FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter ended October 2, 1996
Commission File No. 0-10943
RYAN'S FAMILY STEAK HOUSES, INC.
(Exact name of registrant as specified in its charter)
South Carolina No. 57-0657895
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
405 Lancaster Avenue (29650)
P. O. Box 100
Greer, South Carolina 29652
(Address of principal executive
offices, including zip code)
864-879-1000
(Registrant's telephone number, including area code)
- ------------------------------------------------------------
-----------
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No ________
The number of shares outstanding of each of the registrant's
classes of common stock as of October 2, 1996:
50,935,000 shares of common stock, $1.00 Par Value
PART I. FINANCIAL INFORMATION
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Quarter Ended
October 2, September 27,
1996 1995
Restaurant sales $146,250 131,786
Operating expenses:
Food and beverage 58,093 53,789
Payroll and benefits 41,517 37,255
Depreciation and amortization 6,480 5,523
Other operating expenses 18,827 16,219
Total operating expenses 124,917 112,786
General and administrative expenses 6,434 5,493
Interest expense 956 445
Revenues from franchised restaurants (369) (460)
Other income, net (289) (253)
Earnings before income taxes 14,601 13,775
Income taxes 5,373 5,097
Net earnings $ 9,228 8,678
Net earnings per common and common
equivalent share $ .18 .16
Weighted average shares 51,184,000 53,454,000
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Nine Months Ended
October 2, September 27,
1996 1995
Restaurant sales $424,469 380,415
Operating expenses:
Food and beverage 168,490 155,080
Payroll and benefits 119,998 108,244
Depreciation and amortization 18,248 15,792
Other operating expenses 53,311 46,128
Total operating expenses 360,047 325,244
General and administrative expenses 19,534 16,228
Interest expense 2,278 1,331
Revenues from franchised restaurants (1,165) (1,355)
Other income, net (1,102) (790)
Earnings before income taxes 44,877 39,757
Income taxes 16,542 14,710
Net earnings $28,335 25,047
Net earnings per common and common
equivalent share $ .54 .47
Weighted average shares 52,157,000 53,445,000
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
October 2, January 3,
1996 1996
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 538 1,299
Receivables 1,855 1,731
Inventories 4,031 4,045
Deferred income taxes 2,923 2,923
Other current assets 2,108 1,491
Total current assets 11,455 11,489
Property and equipment:
Land and improvements 103,320 95,093
Buildings 265,848 233,674
Equipment 165,740 144,638
Construction in progress 37,486 31,311
572,394 504,716
Less accumulated depreciation 109,291 92,495
Net property and equipment 463,103 412,221
Other assets 1,968 1,784
$476,526 425,494
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable 17,700 72,200
Accounts payable 14,487 11,640
Income taxes payable 4,384 745
Accrued liabilities 24,835 23,761
Total current liabilities 61,406 108,346
Long-term debt 93,000 -
Deferred income taxes 14,619 14,454
Total liabilities 169,025 122,800
Shareholders' equity:
Common stock of $1.00 par value;
authorized 100,000,000 shares;
issued 50,935,000 shares in 1996
and 53,462,000 shares in 1995 50,935 53,462
Additional paid-in capital - 6,751
Retained earnings 256,566 242,481
Total shareholders' equity 307,501 302,694
Commitments
$476,526 425,494
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Nine Months Ended
October 2,September 27,
1996 1995
Cash flows from operating activities:
Net earnings $28,335 25,047
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 18,872 16,480
Loss on sale of property
and equipment 101 251
Decrease (increase) in:
Receivables (124) 276
Inventories 14 (801)
Other current assets (2,336) (2,010)
Other assets (189) (648)
Increase in:
Accounts payable 2,847 4,675
Income taxes payable 3,639 1,844
Accrued liabilities 1,074 1,799
Deferred income taxes 165 147
Net cash provided by operating
activities 52,398 47,060
Cash flows from investing activities:
Proceeds from sale of property
and equipment 804 3,456
Capital expenditures (68,935) (51,489)
Net cash used in investing activities (68,131) (48,033)
Cash flows from financing activities:
Net proceeds from (repayment of)
notes payable (54,500) 1,800
Proceeds from issuance of
long-term debt 93,000 -
Proceeds from the issuance of
common stock 737 113
Purchase of common stock (24,265) -
Net cash provided by financing
activities 14,972 1,913
Net increase (decrease) in cash
and cash equivalents (761) 940
Cash and cash equivalents -
beginning of period 1,299 695
Cash and cash equivalents -
end of period $ 538 1,635
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands)
I. For the Nine Months Ended October 2, 1996
(Unaudited)
$1 Par Value Additional
Common Paid-In Retained
Stock Capital Earnings Total
Balances at January 3, 1996 $53,462 6,751 242,481 302,694
Net earnings - - 28,335 28,335
Issuance of common stock
under Stock Option Plans 118 619 - 737
Purchases of common stock (2,645) (7,370) (14,250) (24,265)
Balances at October 2, 1996 $50,935 - 256,566 307,501
II. For the Nine Months Ended September 27, 1995
(Unaudited)
$1 Par Value Additional
Common Paid-In Retained
Stock Capital Earnings Total
Balances at December 28, 1994 $53,434 6,599 209,322 269,355
Net earnings - - 25,047 25,047
Issuance of common stock
under Stock Option Plans 20 93 - 113
Balances at September 27, 1995 $53,454 6,692 234,369 294,515
See accompanying notes to consolidated financial statements.
