Background: We assessed the cost-effectiveness and student outcomes related to providing breakfast in the classroom (BIC) setting versus breakfast in the traditional school cafeteria (Cafe). Methods: The sample included 2906 African American and Hispanic students attending urban elementary and middle schools in a city in the Northeastern United States. Teachers and other school personnel completed interviews. Teachers completed an online survey. Results: School absences were lower for students in the BIC program than in the Cafe program. The school suspension rate was lower for the BIC students than the Cafe students. A larger percentage of BIC students (80%) ate breakfast than Cafe students (30%). The BIC program was more cost-effective than the Cafe program. Conclusions: Our findings demonstrate that low-income students in the BIC program showed improved attendance and increased breakfast consumption. Students who consume a healthy in-class breakfast may develop better eating habits and academic performance.