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RALLY'S INC. NET INCOME $1,416,000 FOR FIRST QUARTER 1993

 LOUISVILLE, Ky., April 27 /PRNewswire/ -- Rally's Inc. (NASDAQ: RLLY), the nation's largest double drive-through hamburger chain today reported earnings per share of $.11 for the first quarter of 1993 vs. $.13 a year ago.
 Wayne Albritton, president and chief operating officer, said, "Our first quarter results were significantly impacted by terrible weather. From Feb. 11, 1993, until March 24, 1993, our restaurants experienced the worst winter weather in our history." The company estimates that the unusually bad weather reduced sales by $2.3 million for company-owned restaurants and $1.5 million for its franchisees, or $.08 per share.
 Albritton noted that 75 percent of the chain's systemwide units are located in the northern part of the United States. "Unquestionably we were more vulnerable to bad weather than other restaurant chains given our current geographic locations," Albritton said. "Our plans for 1993 are to open at least 75 new company restaurants in the South and the West Coast which we believe will significantly reduce our exposure to bad weather in the future."
 For the quarter, the company opened seven restaurants and its franchisees opened 10 restaurants compared with one company-owned and six franchised restaurants opened in the comparable period a year ago. The company and its franchisees have each opened four new restaurants in April and together expect to open a total of 40 new restaurants in the second quarter.
 The company now expects to open 105 restaurants in 1993 and its franchisees will open 60 restaurants for a total of 165 new restaurants.
 Company-owned same store sales were down 3.7 percent for the quarter and franchised restaurants same store sales declined 3.3 percent. As further illustration of the impact of the weather on sales, Albritton noted that company and franchise same store sales were positive in December 1992, and had been flat through the first five weeks of 1993. Same store sales for company and franchise-owned restaurants in the South were positive during this same period. Since March 21, same store sales for company restaurants have been flat and franchisee restaurants have been down (1.8 percent). Albritton said, "Our company remains focused on growth and delivering high-quality food at unbeatable prices. Now that winter is over, our customers are returning to our restaurants to eat our hamburger which was voted in a consumer poll sponsored by Restaurants & Institutions magazine in February 1993 as the best hamburger in America,"
 The company has scheduled a teleconference for 12:30 p.m. EST on April 28, 1993, to discuss the results for the first quarter. Anyone interested in participating in this teleconference should call 312-399-1648 between 12:20 p.m. EST and 12:30 p.m.
 At April 27, 1993, there were 465 restaurants operating in 25 states.
 RALLY'S INC.
 Consolidated Statements of Income
 (Dollars in thousands, except per share information)
 (Unaudited -- Subject to year-end review)
 For the Quarter Ended
 April 4, April 5,
 1993 1992
 Systemwide sales $77,732 $66,162
 Total revenues $36,874 $24,989
 Total costs and
 expenses 34,434 22,403
 Income from
 operations 2,440 2,586
 Total other income
 (expense) (238) (159)
 Income before income
 taxes 2,202 2,427
 Provision for income
 taxes 786 890
 Net income $1,416 $1,537
 Weighted average
 shares
 outstanding(a) 13,451 11,817
 Earnings per share(a) $.11 $.13
 (a) The company declared a three-for-two stock split which was paid on Sept. 10, 1992, in the form of a 50 percent stock dividend to holders of record at Aug. 28, 1992. The effects of this stock split have been reflected for all periods.
 -0- 4/27/93
 /CONTACT: Wayne M. Albritton, president and COO, 310-273-5678, or Donald C. Moore, senior VP and CFO, 800-872-5597 or 502-245-8900, both of Rally's/
 (RLLY)


CO: Rally's Inc. ST: Kentucky IN: REA LEI SU: ERN

EH-TM -- LA045 -- 1580 04/27/93 16:27 EDT
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Publication:PR Newswire
Date:Apr 27, 1993
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