UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
X Annual Report Pursuant to Section 13 or 15(D) of The Securities
Exchange Act of 1934 (No Fee Required)
For the fiscal year ended May 31, 1997

Transition Report Pursuant to Section 13 or 15(D) of The
Securities Exchange Act of 1934 (No Fee Required)
For the transition period from to

Commission file number 1-14194

MORRISON HEALTH CARE, INC.
(Exact name of Registrant as specified in charter)

GEORGIA 63-1155966
(State or other jurisdiction of (I.R.S. Employer identification No.)
incorporation or organization)

1955 Lake Park Drive, Suite 400, Smyrna, GA 30080-8855
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (770) 437-3300

Securities Registered Pursuant to Section 12(b) of The Act:

Name of each exchange
Title of each class on which registered

$0.01 par value Common Stock New York Stock Exchange

Securities Registered Pursuant to Section 12(g) of The Act:

None
(Title of class)

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 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

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.[ X ]

The aggregate market value of the voting stock held by non-affiliates of
the Registrant, based upon the closing sale price of Common Stock on
August 8, 1997 as reported on the New York Stock Exchange, was approximately
$188,305,872. Shares of Common Stock held by each executive officer and
director and by each person who owns 5% or more of the outstanding Common
Stock have been excluded in that such persons may be deemed to be affiliates.
This determination of affiliate status is not necessarily a conclusive
determination for other purposes.

The number of shares of the Registrant's common stock outstanding at
August 8, 1997 was 12,195,650.

Portions of the Registrant's Annual Report to Shareholders for the fiscal
year ended May 31, 1997 are incorporated by reference into Parts I and II.

Portions of the Registrant's definitive proxy statement dated
August 18, 1997 are incorporated by reference into Part III.

INDEX

PART I
Page
Number
Item 1. Business 3-6

Item 2. Properties 6

Item 3. Legal Proceedings 6

Item 4. Submission of Matters to a Vote of
Security Holders 6

Executive Officers of the Company 7-8

PART II

Item 5. Market for the Registrant's Common Equity
and Related Stockholder Matters 9

Item 6. Selected Financial Data 9

Item 7. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 9

Item 8. Financial Statements and Supplementary
Data 9

Item 9. Changes in and Disagreements with
Accountants on Accounting and Financial
Disclosure 9

PART III

Item 10. Directors and Executive Officers of the
Registrant 10

Item 11. Executive Compensation 10

Item 12. Security Ownership of Certain Beneficial
Owners and Management 10

Item 13. Certain Relationships and Related
Transactions 10

PART IV

Item 14. Exhibits, Financial Statement Schedules,
and Reports on Form 8-K 11-14

PART I

Item 1. Business.

General

Morrison Health Care, Inc., a Georgia corporation, (the "Company"
or "MHCI"), became an independent publicly owned company in March
1996 as a result of the distribution (the "Distribution") by
Morrison Restaurants Inc., a Delaware corporation ("MRI"), to its
shareholders of all the issued and outstanding shares of common
stock of the Company. As a result of the Distribution, MRI's
shareholders received one share of Company common stock for every
three shares of MRI held. MHCI is the largest independent
company focused exclusively on providing food and nutrition
services to health care facilities. The Company's mission is to
be the leading provider of food and nutrition services to the
health care industry, fully committed to maximizing quality and
value in everything the Company does for its clients, customers,
team members and shareowners. With contracts in 31 states and
Washington D.C., MHCI is one of the leading providers of food and
nutrition services to hospitals and other health care facilities
across North America.

The Company's foodservice business has its origins in the health
care foodservice operations developed by it in the early 1950's.
The Company has expanded through its own marketing and sales
force and by acquiring other foodservice businesses. In August
1994, the Company sold certain of its education, business and
industry ("B&I") contracts and assets and closed the remaining
B&I accounts. This divestiture, which left the Company with only
health care contracts, allowed the Company to concentrate its
capital and management team in the health care industry which
Management believes has a better opportunity for growth and
profitability.

Operations

Morrison Health Care, Inc. operates the food and nutrition
services departments of hospitals and other health care
facilities. These departments typically include retail outlets
for staff and visitors and patient food and nutrition services.
MHCI accounts range in size from 100 bed specialty hospitals to
facilities with over 2,100 beds. The Company has operations in
31 states and Washington, D.C. Approximately 78% of the accounts
are in hospitals.

