Exhibit 99.1

CHECKERS DRIVE-IN RESTAURANTS, INC.

4300 West Cypress Street, Suite 600 * Tampa, FL 33607 * (813) 283-7000 * (813) 283-7001

CONTACT: David Koehler, Chief Financial Officer

Checkers Drive-In Restaurants, Inc.

813-283-7000

CHECKERS

REPORTS SECOND QUARTER 2003 RESULTS

FULLY DILUTED EARNINGS PER SHARE INCREASED 68.4% TO $0.32

TAMPA, FL., July 10, 2003—Checkers Drive-In Restaurants, Inc. (NASDAQ: CHKR) today announced its financial results for the second quarter ended June 16, 2003.

Highlights for the second quarter 2003 compared to the same period last year were as follows:

* Company-owned same store sales increased 11.9%

* Franchise same store sales increased 4.0%

* Total revenues increased 7.7% to $46.0 million

Highlights for the first two quarters of fiscal 2003 compared to fiscal 2002 were as follows:

* Total revenues increased 7.1% to $89.1 million

* Fully diluted earnings per share increased 42.5% to $0.57

* Company-owned same store sales increased 9.2%

* Franchise same store sales increased 1.6%

Second quarter 2003 results

Total revenues including franchise royalty and fee income increased 7.7% to $46.0 million for the quarter ended June 16, 2003 as compared to $42.7 million in the same period ended June 17, 2002. During the quarter, Company-owned restaurants produced revenues of $42.2 million, an 8.0% increase over the $39.1 million generated in 2002. The increase in revenues during the quarter was driven primarily by an 11.9% increase in year-over-year Company-owned same store sales as the restaurants benefited from increased traffic and accelerated service times due to our previous investment in people and technology at the store level.

Franchise royalty revenue increased 6.7% to $3.7 million primarily as a result of franchise same store sales increasing 4.0% year-over-year.

Net income increased 54.1% to $4.1 million compared to net income of $2.7 million in the same period last year. In addition, fully diluted earnings per share increased 68.4% to $0.32 in the quarter versus $0.19 per share a year ago.

As of July 10, 2003, we have opened 7 system-wide new restaurants year to date. Four new franchise restaurants opened during the second quarter in addition to the 2 that opened during the first quarter. Since the end of the second quarter, the Company opened one new restaurant in New Orleans, Louisiana. For the remainder of 2003, we expect to open an additional 8 to 12 system-wide restaurants (3 Company-owned and 5 to 9 franchise owned).

Keith Sirois, Checkers Drive-In Restaurants, Inc.’s Chief Executive Officer and President, stated: “We were pleased to report strong second quarter results. Our improvement in operations and earnings continues to be the result of an experienced management team focusing on the full utilization of technology, marketing and advanced training techniques that ultimately combine to drive strong Company-owned same store sales results. Additionally, during the quarter, our franchisees that have invested in such technology and training are starting to reap the benefits, with significant improvement in same store sales.”

First two quarters fiscal 2003 results

Total revenues including franchise royalty and fee income increased to $89.1 million for the first six periods ended June 16, 2003 as compared to $83.1 million for the same period ended June 17, 2002. For the first six periods of fiscal 2003, corporate-owned stores generated revenues of $81.9 million in 2003 versus $76.1 million in 2002 with year-over-year same store sales increasing 9.2%.

During the first six periods of fiscal 2003, franchise royalty revenues increased to $7.0 million from $6.8 million a year ago. The increase in royalties during the two quarters was driven partially by a 1.6% increase in year-over-year franchise-owned same store sales. Franchise fees and other income remained relatively flat in the first six periods of fiscal 2003 as compared to same period in fiscal 2002.

For the first six periods of fiscal 2003, Checkers Drive-In Restaurants, Inc. reported net income of $7.3 million or $0.57 per diluted share compared to net income of $5.3 million, or $0.40 per diluted share in 2002.

