SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549

                           FORM 10-QSB

(Mark One)
[x]  Quarterly Report under Section 13 or 15 (d) of the
     Securities Exchange Act of 1934

For the quarterly period ended January 11, 1998

                               OR
                                
[  ] Transition Report Pursuant to Section 13 Or 15 (D) of the
     Securities Exchange Act Of 1934

Commission file number 0-12701

For the transition period from _______________ to _____________

                  -----------------------------

                           CUCOS INC.
                                
(Exact name of small business issuer as specified in its charter)

                      LOUISIANA                             72-0915435
           (State or other jurisdiction of                (IRS Employer
           incorporation or organization)              Identification No.)
                                                                 
 110 Veterans Blvd., Suite 222, Metairie, Louisiana           70005
      (Address of principal executive offices)              (Zip Code)

Issuer's telephone number, including area code--504-835-0306

Check  whether the issuer: (1) has filed all reports required  to
be  filed by Section 13 or 15 (d) of the Exchange Act during  the
post  12  months (or for such shorter period that the  registrant
was  required to file such reports), and (2) has been subject  to
such filing requirements for the past 90 days.

Yes [ X ] No [    ]

State  the  number of shares outstanding of each of the  issuer's
classes  of  common  equity, as of the latest  practicable  date:
2,113,747 shares of common stock, no par value, as of January 31,
1998.

Transitional Small Business Disclosure Format (check one):

Yes [   ] No [ X ]


Part I--Financial Information

ITEM I.  FINANCIAL STATEMENTS

                           CUCOS INC.
                         BALANCE SHEETS
                                                                   Jan. 11, 1998
                                                                       Unaudited
Assets                                                                          
Current Assets                                                                  
     Cash and Cash Equivalents                                          $573,000
     Receivables:                                                               
       Trade                                                             478,000
       Due from Affiliates                                               202,000
       Less Allowance for Doubtful Accounts                              169,000
                                                                         511,000
                                                                                
     Inventories                                                         252,000
     Prepaid Expenses, Deferred Taxes and Other Current Assets           446,000
       TOTAL CURRENT ASSETS                                            1,782,000
                                                                                
Deferred Taxes and Noncurrent Assets                                     270,000
                                                                                
Property, Equipment and Other                                                   
     Land                                                                327,000
     Property and Equipment                                            3,924,000
     Building and Leasehold Improvements                               5,461,000
     Reacquired Franchise Rights                                         529,000
                                                                      10,241,000
     Less Accumulated Depreciation and Amortization                    4,379,000
                                                                       5,862,000
                                                                                
Investment in LaMexiCo, LLC                                              241,000
Assets Held for Resale                                                   102,000
Deferred Costs Less Accumulated Amortization                             499,000
TOTAL ASSETS                                                         $ 8,756,000
                                                                                
Liabilities and Shareholders' Equity                                            
Current Liabilities                                                             
     Short-Term Debt Payable to Banks                                $         -
     Trade Accounts Payable                                            1,738,000
     Accrued Expenses and Other                                          538,000
     Accrued Payroll                                                     194,000
     Current Portion of Long-Term Debt                                   383,000
       TOTAL CURRENT LIABILITIES                                       2,853,000
                                                                                
Long-Term Debt, Less Current Portion                                   3,548,000
Convertible Debentures - Non-Interest Bearing                            421,000
Deferred Revenue and Other                                               194,000
                                                                                
Shareholders' Equity                                                            
     Preferred Stock, No Par Value - 1,000,000 Shares                           
       Authorized, None Issued or Outstanding                                  -
     Common Stock, No Par Value - 20,000,000 Shares                             
       Authorized, 2,113,747 Shares Issued and Outstanding             4,746,000
     Additional Paid-in Capital                                          228,000
     Retained Earnings (Deficit)                                     (3,234,000)
       TOTAL SHAREHOLDERS' EQUITY                                      1,740,000
TOTAL LIABILITIES AND EQUITY                                          $8,756,000
                                                                                
See Notes to Financial Statements


Part I--Financial Information
[CAPTION]
<TABLE>
                           CUCOS INC.
                    STATEMENTS OF OPERATIONS
                            UNAUDITED


                                                                12 Weeks       12 Weeks       28 Weeks       28 Weeks
                                                                  Ended          Ended          Ended          Ended
                                                              Jan 11, 1998   Jan 12, 1997   Jan 11, 1998   Jan 12, 1997
                                                                                                                      
Restaurant Operations                                                                                                 
 <S>                                                           <C>            <C>           <C>            <C>
 Sales of Food and Beverages                                   $4,840,000     $4,737,000    $11,345,000    $11,386,000
 Restaurant Expenses:                                                                                                 
   Cost of Sales                                                1,284,000      1,264,000      3,024,000      3,061,000
   Restaurant Labor and Benefits                                1,642,000      1,542,000      3,785,000      3,665,000
   Other Operating Expenses                                       847,000        812,000      2,055,000      2,038,000
   Occupancy Costs                                                537,000        502,000      1,212,000      1,179,000
   Preopening Costs                                                23,000         29,000         22,000         67,000
     Total Restaurant Expenses                                  4,333,000      4,149,000     10,098,000     10,010,000
Income from Restaurant Operations                                 507,000        588,000      1,247,000      1,376,000
                                                                                                                      