RYAN'S FAMILY STEAK HOUSES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
October 2, 1996
(Unaudited)
Note 1. Basis of Presentation
The consolidated financial statements include the financial
statements of Ryan's Family Steak Houses, Inc. and its
wholly owned subsidiaries. All significant intercompany
balances and transactions have been eliminated in
consolidation.
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
the instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. Consolidated operating
results for the nine months ended October 2, 1996 are not
necessarily indicative of the results that may be expected
for the fiscal year ending January 1, 1997. For further
information, refer to the consolidated financial statements
and footnotes included in the Company's annual report on
Form 10-K for the fiscal year ended January 3, 1996.
Note 2. Long-Term Debt
In June 1996, the Company entered into a credit agreement
with a group of banks for a $93 million term loan ("Term
Loan") payable in quarterly installments of $5,813,000
commencing September 1999 with the final quarterly
installment due June 2003. The Term Loan is unsecured and
bears interest at various rates generally equal to LIBOR, or
the London Interbank Offered Rate, plus 0.5%.
The terms of the credit agreement contain, among other
provisions, requirements for the Company to maintain a
minimum net worth level and certain financial ratios and
restrictions on the Company's ability to incur additional
indebtedness, merge, consolidate, and acquire or sell
assets. At October 2, 1996, the Company exceeded the most
restrictive minimum net worth covenant by approximately
$71.9 million.
The aggregate maturities of the Term Loan for the remainder
of 1996 and for each of the five years subsequent to January
1, 1997 are as follows: $0 for years 1996 through 1998;
$11.6 million in 1999; $23.3 million in 2000; and $23.3
million in 2001.
Note 3. Reclassifications
Certain 1995 amounts in the accompanying consolidated
financial statements have been reclassified to conform to
the 1996 presentation.
Note 4. Subsequent Events
In order to manage its exposure to potentially significant
increases in interest rates, the Company entered into a
collar transaction in October 1996 with a major regional
bank that provides credit to the Company under both the Term
Loan agreement (see note 2) and an uncommitted bank line.
The collar transaction places a ceiling of 7.25% and a floor
of 5.00% on the three-month LIBOR for a two-year period
ending October 1998 on a notional principal amount of $75
million at a cost of approximately $66,000. The three-month
LIBOR has stayed between the ceiling and floor since the
commencement of the transaction.
In November 1996, the Company announced its FOCUS 2000 plan.
The key elements of the plan include:
1.Reducing unit investment and further increasing
store-level profitability, thereby increasing
return on investment;
2.Realigning energies and resources to provide
deeper levels of training, resulting in greater
team member empowerment, performance and
retention;
3.Opening new Ryan's units at the rate of 5% for
the next two to three years; and
4.Pursuing stock repurchases at a more aggressive
level to accelerate earnings per share growth.
In connection with FOCUS 2000, the Company's Board of
Directors authorized the increase of the previously
announced stock repurchase program from 6.4 million shares
to 10 million shares through 1998.
As part of the FOCUS 2000 announcement, the Company also
announced that it would take a one-time $12.7 million charge
during the fourth quarter of 1996 in accordance with the
Financial Accounting Standards Board's Statement 121,
"Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed of". This charge was based
upon a financial review of all Company-owned restaurants and
applies to nine currently underperforming units. Details of
the charge follow:
# of Amount of
Operating Status Units Charge (Millions)
Hold and use 3 $3.4
To be disposed of 6 9.3
$12.7
All charges were based on the difference between each unit's
net book value and estimated fair value, which equaled the
estimated proceeds from disposal as determined by
management. Considerable management judgment is necessary
to estimate proceeds from disposal and, accordingly, actual
proceeds could vary significantly from such estimates.