The Company provides its clients with the flexibility to adjust
programs, staffing and service plans to meet the changing needs
of the industry. MHCI has capitalized on its retail heritage in
operating restaurants to bring a retail-oriented mentality to
health care clients. MHCI offers its clients programs designed
to reduce costs and increase customer (patients and staff)
satisfaction. To better serve its clients and provide them with
specialized expertise, MHCI's staff is organized into regional
teams. Teams may include a regional vice president, regional
director of operations, regional director of nutrition services,
regional director of culinary, human resources director, support
services coordinator and a director of business development who
are dedicated to sharing the best industry practices and
performance improvement ideas. The regional teams are supported
by a corporate staff that includes nutrition services, marketing,
sales, vending, human resources, legal, finance, layout and
design and culinary services.

MHCI offers its services pursuant to three general types of
contracts:(i) profit and loss (or guaranteed cost) contract,
where MHCI assumes the risk of profit or loss for the foodservice
operation; (ii) management fee contract, where the client
reimburses MHCI for all costs incurred in providing the services
contracted for and a negotiated management fee for supervising
the client's food and nutrition services operations; and (iii)
management fee contract with incentives and penalties, under
which MHCI manages the client's food and nutrition operations on
a management fee basis, with the amount of the management fee
determined based on the achievement of predetermined goals.
Approximately 75% of MHCI's accounts are operated pursuant to
management fee contracts, as management fee contracts with
incentives and penalties are becoming more popular. The majority
of MHCI's contracts were awarded through bidding processes.

In addition, MHCI operates "branded concept" restaurants such as
Pizza Hut and Taco Bell on client premises. These branded
concepts accounts are operated pursuant to license arrangements
with the appropriate restaurant company. Currently, MHCI has 13
license arrangements with nationally and regionally recognized
restaurant companies.

The Company has created a new division to develop advanced food
preparation and delivery systems. These systems are designed to
increase customer satisfaction by enhancing production
consistencies and generate significant cost reductions, while
providing quality services for health care facilities nationwide.

MHCI markets its services nationwide through its business
development directors. Each business development director
focuses on potential clients in a specific territory pursuant to
a marketing plan. The business development directors along with
a vice president of health systems also market MHCI's services to
large national accounts. In addition, MHCI personnel market to
existing clients to cross-sell additional services and increase
sales of existing services to complement the facility's
foodservices department.

Research and Development

The Company does not engage in any material research and
development activities. Numerous studies are made, however, on a
continuing basis, to improve menus, equipment, and methods of
operations.

Raw Materials

Raw materials essential to the operation of the Company's
business are obtained principally through national food
distributors. The Company uses short-term purchase commitment
contracts to stabilize the potentially volatile pricing
associated with certain commodities. Because of the relatively
short storage life of inventories, limited storage facilities at
customer locations, MHCI's requirements for freshness and the
numerous sources of goods, a minimum amount of inventory is
maintained at customer locations. If necessary, all essential
food, beverage and operational products are available and can be
obtained from alternative suppliers in all cities where the
Company operates. The Company has entered into a purchasing
arrangement with Ruby Tuesday, Inc.("RTI"), successor to MRI's
casual dining business and Morrison Fresh Cooking, Inc. ("MFCI"),
which held the family dining assets of MRI and was spun off,
along with the Company, in the Distribution, to maintain the
volume purchasing bargaining position enjoyed by the Company
prior to the Distribution.

Trademarks of the Company

The Company has registered certain trademarks and service marks
with the United States Patent and Trademark Office including the
Pro-Health Dining trademark. The Company believes that this and
other related marks are important to its business. Registrations
of the Company's trademarks expire from 2000 to 2009, unless
renewed.

Seasonality

The Company's revenues are not seasonal to any significant
degree.

Working Capital Practices

Cash provided by operations, along with borrowings under the
Company's revolving lines of credit, are used to pay dividends,
invest in new units and renovate existing units.

Additional information concerning the working capital of the
Company is incorporated herein by reference to information
presented within the "Liquidity and Capital Resources" section of
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" of the Company's 1997 Annual Report to
Shareholders.