Mr. Sirois continued: “Checkers/Rally’s remains focused on improving execution by investing in technology and our people. Management retention and staffing levels continue to improve, and as a result, our execution at the store level has solid momentum.”

Mr. Sirois concluded: “While our marketing strategies are designed to deliver increased traffic, the improvement in our repeat customer business is a tribute to our fast service and high quality food initiatives. Going forward, our goal is to build upon our prior success by focusing on prudent expansion and continued improvement of same-store-sales at both our owned and franchised restaurants.”

About Checkers Drive-In Restaurants, Inc.

Checkers is headquartered in Tampa, Florida. For more information about the Company, please visit www.checkers.com.

To access the quarterly call discussing the Company’s financial results for the second quarter ended June 16, 2003 on Thursday, July 10, 2003 at 8:30 a.m. Eastern Day Light Savings Time, you may do so over CCBN’s Investor Distribution Network. Individual investors can listen to the call at www.companyboardroom.com and institutional investors can access the call via CCBN’s password-protected event management site, StreetEvents—www.streetevents.com. The discussion can also be listened to live, toll free by calling 1-800-915-4836 or accessed at Checkers Drive-In Restaurants, Inc.’s web site at www.checkers.com.

Except for historical information, this announcement contains “forward-looking” and “Safe Harbor” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. These forward-looking and Safe Harbor statements reflect management’s expectations based upon currently available information and data; however, actual results are subject to future events and uncertainties, which could cause actual results to materially differ from those projected in these statements. Factors that can cause actual results to materially differ include, but are not limited to: the uncertainties associated with litigation; increased advertising, promotions and discounting by competitors which may adversely affect sales; the ability of the Company and its franchisees to open new restaurants and operate new and existing restaurants profitability; increases in food, labor, utilities, employee benefits and similar costs; economic and political conditions where the Company or its franchisees operate; and new product and concept developments by food industry competitors. Further information regarding factors that could affect the Company’s financial and other results is included in the Company’s Forms 10Q and 10K, filed with the Securities and Exchange Commission.

CHECKERS DRIVE-IN RESTAURANTS, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(Dollars in thousands except per share amounts)

(UNAUDITED)

	Quarter Ended						Two Quarters Ended
	June 16, 2003			June 17, 2002			June 16, 2003			June 17, 2002
REVENUES:
Restaurant sales	$	42,160		$	39,055		$	81,879		$	76,148
Franchise royalty revenue		3,715			3,480			7,023			6,802
Franchise fees and other income		107			171			161			175
Total revenues	$	45,982		$	42,706		$	89,063		$	83,125
COSTS AND EXPENSES:
Restaurant food and paper costs		13,271			11,924			25,712			23,171
Restaurant labor costs		12,500			11,904			24,548			23,691
Restaurant occupancy expenses		2,851			2,850			5,837			5,458
Restaurant depreciation and amortization		1,303			1,315			2,591			2,607
Other restaurant operating expenses		5,074			5,733			9,774			10,422
General and administrative expenses		3,655			2,818			6,844			5,807
Advertising		2,500			2,197			5,001			4,323
Bad debt expense		53			100			216			200
Non-cash compensation		23			23			46			46
Other depreciation and amortization		194			155			376			307
Impairment of long lived assets		65			492			65			492
Restaurant retirement costs		18			42			32			417
Gain on sale of assets		(87	)		(26	)		(263	)		(103	)
Total costs and expenses		41,420			39,527			80,779			76,838
Operating income		4,562			3,179			8,284			6,287
OTHER INCOME (EXPENSE):
Interest income		274			318			535			715
Interest expense		(644	)		(830	)		(1,339	)		(1,644	)
Income before minority interests, income tax expense and cumulative effect of a change in accounting principle		4,192			2,667			7,480			5,358
Minority interests in operations of joint ventures		(19	)		(2	)		(37	)		(29	)
Income before income tax expense and cumulative effect of a change in accounting principle		4,173			2,665			7,443			5,329
Income tax expense		66			—			66			—
Income before cumulative effect of a change in accounting principle		4,107			2,665			7,377			5,329
Cumulative effect of a change in accounting principle—net of income tax effect		—			—			(51	)		—
Net income	$	4,107		$	2,665		$	7,326		$	5,329
Comprehensive income	$	4,107		$	2,665		$	7,326		$	5,329
Basic net earnings per share	$	0.34		$	0.22		$	0.60		$	0.47
Diluted net earnings per share	$	0.32		$	0.19		$	0.57		$	0.40
Weighted average number of common shares outstanding:
Basic		12,000			11,892			12,136			11,426
Diluted		12,790			13,699			12,895			13,277