Management plans to actively market the six units targeted
for disposal, but currently cannot estimate their expected
disposal dates. For the nine months ended October 2, 1996,
these six units had a combined after-tax loss of $450,000.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Quarter Ended October 2, 1996 versus September 27, 1995
The Company experienced strong sales growth during the third
quarter of 1996 with restaurant sales up 11% over the
comparable quarter of 1995. Substantially all of the
increase resulted from the 12% unit growth of company-owned
restaurants, which totaled 255 at October 2, 1996 and 228 at
September 27, 1995. The 1996 store count was comprised of
250 Ryan's restaurants and 5 other restaurants, representing
3 different test concepts (see "Liquidity and Capital
Resources"). The 1995 store count was comprised of 223
Ryan's and 5 of the test concept restaurants.
Same-store sales at the Company's Ryan's restaurants, or
average unit sales in units that have been open for at least
18 months and operating during comparable weeks during the
current and prior year, decreased 0.7% during the quarter
compared to a 3.4% increase during the third quarter of
1995. Management believes that the nationwide interest in
the Summer Olympics (held in Atlanta, GA - the Company's
largest market) and an overall weak restaurant sales
environment were significant factors impacting sales
results. However, sales did strengthen during the quarter
as same-store sales moved from -1.3% in July to -0.1% in
September.
Total costs and expenses of Company-owned restaurants
include food and beverage, payroll, payroll taxes and
employee benefits, depreciation and amortization, repairs,
maintenance, utilities, supplies, advertising, insurance,
property taxes and licenses. Such costs, as a percentage of
sales, were 85.4% during the third quarter of 1996 compared
to 85.6% in 1995. Food and beverage costs decreased from
40.8% of sales in 1995 to 39.7% in 1996 due principally to
lower beef and produce prices. Payroll and benefits
increased from 28.3% of sales in 1995 to 28.4% of sales in
1996 due to improved manager staffing levels and higher
medical insurance costs. All other operating costs,
including depreciation and amortization of pre-opening
costs, increased to 17.3% of sales in 1996 compared to 16.5%
in 1995 due principally to higher repairs and maintenance
and utility costs. Based on these factors, the Company's
operating margin at the restaurant level increased to 14.6%
in the third quarter of 1996 compared to 14.4% in 1995.
General and administrative expenses increased to 4.4% of
sales in 1996 compared to 4.2% in 1995 due principally to
lower same-store sales. The Company significantly expanded
its media advertising program in 1996 and, at the end of the
third quarter, had started or completed campaigns in 9 of
the 10 markets planned for 1996 compared to only 2 markets
during all of 1995. Total media advertising costs are
expected to amount to 0.3% of sales in 1996 versus 0.1% in
1995. Plans are to expand the media advertising program to
15 markets in 1997.
Interest expense increased by $511,000 to 0.7% of sales in
1996 compared to 0.3% in 1995. This increase is due
principally to the increase in the Company's outstanding
debt, which amounted to $110.7 million at October 2, 1996
compared to $72.2 million at January 3, 1996. The stock
repurchase program implemented in March 1996 and the planned
borrowing needs for scheduled restaurant construction are
the principal factors behind the higher debt level (see
"Liquidity and Capital Resources"). The Company's effective
average interest rate decreased to 6.0% in 1996 compared to
6.3% in 1995.
Franchise revenues for the third quarter of 1996 decreased
to $369,000, or 0.3% of sales, from $460,000 (0.3% of sales)
in 1995, due principally to a lesser number of franchised
restaurants. At October 2, 1996, there were 25 franchised
Ryan's compared to 26 at September 27, 1995.
Effective income tax rates of 36.8% and 37.0% were used for
the third quarters of 1996 and 1995, respectively.
Net earnings for the third quarter of 1996 increased 6% to
$9.2 million compared to $8.7 million in 1995. Due to a 4%
reduction in weighted average shares resulting from the
Company's stock repurchase program (see "Liquidity and
Capital Resources"), earnings per share increased 13% to 18
cents in 1996 compared to 16 cents in 1995.
Nine Months Ended October 2, 1996 versus September 27, 1995
For the nine months ended October 2, 1996, restaurant sales
were up 12% compared to the same period in 1995, principally
due to 10% average unit growth. Same-store sales decreased
0.1% during the first nine months of 1996 compared to a 2.2%
increase in 1995.
Nine-month costs and expenses as detailed above were 84.8%
and 85.5% of sales for 1996 and 1995, respectively. During
the first nine months of 1996, costs and expenses were most
affected by lower food costs (down 1.1% of sales) and higher
other operating expenses (up 0.6% of sales). Food costs
were favorably impacted by lower beef and produce costs, and
other operating expenses increased due to higher repairs and
maintenance and utility costs. Based on these factors, the
Company's operating margin at the restaurant level increased
to 15.2% for the first nine months of 1996 compared to 14.5%
in 1995.