Customer Dependence

No material part of the business of the Company is dependent upon
a single customer, or a very few customers, the loss of any one
of which would have a material adverse effect on the Company.

Government Contracts

There is no material portion of the Company's business that is
subject to renegotiation of profits or termination of contracts
or sub-contracts at the election of the Government.

Competition

The health care food and nutrition services business is highly
competitive. The Company competes with national and regional
food contract companies that offer the same type of services as
the Company. Management believes that competition in health care
food and nutrition services is based on pricing, quality of
services and reputation. Management believes that it compares
favorably with its competition in these areas.

Government Compliance

The Company is subject to various regulations at both the state
and local levels for items such as sanitation, health and fire
safety, all of which could affect the operation of an existing
account. The Company's business is also subject to various other
regulations at the federal level such as fair labor standards,
occupational safety and health regulations. Compliance with
these regulations has not had, and is not expected to have, a
material adverse effect on the Company's operations.

Environmental Compliance

Compliance with federal, state and local laws and regulations
which have been enacted or adopted regulating the discharge of
materials into the environment, or otherwise relating to the
protection of the environment, is not expected to have a material
effect upon the capital expenditures, earnings or competitive
position of the Company.

Personnel

The Company employs approximately 3,600 full-time and part-time
employees. The Company believes that working conditions are
favorable and employee compensation is comparable with its
competition.

Item 2. Properties.

MHCI professionally manages foodservice departments on client-
owned properties and, therefore, does not own any significant
amounts of property. Vending services on client-owned facilities
complement the foodservice program. Under the terms of certain
contracts, MHCI is required to make rent payments to its clients.
See Note 5 of the Notes to Consolidated Financial Statements
included in the Annual Report to Shareholders for the fiscal year
ended May 31, 1997.

Facilities and equipment are repaired and maintained to assure
their adequacy, productive capacity and utilization. The
corporate headquarters is located in approximately 14,000 square
feet of a leased building in Smyrna, Georgia. The headquarters'
lease term ends in 2001 with annual average lease payments of
approximately $239,000. The Company also has administrative
offices in a leased building in Mobile, Alabama. This office has
a lease term ending in 2001 with average annual lease payments of
approximately $105,000.

Item 3. Legal Proceedings.

The Company is presently, and from time to time, subject to
pending claims and suits arising in the ordinary course of its
business. In the opinion of Management, the ultimate resolution
of these pending legal proceedings will not have a material
adverse effect on the Company's operations or consolidated
financial position.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Executive Officers of the Company

Executive officers of the Company are appointed by and serve at
the discretion of the Company's Board of Directors. Information
regarding the Company's executive officers as of August 8, 1997 is
provided below.

Name Age Position with the Company

G. A. Davenport 43 President, Chief Executive Officer and Director
K. W. Engwall 49 Senior Vice President, Finance and Assistant Secretary
J. E. Fountain 46 Vice President, General Counsel and Secretary
J. D. Underhill 52 Senior Vice President, Sales and Marketing
C. L. Kolesar 44 Senior Vice President
F. G. Michels 59 Senior Vice President

Glenn A. Davenport has been President and Chief Executive
Officer of the Company since the Distribution in March 1996. He
was President of the Health Care Division of MRI's Morrison Group
from November 1993 until the Distribution in March 1996. Prior
thereto, he served as Senior Vice President, Hospitality Group of
MRI from February 1990 through November 1993 and in various other
capacities since joining MRI in November 1973.

K. Wyatt Engwall has been Senior Vice President, Finance and
Assistant Secretary of the Company since the Distribution in
March 1996. Prior thereto, he was Vice President, Controller of
MRI's Ruby Tuesday Group from January 1994 until March 1996. He
served as Vice President of Financial Planning of MRI from
January 1993 through January 1994, Vice President and Controller
of MRI's Contract Dining Division from October 1991 through
January 1993 and as Controller of MRI's former Morrison's
Management Services (Contract Dining) Division from October 1986
through October 1991. Mr. Engwall joined MRI in 1983 as a
Financial Systems Analyst.

John E. Fountain has been Vice President, General Counsel
and Secretary of the Company since the Distribution in March
1996. He was Vice President, Legal of MRI's Morrison Group from
August 1994 until March 1996. He served as Senior Attorney of
MRI from December 1991 through August 1994. Prior thereto, he
served as Staff Attorney of MRI from October 1978 through
December 1991.

