The Texas company itself is financially healthy, posting a third-quarter profit of $659,000 or nine cents per diluted share on revenue of $15.5 million, up from a profit of $144,000 on two cents per diluted share in third quarter 2000. The chain has 692 restaurants, down from 744 in 1999.

Schlotzky's charges $182,300 in upfront costs to an operator leasing a company-owned location, generally sized at an average 20,000 sf. A fully-owned, free-standing location costs $269,340.

The company's common was trading on the Nasdaq at noon today at $5.74 per share, down 15 cents from yesterday. Volume was 5,400. The stock's 52-week high-low is $9 and $2.06. The company has 7.28 million shares outstanding and a market capitalization of $41.8 million. The stock's price/earnings ratio is 22.96.