CHECKERS DRIVE-IN RESTAURANTS, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(UNAUDITED)

	June 16, 2003			December 30, 2002
Current Assets:
Cash and cash equivalents	$	11,771		$	14,323
Restricted cash		4,176			3,821
Accounts, notes and leases receivable, net		2,403			2,667
Inventory		1,184			1,026
Prepaid expenses and other current assets		1,586			2,309
Property and equipment held for sale		1,277			1,619
Total current assets		22,397			25,765
Property and equipment, net		45,366			43,145
Notes receivable, net—less current portion		3,746			3,926
Leases receivable, net—less current portion		5,592			5,810
Intangible assets, net		44,599			44,728
Other assets, net		1,587			1,661
	$	123,287		$	125,035
Current Liabilities:
Current maturities of long-term debt and obligations under capital leases	$	3,299		$	3,243
Accounts payable		3,974			6,243
Reserves for restaurant relocations and abandoned sites		1,255			1,446
Accrued wages and benefits		2,576			2,353
Accrued liabilities		6,233			7,194
Total current liabilities		17,337			20,479
Long-term debt, less current maturities		20,774			21,684
Obligations under capital leases, less current maturities		5,572			6,057
Long-term reserves for restaurant relocations and abandoned sites		5,699			6,282
Minority interests in joint ventures		145			123
Deferred revenue		4,582			4,900
Other long-term liabilities		4,960			4,981
Total liabilities		59,069			64,506
Stockholders’ Equity:
Preferred stock, $.001 par value, authorized 2,000,000 shares, none issued at June 16, 2003 and December 30, 2002		—			—
Common stock, $.001 par value, authorized 175,000,000 shares, issued 12,334,395 at June 16, 2003 and 12,317,601 at December 30, 2002		12			12
Additional paid-in capital		145,780			145,678
Accumulated deficit		(77,329	)		(84,629	)
		68,463			61,061
Less: Treasury stock, 602,431shares at June 16, 2003 and 48,242 shares at December 30, 2002, at cost		(4,245	)		(465	)
Note receivable—officer		—			(67	)
Total stockholders’ equity		64,218			60,529
	$	123,287		$	125,035

RESTAURANTS OPERATING IN THE SYSTEM FOR THE QUARTERS ENDED

	Sept. 10, 2001		Dec. 31, 2001		March 25, 2002		June 17, 2002		Sept. 9, 2002		Dec. 30, 2002		March 24, 2003		June 16, 2003
Company-operated:
Beginning of quarter	207		236		235		255		253		248		248		242
Openings/transfers in	29		1		23		2		—		—		—		—
Closings/transfers out	—		(2	)	(3	)	(4	)	(5	)	—		(6	)	—
End of quarter	236		235		255		253		248		248		242		242
Franchise:
Beginning of quarter	640		606		586		540		541		541		536		536
Openings/transfers in	1		5		—		3		7		3		2		4
Closings/transfers out	(35	)	(25	)	(46	)	(2	)	(7	)	(8	)	(2	)	(1	)
End of quarter	606		586		540		541		541		536		536		539
	842		821		795		794		789		784		778		781