General and administrative expenses increased as a
percentage of sales to 4.6% in 1996 from 4.3% in 1995 due to
higher advertising costs. Interest expense increased by
$947,000 to 0.5% of sales due principally to the increase in
debt resulting from the stock repurchase program and
planned restaurant construction (see "Liquidity And
Capital Resources"). The Company's effective average
interest rate decreased to 5.9% in 1996 compared to 6.4% in
1995. Revenues from franchised restaurants decreased by
$190,000 due to the same factors noted in the third quarter
discussion, and other income increased by $312,000 due to
higher miscellaneous vending income. Effective income tax
rates of 36.9% and 37.0% were used for the first nine months
of 1996 and 1995, respectively.
Net earnings for the first nine months of 1996 increased 13%
to $28.3 million compared to $25.0 million in 1995.
Earnings per share increased to 54 cents in 1996 compared to
47 cents in 1995.
LIQUIDITY AND CAPITAL RESOURCES
The Company's restaurant sales are primarily derived from
cash. Inventories are purchased on credit and are rapidly
converted to cash. Therefore, the Company does not maintain
significant receivables or inventories, and other working
capital requirements for operations are not significant.
At October 2, 1996, the Company's working capital was a
$50.0 million deficit compared to a $96.9 million deficit at
January 3, 1996. The principal reason for the deficit
reduction was the refinancing in June 1996 of $93 million of
short-term debt into a long-term credit facility. The
Company does not anticipate any adverse effects from the
current working capital deficit due to significant cash flow
provided by operations, which amounted to $52.4 million for
the nine months ended October 2, 1996 and $61.8 million for
the year ended January 3, 1996.
Total capital expenditures for the first nine months of 1996
amounted to $68.9 million. The Company opened 24 new Ryan's
restaurants during the first nine months of 1996 and plans
to open 6 additional Ryan's in the fourth quarter of 1996
for a total of 30 new restaurants (all Ryan's). During
1995, the Company opened 24 restaurants (21 Ryan's and 3
test concepts). Total capital expenditures for 1996 are
estimated at $83 million. Expansion will occur in states
within or contiguous to the Company's current 21-state
operating area. The Company currently does not plan any
international expansion of company-owned stores.
The Company is also testing several casual-dining concepts.
As noted earlier, the restaurant count at October 2, 1996
includes 5 such units, representing 3 different concepts.
Three of these restaurants were converted from existing
Ryan's, while the other 2 units were new construction.
Further expansion of these concepts is not currently
planned.
The Company is currently concentrating its efforts on
Company-owned stores and is not actively pursuing any
additional franchised locations, either domestically or
internationally.
In March 1996, management announced its intention to
repurchase an aggregate 6.4 million shares of the Company's
common stock through December 1998. In November 1996, the
Company's Board of Directors increased the authorization to
10 million shares (see "Subsequent Events"). Through
October 2, 1996, the Company had repurchased approximately
2.6 million shares at an aggregate cost of approximately
$24.2 million. Repurchases have and will be made from time
to time on the open market or in privately negotiated
transactions in accordance with applicable securities
regulations, depending on market conditions, share price and
other factors.
Management currently estimates that its external funding
requirements in 1996 will approximate $50 million. This
amount could be higher depending upon the level of stock
repurchases incurred during the remainder of the year.
Other funding needs are expected to be met by internally
generated cash from operations. The Company's debt
structure currently consists of a $93 million term loan (see
following paragraph) and several uncommitted bank lines
totaling $110 million at various short-term rates of which
$17.7 million was utilized at October 2, 1996.
In June 1996, the Company entered into a credit agreement
with a group of banks for a $93 million term loan ("Term
Loan") payable in quarterly installments of $5,813,000
commencing September 1999 with the final quarterly
installment due June 2003. The Term Loan is unsecured and
bears interest at various rates generally equal to LIBOR, or
the London Interbank Offered Rate, plus 0.5%. The terms of
the credit agreement contain, among other provisions,
requirements for the Company to maintain a minimum net
worth level and certain financial ratios and restrictions
on the Company's
ability to incur additional indebtedness, merge,
consolidate, and acquire or sell assets. At October 2,
1996, the Company exceeded the most restrictive minimum net
worth covenant by approximately $71.9 million. The
aggregate maturities of the Term Loan for the remainder of
1996 and for each of the five years subsequent to January 1,
1997 are as follows: $0 for years 1996 through 1998; $11.6
million in 1999; $23.3 million in 2000; and $23.3 million in
2001.
