Pizza Inn, Inc. Reports Third Quarter Earnings

Business Wire, May 1, 1998

DALLAS--(BUSINESS WIRE)--May 1, 1998--Pizza Inn, Inc. (Nasdaq:PZZI) today reported earnings for its third quarter ended March 29 of 9 cents per share, up from 8 cents for the same quarter last year.

Net income increased 10% to $1,179,000 versus $1,076,000 last year on revenues of $16.9 million versus $16.5 million last year, and comparable store sales were up 1.2%.

The company also completed an agreement to sells its previously reacquired area development rights for most of Kentucky and Tennessee to Mid-South Pizza Development, Inc. for $1.3 million and includes a commitment to open 20 new restaurants within four years.

For the nine months ended March 29, year-to-date earnings total 25 cents per share versus 24 cents in 1997. Net income increased 7% to $3,455,000 from $3,237,000 on revenues of $51.0 million versus $51.8 million last year.

As of May 1, 1998, Pizza Inn, Inc. is the franchisor and food distributor for 509 Pizza Inn restaurants operating in the United States and other countries. -0-

Pizza Inn, Inc.
(Dollars in thousands, except per share amounts)

Third Quarter
-------------

                                                Quarter Ended
                                          -------------------------
                                          March 29,       March 30,
                                          -------------------------
                                            1998            1997
                                          -------------------------

Revenue                                   $    16,864   $    16,503
Income before taxes                       $     1,388   $     1,630
Net income                                $     1,179   $     1,076
Basic earnings per share                  $      0.09   $      0.08
Diluted earnings per share                $      0.09   $      0.08

Weighted average shares outstanding:

  Basic                                    12,734,185    12,876,864
  Diluted                                  13,716,358    13,755,431


Nine Months
-----------

                                                 Year-to-Date
                                          -------------------------
                                          March 29,       March 30,
                                          -------------------------
                                            1998            1997
                                          -------------------------

Revenue                                   $    50,984   $    51,796
Income before taxes                       $     4,837   $     4,904
Net income                                $     3,455   $     3,237
Basic earnings per share                  $      0.27   $      0.25
Diluted earnings per share                $      0.25   $      0.24

Weighted average shares outstanding:

  Basic                                    12,709,060    12,916,224
  Diluted                                  13,587,786    13,770,208