Back Yard Burgers Reports First Quarter Financial Results

Back Yard Burgers, Inc. (Nasdaq:BYBI) today announced
results for the first quarter of 2006.

   --  Total revenues for the 13-week period ended April 1, 2006,
        were $10,641,000, a record first quarter for the Company and
        an increase of approximately 10.0% over total revenues for the
        13-week period ended April 2, 2005. The higher revenues
        resulted primarily from a $724,000 increase in
        Company-operated restaurant sales and a $204,000 increase in
        royalty fees over the year-earlier period primarily due to a
        net increase of 17 franchised restaurants since April 2, 2005.

   --  The Company reported a net income of $217,000, or $0.04 per
        diluted share, for the first quarter of 2006 compared with net
        loss of $163,000, or $0.03 per diluted share, for the first
        quarter of 2005. Net income for the first quarter of 2006
        includes a gain of approximately $106,000 (net of tax expense
        of $56,000) on the sale of assets. During the first quarter of
        2006, the Company also adopted SFAS 123 (Revised),
        "Share-Based Payment," a revision of SFAS 123, "Accounting for
        Stock-Based Compensation." SFAS 123R requires the fair value
        measurement of all stock-based payments to employees,
        including grants of employee stock options, and recognition of
        those expenses in the statement of operations. As a result,
        the Company recorded a non-cash charge of $27,000 (net of a
        tax benefit of $6,000) during the first quarter of 2006. There
        was no comparable expense recorded during the first quarter of
        2005.

       The net loss for the first quarter of 2005 includes a non-cash
        charge of approximately $358,000 (net of a tax benefit of
        $153,000) relating to the extension of the exercise date of
        certain stock options.

   --  During the first quarter of 2006, same-store sales for
        Company-operated restaurants increased 3.0% from the
        comparable period in 2005 and same-store sales for franchised
        restaurants increased 2.3% for the same period. Same-store
        sales for both Company-operated and franchised restaurants
        were positively affected by approximately 0.5% due to the fact
        that Easter Sunday occurred during the first quarter of 2005
        and during the second quarter of 2006. Historically, sales at
        the Company's restaurants and franchises are lower on Easter
        Sunday.

   --  Unit activity for the quarter included the opening of five
        franchised stores and the closing of one company-operated
        store and three franchised stores.

   As of April 1, 2006, the Company's restaurant system comprised 172
units, including 42 Company-operated stores and 130 franchised stores.
Expansion plans for the remainder of 2006 include the opening of two
Company-operated stores and 20 franchised stores.

   Back Yard Burgers operates and franchises quick-service
restaurants in 20 states, primarily in markets throughout the
Southeast region of the United States. The restaurants specialize in
charbroiled, freshly prepared, great-tasting food. As its name
implies, Back Yard Burgers strives to offer the same high-quality
ingredients and special care typified by outdoor grilling in the
backyard. Its menu features made-to-order gourmet Black Angus
hamburgers and chicken sandwiches - charbroiled over an open flame,
fresh salads, chili and other specialty items, including hand-dipped
milkshakes, fresh-made lemonade and fresh-baked cobblers.

   This press release contains forward-looking statements within the
meaning of the federal securities laws, including statements regarding
the number of Company-operated and franchised restaurants the Company
anticipates opening during fiscal year 2006. Forward-looking
statements are based upon estimates, projections, beliefs and
assumptions of management at the time of such statements and should
not be viewed as guarantees of future performance. Such
forward-looking information involves important risks and uncertainties
that could significantly impact anticipated results in the future and,
accordingly, such results may differ materially from those expressed
in any forward-looking statements by or on behalf of the Company. The
factors that could cause our actual results to differ materially, many
of which are beyond our control, include, but are not limited to, the
following: delays in opening new stores or outlets because of weather,
local permitting, and the availability and cost of land and
construction; increases in competition and competitive discounting;
increases in minimum wage and other operating costs; shortages in raw
food products; volatility of commodity prices; consumer preferences,
spending patterns and demographic trends; the possibility of
unforeseen events affecting the industry generally, and other risks
described from time to time in our periodic reports filed with the
Securities and Exchange Commission. Back Yard Burgers, Inc. disclaims
any obligation to update or revise any forward-looking statement based
on the occurrence of future events, the receipt of new information, or
otherwise.

-0-
*T
                        BACK YARD BURGERS, INC
            Unaudited Consolidated Statements of Operations
               (in thousands, except per share amounts)

                                                 Thirteen Weeks Ended
                                                 --------------------
                                                 04/01/06    04/02/05
                                                 --------    --------
Revenues:
  Restaurant sales                               $  8,932    $  8,208
  Franchise and area development fees                  86         165
  Royalty fees                                      1,135         931
  Advertising fees                                    297         244
  Other                                               191         129
                                                 --------    --------
    Total revenues                                 10,641       9,677
                                                 --------    --------
Expenses:
  Cost of restaurant sales                          2,997       2,639
  Restaurant operating expenses                     4,290       3,995
  General and administrative                        1,748       2,054
  Advertising                                         685         554
  Depreciation and amortization                       551         563
  Gain on sale of assets                             (162)          -
                                                 --------    --------
    Total expenses                                 10,109       9,805
                                                 --------    --------
    Operating income (loss)                           532        (128)
                                                 --------    --------

Interest income                                         7           6
Interest expense                                     (189)       (108)
Other, net                                            (23)        (21)
                                                 --------    --------
    Income before income taxes                        327        (251)
Income tax expense (benefit)                          110         (88)
                                                 --------    --------
Net income (loss)                                $    217    $   (163)
                                                 ========    ========
Income (loss) per share:
  Basic                                          $   0.04    $  (0.03)
                                                 ========    ======== 
  Diluted                                        $   0.04    $  (0.03)
                                                 ========    ========

Weighted average number of common shares and
  common equivalent shares outstanding:
  Basic                                             4,943       4,791
                                                 ========    ========
  Diluted                                           5,105       5,135
                                                 ========    ========
*T