BRUNO'S INCOME DOUBLES, SALES FALL 1% IN QUARTER

BIRMINGHAM, Ala. -- Bruno's here said earnings more than doubled to $9.4 million in the third quarter ended April 9.

> Ronald Bruno, chairman and chief executive officer of the 258-store chain, said the company has focused on improving its competitive standing and cost cutting.

"For example, on April 4 we converted nine FoodMax stores in the Atlanta market area to the Bruno's format," he said. "With this change, we can simplify our marketing efforts and lower our overall operating costs."

Bruno said the Bruno's format is well-suited to the large, urban Atlanta market, which is the company's second-largest operating area with about 16 stores.

Additionally, Bruno said recent changes in the company's reporting structure, especially as they relate to regional sales teams, have proven more responsive to current market demands.

Debra Levin, a securities analyst at Morgan Stanley, New York, said Bruno's earnings of 12-cents per share exceeded expectations. She attributed this to improved gross margins.

In a recent industry report, Levin said Bruno's management restructuring has "essentially flattened the organizational structure." The change moves regional sales teams "closer to the customer base" and facilitates decision-making for lower-level management.

Rick Church, a securities analyst at Smith Barney Shearson, New York, said Bruno's weak sales trends "reflect a significant amount of new square footage" in its market areas. "Modestly better sales trends can be expected over the next year or two as this new square footage gradually cycles," he said.

3rd-QUARTER RESULTS

Qtr. Ended 4/9/94 4/3/93

Sales $764.6 million $762.1 million

Change 0.3%

Same-store -1.0%

Net Income $9.4 million $4.4 million

Change 116%

Inc/Share 12 cents 6 cents

40 Weeks 1994 1993

Sales $2.17 billion $2.15 billion

Change 1.0%

Net Income $24.7 million $33.6 million

Change -26.6%

Inc/Share 32 cents 42 cents