Under the current borrowing arrangements, no interest rates
have been fixed and generally change in response to changes
in LIBOR. Management believes that the Company's current
banking relationships provide the opportunity to fix the
interest rate on all or portions of the outstanding debt for
various periods of time, based upon the Company's
preference. Management frequently reviews various interest
rate options in order to determine their economic
feasibility. In October 1996, the Company entered into a
collar transaction designed to manage its exposure to
significant increases in interest rates (see "Subsequent
Events").
Management believes that the current debt structure will be
sufficient to meet the Company's financing requirements at
least through 1998.
SUBSEQUENT EVENTS
In order to manage its exposure to potentially significant
increases in interest rates, the Company entered into a
collar transaction in October 1996 with a major regional
bank that provides credit to the Company under both the Term
Loan agreement and an uncommitted bank line (see "Liquidity
and Capital Resources"). The collar transaction places a
ceiling of 7.25% and a floor of 5.00% on the three-month
LIBOR for a two-year period ending October 1998 on a
notional principal amount of $75 million at a cost of
approximately $66,000. The three-month LIBOR has stayed
between the ceiling and floor since the commencement of the
transaction.
In November 1996, the Company announced its FOCUS 2000 plan.
The key elements of the plan include:
1.Reducing unit investment and further increasing
store-level profitability, thereby increasing
return on investment;
2.Realigning energies and resources to provide
deeper levels of training, resulting in greater
team member empowerment, performance and
retention;
3.Opening new Ryan's units at the rate of 5% for
the next two to three years; and
4.Pursuing stock repurchases at a more aggressive
level to accelerate earnings per share growth.
In connection with FOCUS 2000, the Company's Board of
Directors authorized the increase of the stock repurchase
program from 6.4 million shares to 10 million shares through
1998.
As part of the FOCUS 2000 announcement, the Company also
announced that it would take a one-time $12.7 million charge
during the fourth quarter of 1996 in accordance with the
Financial Accounting Standards Board's Statement 121,
"Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed of". This charge was based
upon a financial review of all Company-owned restaurants and
applies to nine currently underperforming units. Details of
the charge follow:
# of Amount of
Operating Status Units Charge (Millions)
Hold and use 3 $3.4
To be disposed of 6 9.3
$12.7
All charges were based on the difference between each unit's
net book value and estimated fair value, which equaled the
estimated proceeds from disposal as determined by
management. Considerable management judgment is necessary
to estimate proceeds from disposal and, accordingly, actual
proceeds could vary significantly from such estimates.
Management plans to actively market the six units targeted
for disposal, but currently cannot estimate their expected
disposal dates. For the nine months ended October 2, 1996,
these six units had a combined after-tax loss of $450,000.
IMPACT OF INFLATION
The Company's operating costs that may be affected by
inflation consist principally of food, payroll and utility
costs. Additionally, a significant number of the Company's
restaurant employees are paid at the minimum wage and,
accordingly, legislated changes to the minimum wage will
normally affect the Company's payroll costs. In July 1996,
Congress legislated an increase in the Federal minimum wage
from $4.25 per hour to an eventual $5.15 per hour. Under
this measure the minimum wage increased to $4.75 on October
1, 1996 and will further increase to $5.15 on September 1,
1997. This measure did not change the $2.13 rate for tipped
employees. Due to the Company's current wage levels and the
law's provisions regarding tipped employees, management
believes that these increases will have minimal impact on
payroll costs.
The Company considers its current price structure to be very
competitive. This factor, among others, is considered by
the Company when passing increased costs on to its
customers. Annual menu price increases have consistently
ranged from 1% to 3%.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None reportable.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of
Security Holders.
None reportable.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a)None.
(b)On November 13, 1996, the Company filed a report
on Form 8-K regarding the Company's unit growth
and stock repurchase plans (referred to herein
as "FOCUS 2000") and a one-time $12.7 million
charge to be taken during the fourth quarter of
1996 in accordance with the Financial Accounting
Standards Board's Statement 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed of". Both items are
discussed in "Management's Discussion And
Analysis Of Financial Condition And Results Of
Operations - Subsequent Events".
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
RYAN'S FAMILY STEAK HOUSES, INC.
(Registrant)
November 15, 1996 /s/Charles D. Way
Charles D. Way
Chairman, President and Chief Executive
Officer
November 15, 1996 /s/Fred T. Grant, Jr.
Fred T. Grant, Jr.
Vice President-Finance and Treasurer
November 15, 1996 /s/Richard D. Sieradzki
Richard D. Sieradzki
Controller