Fully diluted 0.18 0.16 0.02 12.5
 DAKA INTERNATIONAL, INC.
 Operating Results By Segment
 Quarters Ended Fiscal Years Ended
 10/2/93 9/28/92 6/26/93 6/27/92
 Revenues
 Sales from profit and
 loss contracts $30,542 $20,774 $101,147 $102,984
 Management fees 1,243 1,009 4,330 4,924
 Restaurant sales 22,905 18,638 72,868 52,383
 Franchising income 996 1,206 4,318 3,926
 Total revenues 55,686 41,627 182,663 164,217
 Foodservice Segment:
 Sales from profit and
 loss contracts 30,542 20,774 101,147 102,984
 Operating expenses (in percent):
 Labor costs 35.0 30.9 31.8 33.1
 Product costs 34.0 34.7 35.1 34.7
 Other operating expenses 16.5 17.1 15.5 15.7
 Depreciation and amortization 2.1 1.9 1.5 1.6
 Income from profit and
 loss contracts 12.5 15.4 16.2 14.9
 Management fees 4.1 4.9 4.3 4.8
 Income from foodservice
 operations 16.6 20.3 20.4 19.7
 Restaurant Segment:
 Sales from restaurant
 operations 22,905 18,638 72,668 52,383
 Operating expenses (in percent):
 Labor costs 30.2 30.5 30.3 30.3
 Product costs 27.7 26.0 28.1 27.8
 Other operating expenses 25.1 26.6 26.8 25.9
 Depreciation and amortization 3.9 4.1 4.4 4.9
 Income from restaurant
 operations 13.0 10.8 10.3 11.1
 Income from restaurant and
 franchising operations 4.3 6.5 5.9 7.5
 Income from restaurant and
 franchising operations 17.3 17.3 16.2 18.6
 Income from operations before
 selling, general and
 administrative expenses 16.2 17.9 17.6 16.3
 Selling, general and
 administrative expenses 11.9 13.4 13.1 13.4
 Operating income 4.4 4.4 4.7 4.9
 Interest expense 1.1 1.3 1.3 1.6
 Interest income -0.2 -0.1 -0.2 -0.1
 Minority interest 0.3 0.2 0.0 -0.1
 Income from operations
 before income taxes 3.1 3.0 3.6 3.6
 Income taxes 1.0 0.8 1.1 1.0
 Income from operations 2.1 2.2 2.5 2.6
 Extraordinary gain,
 net of income taxes 0.0 0.0 0.3 0.0
 Net income 2.1 2.2 2.8 2.6
 DAKA INTERNATIONAL, INC.
 Operating Results by Segment
 Quarters Ended Fiscal Years Ended
 10/2/93 9/28/92 6/26/93 6/27/93
 Selling, general and
 administrative expenses:
 Foodservice segment 1,697 1,493 6,856 6,480
 Restaurant segment 1,600 1,459 5,628 5,224
 Corporate 3,309 2,646 11,360 10,303
 Total 6,606 5,598 23,844 22,007
 Operating income 2,426 1,842 8,648 8,071
 Interest expense 635 539 2,361 2,687
 Interest income (87) (29) (428) (230)
 Minority interest 145 63 76 (245)
 Income from operations
 before income taxes 1,733 1,269 6,639 5,859
 Income taxes 572 370 1,992 1,620
 Income from operations 899 4,647 4,239
 Extraordinary gain 462
 Net income 1,161 899 5,109 4,239
 Weighted Average Shares:
 Primary 3,888 3,278 3,423 3,411
 Fully diluted 8,506 5,529 6,311 4,407
 Earnings per share:
 Primary:
 Income from operations 0.30 0.27 1.36 1.24
 Net income 0.30 0.27 1.49 1.24
 Fully diluted:
 Income from operations 0.18 0.16 0.80 0.96
 Net income 0.18 0.16 0.87 0.96
 Revenues:
 Sales from profit and
 loss contracts 30,542 20,774 101,147 102,984
 Management fees 1,243 1,009 4,330 4,924
 Restaurant sales 22,905 18,638 72,868 52,383
 Franchising income 996 1,206 4,318 3,926
 Total revenues 55,686 41,627 182,663 164,217
 Foodservice Segment:
 Managed volume 53,083 37,756
 Sales from profit and
 loss contracts 30,542 20,774 101,147 102,984
 Operating expenses:
 Labor costs 10,678 6,415 32,151 34,045
 Product costs 10,373 7,211 35,463 35,690
 Other operating expenses 5,033 3,548 15,650 16,207
 Depreciation and
 amortization 639 393 1,542 1,646
 Income from profit and
 loss contracts 3,819 3,207 16,341 15,396
 Management fees 1,243 1,009 4,330 4,924
 Income from foodservice
 operations 5,062 4,216 20,671 20,320
 Restaurant Segment:
 Sales from restaurant
 operations 22,905 18,638 72,868 52,369
 Operating expenses:
 Labor costs 6,919 5,685 22,113 15,890
 Product costs 6,351 5,220 20,498 14,560
 Other operating expenses 5,758 4,956 19,520 13,552
 Depreciation and
 amortization 903 759 3,234 2,549
 Income from restaurant
 operations 2,974 2,018 7,503 5,832
 Franchising income 996 1,206 4,318 3,926
 Income from restaurant and
 franchising operations 3,970 3,224 11,821 9,758
 Income from operations before
 selling, general and
 administrative expenses 9,032 7,440 32,492 30,078
 -0- 10/28/93
 /CONTACT: Michael A. Woodhouse, chief financial officer of DAKA International, 508-774-9115/
 (DKAI)


CO: DAKA International, Inc. ST: Massachusetts IN: LEI SU: ERN

TS-PS -- NY010 -- 7678 10/28/93 07:48 EDT
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