Jerry D. Underhill has been Senior Vice President, Sales and
Marketing of the Company since the Distribution in March 1996.
He was Senior Vice President of Retail Development of the Health
Care Division of MRI's Morrison Group from September 1995 until
March 1996. Prior thereto, he was Senior Vice President of
Development of the Family Dining Division of MRI's Morrison Group
from March 1993 to September 1995. Mr. Underhill was President
of Mid-Continent Restaurants (currently known as Bravo
Restaurants) from July 1988 to March 1993.

Carolyn L. Kolesar has been a Senior Vice President of the
Company since the Distribution in March 1996. She was Division
Vice President of the Health Care Division of MRI's Morrison
Group from April 1995 until March 1996. Prior thereto, she
served as Regional Vice President of MRI's Health Care Division
from July 1988 to April 1995.

Frances G. Michels has been Senior Vice President, Support
Services of the Company since the Distribution in March 1996.
She was Senior Vice President of Support Services of the Health
Care Division of MRI's Morrison Group from January 1996 until
March 1996. Prior thereto, she served MRI's Health Care Division
in various capacities, including as Vice President of Nutrition
Services from December 1984 through January 1996, Area Manager
for Operations and Nutrition Services from January 1982 through
December 1984, Consulting Dietitian for the Health Care Division
from June 1974 through January 1982, Foodservice Director from
July 1973 through June 1974, and Chief Therapeutic Dietitian from
June 1970 through July 1973.

PART II

Item 5. Market for the Registrant's Common Equity and Related
Shareholder Matters.

Certain information required by this item is incorporated herein
by reference to information contained under the caption "Common
Stock Market Prices and Dividends" of the Registrant's Annual
Report to Shareholders for the fiscal year ended May 31, 1997.
The Company intends to continue to pay dividends in the future.

Item 6. Selected Financial Data.

The information contained under the caption "Selected Financial
Data" of the Registrant's Annual Report to Shareholders for the
fiscal year ended May 31, 1997 is incorporated herein by reference.

Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.

The information contained under the caption "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" of the Registrant's Annual Report to Shareholders for
the fiscal year ended May 31, 1997 is incorporated herein by
reference.

Item 8. Financial Statements and Supplementary Data.

The following consolidated financial statements and the related
report of the Company's independent auditors contained in the
Registrant's Annual Report to Shareholders for the fiscal year
ended May 31, 1997, are incorporated herein by reference:

Consolidated Statements of Income - Fiscal years ended
May 31, 1997, June 1, 1996, and June 3, 1995.

Consolidated Balance Sheets - As of May 31, 1997 and June 1, 1996.

Consolidated Statements of Stockholders' Equity - Fiscal years ended
May 31, 1997, June 1, 1996, and June 3, 1995.

Consolidated Statements of Cash Flows - Fiscal years ended
May 31, 1997, June 1, 1996, and June 3, 1995.

Notes to Consolidated Financial Statements.

Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.

None.

PART III

Item 10. Directors and Executive Officers of the Company.

(a) The information regarding directors of the Company is
incorporated herein by reference to the information set forth in
the table captioned "Director and Director Nominee Information"
under "Election of Directors" in the definitive proxy statement
of the Registrant dated August 18, 1997, relating to the
Registrant's annual meeting of shareholders to be held on
September 23, 1997.

(b) Pursuant to Form 10-K General Instruction G(3), the
information regarding executive officers of the Company has been
included in Part I of this Report under the caption "Executive
Officers of the Company."

Item 11. Executive Compensation.

The information required by this Item 11 is incorporated herein
by reference to the information set forth under the captions
"Executive Compensation" and "Election of Directors - Directors'
Fees and Attendance" in the definitive proxy statement of the
Registrant dated August 18, 1997 relating to the Registrant`s
annual meeting of shareholders to be held on September 23, 1997.

Item 12. Security Ownership of Certain Beneficial Owners and Management.

The information required by this Item 12 is incorporated herein
by reference to the information set forth in the table captioned
"Beneficial Ownership of Common Stock" under "Election of
Directors" in the definitive proxy statement of the Registrant
dated August 18, 1997, relating to the Registrant's annual
meeting of shareholders to be held on September 23, 1997.

