Quality Dining Reports First Quarter Results

Quality Dining Reports First Quarter Results 


MISHAWAKA, Ind., March 31  /PRNewswire-FirstCall/ -- Quality Dining, Inc.  today
reported net income of $279,000, or $0.02 per diluted share, on total revenues
of $64.1 million for the first quarter of fiscal 2004 compared to a net income
of $179,000, or $0.02 per diluted share, on total revenues of $65.1 million for
the same period in fiscal 2003.

Quality Dining owns the Grady's American Grill(R), Papa Vino's Italian
Kitchen(TM) andSpageddies Italian Kitchen(TM) concepts and operates Burger
King(R) restaurants and Chili's Grill & Bar(R) restaurants as a franchisee. As
of March 31, 2004 the Company operates 118 Burger King restaurants, 37 Chili's
Grill & Bar restaurants, 8 Grady'sAmerican Grill restaurants, 6 Papa Vino's
Italian Kitchen(TM) restaurants, 3 Spageddies Italian Kitchen restaurants, one
Regas Grill(R) and one Porterhouse Steaks and Seafood(TM) restaurant.

This press release contains and incorporates forward-lookingstatements within
the meaning of the Private Securities Litigation Reform Act of 1995, including
statements about the Company's development plans and trends in the Company's
operations and financial results. Forward-looking statements can be identified
by the use of words such as "anticipates," "believes," "plans," "estimates,"
"expects," "intends," "may," and other similar expressions. Forward-looking
statements are made based upon management's current expectations and beliefs
concerning future developments and their potential effects on the Company. There
can be no assurance that the Company will actually achieve the plans, intentions
and expectations discussed in these forward-looking statements. Actual results
may differ materially. Among the risks and uncertainties that could cause actual
results to differ materially are the following: the availability and cost of
suitable locations for new restaurants; the availability and cost of capital to
the Company; the ability of the Company to develop and operate its restaurants;
the ability of the Company to sustain sales and margins in the increasingly
competitive environment; the hiring, training and retention of skilled corporate
and restaurant management and other restaurant personnel; the integration and
assimilation of acquired concepts; the overall success of the Company's
franchisors; the ability to obtain the necessary government approvals and
third-party consents; changes in governmental regulations, including increases
in the minimum wage; the results of pending litigation; and weather and other
acts of God. The Company undertakes no obligation to update or revise any
forward-looking information, whether as a result of new information, future
developments or otherwise. Quality Dining is not responsible for changes made to
this document by wire services or Internet services.

                       QUALITY DINING, INC.
                  Unaudited Financial Highlights
             (in thousands, except per share amounts)

          16 Weeks    16 Weeks
                                                     Ended       Ended
                                                    Feb. 15,    Feb. 16,
                                              2004        2003
                                                    --------    --------
  Revenues:
    Burger King                                      $32,307     $33,941
    Chili's Grill & Bar                               24,807      23,517
    Italian Dining Division                            5,027       5,644
    Grady's American Grill                             1,922       2,042
                                                    --------    --------
  Total revenues               64,063      65,144
                                                    --------    --------
  Operating Expenses:
    Restaurant Operating Expenses:
      Food and beverage                               17,586      17,399
      Payroll and benefits                            18,780      19,336
      Depreciation and amortization                    2,866       3,075
      Other operating expenses                        16,818      17,395
                                          --------    --------
  Total restaurant operating expenses                 56,050      57,205
                                                    --------    --------
  Income from restaurant operations                    8,013       7,939
   General and administrative                         5,014       4,936
    Trademark amortization                                82         116
    Facility closing costs                                54           5
                                     --------    --------
  Operating income                                     2,863       2,882
                                                    --------    --------
  Other income (expense):
    Interest expense                         (2,059)     (2,305)
    Loss on sale of property and equipment               (47)        (11)
    Minority interest in earnings                       (480)       (781)
    Other income, net                                     86         493
   --------    --------
  Total other income (expense), net                   (2,500)     (2,604)
                                                    --------    --------
  Income from continuing operations before
   income taxes                                          363         278
  Income tax provision                                   272         341
                                                    --------    --------
  Income from continuing operations                       91         (63)
  Income from discontinued operations, net of tax        188         242
                                                    --------    --------
  Net Income                                            $279$179
                                                    ========    ========

  Basic net income per share:
    Continuing operations                                  -           -
    Discontinuing operations                            0.02   0.02
                                                    --------    --------
  Basic net income per share                           $0.02       $0.02
                                                    ========    ========
  Diluted net income pershare:
    Continuing operations                                  -           -
    Discontinuing operations                            0.02        0.02
                                                    --------    --------
  Diluted net income per share                         $0.02       $0.02
                                                    ========    ========
  Weighted average shares:
    Basic                                             11,311      11,311
    Diluted                      11,343      11,311


DATASOURCE: Quality Dining, Inc.



CONTACT:  John C. Firth, Executive Vice President and General Counsel of

Quality Dining, Inc., [phone]

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