<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED BALANCE SHEETS AND CONDENSED CONSOLIDATED STATEMENTS OF INCOME ON PAGES TWO AND THREE OF THE COMPANY'S FORM 10-K FOR THE YEAR-TO-DATE AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0001002178 <NAME> SCHLOTZSKY'S INC. <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 16,824,068 <SECURITIES> 0 <RECEIVABLES> 24,066,702 <ALLOWANCES> (1,415,498) <INVENTORY> 0 <CURRENT-ASSETS> 40,981,517 <PP&E> 20,830,592 <DEPRECIATION> (2,300,846) <TOTAL-ASSETS> 104,228,140 <CURRENT-LIABILITIES> 19,748,547 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 62,877 <OTHER-SE> 73,899,715 <TOTAL-LIABILITY-AND-EQUITY> 104,228,140 <SALES> 7,720,432 <TOTAL-REVENUES> 41,847,912 <CGS> 2,513,156 <TOTAL-COSTS> 33,971,100 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 972,724 <INTEREST-EXPENSE> (2,058,262) <INCOME-PRETAX> 9,935,074 <INCOME-TAX> 3,728,609 <INCOME-CONTINUING> 6,206,465 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 6,206,465 <EPS-PRIMARY> .84 <EPS-DILUTED> .82