FORM 4
[ X ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).         
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

1. Name and Address of Reporting Person *

PETERSON JIM L
2. Issuer Name and Ticker or Trading Symbol

BACK YARD BURGERS INC [ BYBI ]
5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

__ X __ Director                      _____ 10% Owner
_____ Officer (give title below)      _____ Other (specify below)
(Last)          (First)          (Middle)

P. O. BOX 1338
3. Date of Earliest Transaction (MM/DD/YYYY)

11/5/2007
(Street)

GOLIAD, TX 77963
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Trans. Date 2A. Deemed Execution Date, if any 3. Trans. Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Common Stock   11/5/2007     D (1)    5000   D $6.5   0   D    

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Trans. Date 3A. Deemed Execution Date, if any 4. Trans. Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
6. Date Exercisable and Expiration Date 7. Title and Amount of Securities Underlying Derivative Security
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (right to buy)   $1.4375   11/5/2007           60000    9/1/2000   (2) 3/1/2010   Common Stock   60000     (3) 0   D    
Stock Option (right to buy)   $3.9   11/5/2007           5000    7/1/2003   (4) 1/1/2013   Common Stock   5000     (3) 0   D    
Stock Option (right to buy)   $6.239   11/5/2007           5000    7/1/2004   (4) 1/1/2014   Common Stock   5000     (3) 0   D    
Stock Option (right to buy)   $5   11/5/2007           5000    2/12/2006   (4) 8/12/2015   Common Stock   5000     (3) 0   D    

Explanation of Responses:
( 1)  Disposed of in connection with the merger of Issuer with BBAC Merger Sub, Inc. effective November 5, 2007 (the "Merger") pursuant to the Agreement and Plan of Merger dated as of June 10, 2007 by and among Issuer, BBAC, LLC, and BBAC Merger Sub, Inc. In connection with the Merger, outstanding shares of Issuer's common stock were exchanged for the right to receive $6.50 per share.
( 2)  Vests (i) 34% on this date; (ii) 33% on the first anniversary of the grant date; and (iii) 33% on the second anniversary of the grant date. Immediately prior to the effective time of the Merger, all unvested stock options became fully vested and immediately exercisable.
( 3)  This stock option was cancelled in the Merger in exchange for a cash payment equal to (i) the excess, if any, between the Merger consideration of $6.50 over the exercise price of the stock option, multiplied by (ii) the number of shares of common stock subject to the stock option.
( 4)  Fully vested on this date.

Reporting Owners
Reporting Owner Name / Address
Relationships
Director 10% Owner Officer Other
PETERSON JIM L
P. O. BOX 1338
GOLIAD, TX 77963
X



Signatures
Jim L. Peterson by Christina L. Rouby, Attorney-in-Fact 11/5/2007
** Signature of Reporting Person Date


Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
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