Item 13. Certain Relationships and Related Transactions.

None.

PART IV

Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) The following documents are incorporated by reference into or are filed
as part of this report:

1. Financial Statements:

The following consolidated financial statements and
the independent auditors' report thereon, included in
the Registrant's Annual Report to Shareholders for
the fiscal year ended May 31, 1997, a copy of which
is contained in the exhibits to this report, are
incorporated herein by reference:

Page Reference
in paper version
of Annual Report
to Shareholders
Consolidated Statements of Income for
the fiscal years ended May 31, 1997,
June 1, 1996 and June 3, 1995 20

Consolidated Balance Sheets as of
May 31, 1997 and June 1, 1996 21

Consolidated Statements of Stockholders' Equity
for the fiscal years ended May 31, 1997,
June 1, 1996 and June 3, 1995 23

Consolidated Statements of Cash Flows
for the fiscal years ended May 31, 1997,
June 1, 1996 and June 3, 1995 22

Notes to Consolidated Financial Statements 24 - 35

Report of Independent Auditors 36

Page Reference
in Form 10K
2. Financial statement schedules:

Schedule II - Valuation and Qualifying
Accounts for the fiscal years ended
May 31, 1997 and June 1, 1996 17

Financial statement schedules other than those shown above
are omitted because they are either not required or the
required information is shown in the financial statements or
notes thereto.

3. Exhibits

The following exhibits are filed as part of this report:

MORRISON HEALTH CARE, INC.
LIST OF EXHIBITS

Exhibit
Number Description

3.1 Amended and Restated Articles of Incorporation of Morrison
Health Care, Inc.*

3.2 Bylaws of Morrison Health Care, Inc.*

4.1 Specimen Common Stock Certificate.+

4.2 Amended and Restated Articles of Incorporation of Morrison
Health Care, Inc. (see Exhibit 3.1 hereto).

4.3 Bylaws of Morrison Health Care, Inc. (see Exhibit 3.2 hereto).

4.4 Form of Rights Agreement between Morrison Health Care, Inc.
and AmSouth Bank of Alabama, as Rights Agent.+

4.5 Form of Rights Certificate (attached as Exhibit B to the
Rights Agreement filed as Exhibit 4.4 hereto).

10.1 Form of Distribution Agreement among Morrison Restaurants
Inc., Morrison Fresh Cooking, Inc. and Morrison Health
Care, Inc.*

10.2 Form of Amended and Restated Tax Allocation and
Indemnification Agreement among Morrison Restaurants Inc.,
Custom Management Corporation of Pennsylvania, Custom
Management Corporation, John C. Metz & Associates, Inc.,
Morrison International, Inc., Morrison Custom Management
Corporation of Pennsylvania, Morrison Fresh Cooking, Inc.,
Ruby Tuesday, Inc., a Delaware corporation, Ruby Tuesday
(Georgia), Inc., a Georgia corporation, Galaxy Management,
Inc., Manask Food Service, Inc., Morrison of New Jersey,
Inc., Tias, Inc. and Morrison Health Care, Inc.*

10.3 Form of Agreement Respecting Employee Benefit Matters among
Morrison Restaurants Inc., Morrison Fresh Cooking, Inc. and
Morrison Health Care, Inc.+

10.4 Form of License Agreement between Morrison Fresh Cooking,
Inc. and Morrison Health Care, Inc.*

10.5 Form of License Agreement between Ruby Tuesday, Inc.
and Morrison Health Care, Inc.*

10.6 Form of Amended and Restated Operating Agreement of MRT
Purchasing, LLC among Morrison Restaurants Inc., Ruby
Tuesday, Inc., Morrison Fresh Cooking, Inc. and Morrison
Health Care, Inc.*

10.7** Form of Morrison Health Care, Inc. 1996 Stock Incentive Plan.+

10.8** Form of Morrison Health Care, Inc. Stock Incentive and
Deferred Compensation Plan for Directors.+

10.9** Form of 1996 Non-Executive Stock Incentive Plan.+

10.10** Form of Morrison Health Care, Inc. Executive Supplemental
Pension Plan.+

10.11** Form of Morrison Health Care, Inc. Management Retirement
Plan.+

10.12** Form of Morrison Health Care, Inc. Salary Deferral Plan
together with related form of Trust Agreement.+

