BAB, Inc. (OTCBB: BABB), announced its financial results for its fiscal year-ended November 30, 2011, reporting net income of $394,000, or $0.05 per share.

For the year ended November 30, 2011, BAB had revenues of $3,023,000 and net income of $394,000, or $0.05 per share, versus revenues of $2,914,000 and net income of $410,000, or $0.06 per share for the same period in 2010.

Total operating expenses for the year ended November 30, 2011, were $2,620,000 versus $2,502,000 for year ended November 30, 2010.

BAB, Inc. operates, franchises, and licenses Big Apple Bagels ®, My Favorite Muffin ® Jacobs Bros. Bagels ® and Brewster's ® Coffee. The Company's stock is traded on the OTCBB under the symbol BABB and its web site can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "estimate," "project," "intend," "expect," "should," "would," "believe" and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company's actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company's SEC filings.

(TABLE FOLLOWS)

     
BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
         
Fiscal Year Ended
 
2011   2010   % Change
REVENUES
 
Royalty fees from franchised stores 1,760,240 1,737,361 1.3 %
Franchise and area development fee revenue 281,200 105,000 167.8 %
Net sales by company-owned stores 403,006 445,157 -9.5 %
Licensing fees and other income 578,830     626,223     -7.6 %
3,023,276 2,913,741 3.8 %
 
OPERATING COSTS AND EXPENSES
 
Food, beverage and paper costs 137,676 134,957 2.0 %
Store payroll and other operating expenses 259,472 285,436 -9.1 %
Selling, general and administrative 2,196,083 2,053,430 6.9 %
Depreciation and amortization 26,389     28,404     -7.1 %
2,619,620 2,502,227 4.7 %
 
Income before interest and other 403,656 411,514 -1.9 %
 
Interest expense (8,296 ) (9,507 ) -12.7 %
Interest and other income 3,703 7,521 -50.8 %
Income tax provision (5,000 ) - N/M
 
Income (loss) before provision for income taxes 394,063     409,528     N/M  
 
Deferred income tax benefit - - N/M
         
Net Income (loss) 394,063     409,528     N/M  
 
Earnings per share - basic 0.05 0.06 N/M
Average number of shares outstanding 7,263,508 7,263,508 N/M
 
Earnings per share - diluted 0.05 0.06 N/M
Average number of shares outstanding 7,264,965 7,263,508 N/M

BAB, Inc.
Michael K. Murtaugh, (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com