EXHIBIT 13(e)

Auditors' Report
Piccadilly Cafeterias, Inc.

Report of Ernst & Young LLP, Independent Auditors

Shareholders and Board of Directors
Piccadilly Cafeterias, Inc.
Baton Rouge, Louisiana

We have audited the accompanying consolidated  balance  sheets  of  Piccadilly
Cafeterias,  Inc.  as  of June 30, 1995 and 1994, and the related consolidated
statements of income, changes in shareholders' equity, and cash flows for each
of  the  three years in the  period  ended  June  30,  1995.  These  financial
statements   are   the   responsibility   of  the  Company's  management.  Our
responsibility is to express an opinion on these financial statements based on
our audits.

We  conducted  our  audits  in  accordance with  generally  accepted  auditing
standards. Those standards require  that  we  plan  and  perform  the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis,  evidence
supporting  the amounts and disclosures in the financial statements. An  audit
also  includes  assessing  the  accounting  principles  used  and  significant
estimates  made  by  management,  as  well as evaluating the overall financial
statement presentation. We believe that  our audits provide a reasonable basis
for our opinion.

In our opinion, the financial statements referred  to above present fairly, in
all  material  respects,  the  consolidated financial position  of  Piccadilly
Cafeterias, Inc. at June 30, 1995  and  1994,  and the consolidated results of
its operations and its cash flows for each of the  three  years  in the period
ended   June  30,  1995  in  conformity  with  generally  accepted  accounting
principles.

\s\ Ernst & Young LLP
New Orleans, Louisiana
July 31, 1995