10.13** Form of Morrison Health Care, Inc. Deferred Compensation Plan
and related form of Trust Agreement.+

10.14** Form of Morrison Health Care, Inc. Executive Group Life and
Executive Accidental Death and Dismemberment Plan.+

10.15** Form of Morrison Health Care, Inc. Executive Life Insurance
Plan.+

10.16 Form of Indemnification Agreement to be entered into with
executive officers and directors.*

10.17** Form of Change of Control Agreement to be entered into with
executive officers.+

10.18 Non-Qualified Stock Option Agreement between Morrison
Restaurants Inc. and Eugene E. Bishop.+

10.19 Non-Qualified Stock Option Agreement between Morrison
Restaurants Inc. and Samuel E. Beall, III.+

10.20 Form of Second Amendment to Credit Agreement dated
June 14, 1997.

10.21** Form of First Amendment to the Morrison Health Care, Inc.
Executive Supplemental Pension Plan.

10.22** Form of First Amendment to the Morrison Health Care, Inc.
Management Retirement Plan.

10.23** Form of First Amendment to the Morrison Health Care, Inc.
Salary Deferral Plan.

10.24** Form of Second Amendment to the Morrison Health Care, Inc.
Salary Deferral Plan.

10.25** Form of First Amendment to the Morrison Health Care, Inc.
Deferred Compensation Plan.

10.26** Form of Second Amendment to the Morrison Health Care, Inc.
Deferred Compensation Plan.

11 Statement regarding computation of per share earnings.

13 Annual Report to Shareholders for the fiscal year ended
May 31, 1997 (Only portions specifically incorporated by
reference in the Form 10K are incorporated herewith.)

21.1 List of subsidiaries of Morrison Health Care, Inc.

23 Consent of Independent Auditors.

27 Financial Data Schedule.

* Incorporated by reference to Exhibit of the same number
in the Registrant's Registration Statement on Form 10
filed with the Commission on February 8, 1996.

+ Incorporated by reference to Exhibit of the same number
in the Registrant's amendment to Registration Statement
on Form 10/A filed with the Commission on February 29, 1996.

** Denotes a management contract or compensatory plan or arrangement.

(b) Reports on Form 8-K

There were no reports filed on Form 8-K during the most recent
fiscal quarter.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

MORRISON HEALTH CARE, INC.

Date 08/25/97 By:/s/ Glenn A. Davenport
Glenn A. Davenport
President, Chief Executive Officer and
Director

Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and
on the dates indicated:

Date 08/25/97 By:/s/ Glenn A. Davenport
Glenn A. Davenport
President, Chief Executive Officer and
Director

Date 08/25/97 By:/s/ K. Wyatt Engwall
K. Wyatt Engwall
Senior Vice President,
Finance and Assistant Secretary
(Principal Accounting Officer)

Date 08/25/97 By:/s/ John. B. McKinnon
J. B. McKinnon
Chairman of the Board

Date 08/25/97 By:/s/ Claire L. Arnold
Claire L. Arnold
Director

Date 08/25/97 By:/s/ E. Eugene Bishop
E. Eugene Bishop
Director

Date 08/21/97 By:/s/ Fred L. Brown
Fred L. Brown
Director

Date 08/19/97 By:/s/ Arthur R. Outlaw, Jr.
Arthur R. Outlaw, Jr.
Director

Date 08/19/97 By:/s/ Dr. Benjamin F. Payton
Dr. Benjamin F. Payton
Director

Morrison Health Care, Inc.
Schedule II - VALUATION AND QUALIFYING ACCOUNTS
For the Periods Ended May 31, 1997 and June 1, 1996
(Dollars in Thousands)

Column A Column B Column C Column D (A) Column E
Additions
Balance at Charged to Charged to Balance at
Beginning Costs Other End
Description of Period Expenses Accounts Deductions of Period

Year ended May 31, 1997:
Trade receivables:
Allowance for doubtful
accounts............... $1,122 $0 $0 $378 $ 744

Year ended June 1, 1996:
Trade receivables:
Allowance for doubtful
accounts................ $1,641 $0 $0 $519 $1,122

Notes:
(A) Write-off of trade receivables determined to be uncollectible against
the allowance for doubtful accounts.