Brazil Fast Food Reports 2006 Fourth Quarter

Brazil Fast Food (OTC BB: BOBS), a 534-outlet fast-food chain and the second largest fast-food chain operator in Brazil, today announced financial results for its fourth quarter and year ended Dec. 31, 2006.

System-wide sales for the Company's 'Bob's' chain were R$124.4 million for the fourth quarter of 2006, up 17 percent from R$106.4 million for the last three months of 2005. Net restaurant sales for Brazil Fast Food Corp.'s company-owned retail outlets were R$21.5 million for the fourth quarter of 2006 compared with R$22.5 million for the fourth quarter of 2005. Net franchise revenue was R$4.7 million for the three-month period ended Dec. 31, 2006 - up 29 percent from 2005's fourth-quarter net franchise revenue of R$3.7 million. The Company's operating income rose 10 percent to R$2.9 million for the fourth quarter of 2006 from R$2.6 million for the same period of 2005. Net income climbed for the fourth quarter of 2006 to R$5.8 million, or R$0.70 per share, basic and diluted, from R$2.6 million, or R$0.32 per share, basic and diluted, for the fourth quarter of 2005. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose for the fourth quarter of 2006 to R$3.6 million, or R$0.44 per share, basic and diluted, from R$3.4 million, or R$0.43 per share, basic and diluted, for the fourth quarter of 2005.

For the twelve-moth period ended Dec. 31, 2006, Brazil Fast Food reported system-wide sales of R$426.3 million, up 23 percent from R$346.1 million for 2005. Net restaurant sales increased seven percent to R$80.9 million for 2006 from R$75.6 million for 2005. Net franchise revenue rose 37 percent to R$16.4 million for 2006 from R$12.0 million for 2005. The Company's operating income was R$8.9 million for the year of 2006, up 42 percent from R$6.2 million for 2005. Net income increased on a year-over-year basis - R$9.9 million, or R$1.22 per share, basic and diluted, compared with R$4.4 million, or R$0.55 per share, basic and diluted, for 2006 and 2005, respectively. EBITDA rose for 2006 to R$11.8 million, or R$1.45 per share, basic and diluted, from R$9.6 million, or R$1.19 per share, basic and diluted, for 2005.

The Company's financial results for 2006 include a non-recurring item. After three years of consecutive positive results, Venbo Comércio de Alimentos Ltda. - a subsidiary of 22N Participações Ltda., a holding company wholly owned by Brazil Fast Food Corp. - still had accumulated losses from past negative financial results. This reduces the Company's income tax bill in Brazil. Because our external consultants (those who assisted us in our recent corporate restructuring) projected - as of Dec. 31, 2006 - taxable income for Venbo for the next 10 years, Brazil Fast Food accounted for R$4.5 million of net deferred tax for 2006. The recognition of this in the 'Other Receivables and Other Assets' category also increased our income statement by R$4.5 million for 2006.

Ricardo Figueiredo Bomeny, Chief Executive Officer of Brazil Fast Food Corp., commented, 'Our Company has come a long way and overcome some serious obstacles to arrive at this point in our journey. Having resolved certain issues that threatened the immediate and short-term future of our Company, Brazil Fast Food is no longer deemed a 'going concern' by our external auditors. Without the stigma of this label and the risk it implies, we believe that the future valuation of our shares will reflect a positive shift in the perception of our Company among investors and analysts.

'The Brazilian economy has remained favorable, providing us with a hospitable environment for profitable growth. Our financial improvement and operational accomplishments have been progressively more significant and our financial health and prospects are increasingly strong. We believe that this will continue. Such is the strength of our conviction that, during 2006, we continued to repurchase shares of Brazil Fast Food stock.'

Brazil Fast Food 2006 highlights:

• We opened our 500th Bob's restaurant.
• We expanded our chain by 66 outlets, net, ending the year with a total of 517 points of sale.
• We realized across-the-board improvements to our top and bottom line, including a 42 percent increase in operating income, to R$8.9 million for 2006 from R$6.2 million for 2005.
• We completely eliminated our short-term debt obligations and ended the year with R$3.8 million in cash and cash equivalents.
• Total Shareholders' Equity increased dramatically to R$10.3 million for 2006 from R$34,000 for 2005.
• Our Board of Directors approved a new stock repurchase plan, authorizing the Company to repurchase of as many as 200,000 shares of its own common stock. Over the course of 2006, Brazil Fast Food repurchased a total of 100,035 shares.
• We revised our marketing policy to boost sales at both our Company-owned and franchised stores.
• We brought in additional revenue and increased our exposure by participating as a food vendor at such major special events as Carnival in Rio de Janeiro and the U2 rock concert in São Paulo.

Mr. Bomeny continued, 'Our outlook for 2007 is decidedly positive. Although we have demonstrated the effectiveness of our multi-pronged strategy, we continually re-examine our approach and hone our practices to achieve more ambitious goals. We have already taken preliminary steps to consolidate our businesses through a corporate restructuring, which, among many other meaningful benefits, has given us greater flexibility to seize new business opportunities. This facilitated us reaching a mutual agreement with Yum! Brands to develop, expand and manage the Brazilian operations of KFC - the world's largest chicken restaurant chain. We will now have a new source of revenue with the potential to increase significantly over time. Owning, operating, franchising and expanding the Bob's chain remain our core business, however, we believe that by leveraging our Company's strengths and accomplishments, we can enhance our growth with the development of multiple revenue streams.'

ABOUT BRAZIL FAST FOOD CORP.
Brazil Fast Food Corp. owns and operates, both directly and through franchisees, the second largest chain of hamburger fast-food restaurants in Brazil, through its wholly owned subsidiaries, 22N Participações Ltda. and Venbo Comércio de Alimentos Ltda. Brazil Fast Food Corp. conducts business in Brazil under the trade name 'Bob's.' As of March 28, 2007, the Company had 534 points of sale, which includes traditional restaurants, kiosks and re-locatable trailers.



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