<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF SHONEY'S, INC. FOR THE PERIOD ENDED AUGUST 4, 1996 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          OCT-27-1996
<PERIOD-START>                             OCT-30-1995
<PERIOD-END>                               AUG-04-1996
<CASH>                                       6,833,148
<SECURITIES>                                         0
<RECEIVABLES>                               15,033,668
<ALLOWANCES>                                 2,191,989
<INVENTORY>                                 39,011,026
<CURRENT-ASSETS>                            93,608,651
<PP&E>                                     749,543,783
<DEPRECIATION>                             312,006,039
<TOTAL-ASSETS>                             552,012,372
<CURRENT-LIABILITIES>                      184,317,660
<BONDS>                                              0 
<PREFERRED-MANDATORY>                                0 
<PREFERRED>                                          0 
<COMMON>                                    41,664,367
<OTHER-SE>                                (109,556,144)
<TOTAL-LIABILITY-AND-EQUITY>               552,012,372
<SALES>                                    795,305,943
<TOTAL-REVENUES>                           814,932,200
<CGS>                                      711,205,419
<TOTAL-COSTS>                              790,783,732
<OTHER-EXPENSES>                            51,979,171
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                          27,599,142
<INCOME-PRETAX>                             24,148,468
<INCOME-TAX>                                 9,473,000
<INCOME-CONTINUING>                         14,675,468
<DISCONTINUED>                                 397,816
<EXTRAORDINARY>                                      0 
<CHANGES>                                            0 
<NET-INCOME>                                37,153,659
<EPS-PRIMARY>                                     0.89
<EPS-DILUTED>                                     0.87