Royalties and Franchise Revenues, Net of Expenses                                                                     
   of $6,000 and 7,000; $13,000 and $16,000                        25,000         17,000         59,000         44,000
Commissary and Other Income                                        40,000         39,000        110,000        109,000
                                                                  572,000        644,000      1,416,000      1,529,000
                                                                                                                      
Operations Expenses                                               176,000        275,000        472,000        608,000
Corporate Expenses                                                332,000        369,000        731,000        780,000
Operating Income                                                   64,000              -        213,000        141,000
                                                                                                                      
Interest Expense                                                  127,000        107,000        255,000        251,000
Income (Loss) Before Income Taxes and                                                                                 
 Extraordinary Expenses                                          (63,000)      (107,000)       (42,000)      (110,000)
Income Taxes                                                            -              -              -              -
Income (Loss) Before Extraordinary Loss                          (63,000)      (107,000)       (42,000)      (110,000)
Extraordinary Loss Related to Refinancing                         166,000              -        166,000              -
Net Income (Loss)                                              ($229,000)     ($107,000)     ($208,000)     ($110,000)
                                                                                                                      
Weighted Average Shares of Common Stock                         2,114,000      2,114,000      2,114,000      2,114,000
                                                                                                                      
Net Income (Loss) per Share Before Extraordinary Loss             ($0.03)        ($0.05)        ($0.02)        ($0.05)
Net Income (Loss) Per Share                                       ($0.11)        ($0.05)        ($0.10)        ($0.05)

See Notes to Financial Statements
</TABLE>


Part I--Financial Information
[CAPTION]
<TABLE>

                           CUCOS INC.
                    STATEMENTS OF CASH FLOWS
                            UNAUDITED


                                                               28 Weeks        28 Weeks
                                                                 Ended           Ended
                                                             Jan 11, 1998    Jan 12, 1997
                                                                                       
<S>                                                          <C>              <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                       $574,000       $505,000
                                                                                       
INVESTING ACTIVITIES                                                                   
 Purchases of Property and Equipment                           (645,000)      (317,000)
 Change in Deferred Costs                                      (417,000)       (63,000)
                                                                                       
NET CASH USED IN INVESTING ACTIVITIES                        (1,062,000)      (380,000)
                                                                                       
FINANCING ACTIVITIES                                                                   
 Proceeds from Borrowings                                      4,209,000        148,000
 Principal Payments on Borrowings                            (3,624,000)      (504,000)
                                                                                       
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES              585,000      (356,000)
                                                                                       
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                  97,000      (231,000)
                                                                                       
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                 476,000        781,000
                                                                                       
CASH AND CASH EQUIVALENTS AT END OF PERIOD                      $573,000       $550,000
                                                                                       
</TABLE>
                                
See Notes to Financial Statements


CUCOS INC.

NOTES TO FINANCIAL STATEMENTS  (UNAUDITED)

1.   The Company:  Cucos Inc. (the "Company") owns and franchises
     Mexican restaurants under the name "Cucos".  At January  11,
     1998,  sixteen Company-owned restaurants and five franchised
     restaurants were in operation.  At the end of the Comparable
     Quarter, there were fifteen company-owned and six franchised
     restaurants in operation.

2.   Fiscal  Year:   The  Company uses  a  52/53  week  year  for
     financial reporting purposes with the Company's fiscal  year
     ending  on  the  Sunday closest to June  30  of  each  year.
     Fiscal 1997 and fiscal 1998 are both 52 week years.

3.   In  1997,  the  Financial Accounting Standards Board  issued
     Statement  of  Financial  Accounting  Standards   No.   128,
     Earnings  per Share.  Statement 128 replaced the  previously
     reported  primary and fully diluted earnings per share  with
     basic  and  diluted  earnings  per  share.   Unlike  primary
     earnings  per  share, basic earnings per share excludes  any
     dilutive  effects  of  options,  warrants,  and  convertible
     securities.  Diluted earnings per share is very  similar  to
     the  previously reported fully diluted earnings  per  share.
     Common  stock  equivalents (stock  options  and  convertible
     debentures) were antidilutive for the 12 week periods  ended
     January  12, 1998 and January 11, 1997, and for the 28  week
     periods  ended January 12, 1998 and January 11,  1997.   All
     earnings  per  share  amounts  for  all  periods  have  been
     presented, and where necessary, restated to conform  to  the
     Statement 128 requirements.

4.   Per  share amounts are based on the weighted average  number
     of   shares  of  common  stock  and  dilutive  common  stock
     equivalents  outstanding.   Common  stock  equivalents  were
     antidilutive for the 28 week period ended January 11, 1998.

5.   Certain  reclassifications  of previously  reported  amounts
     have  been made to conform to current classifications  which
     relate  primarily to the allocation of convertible debenture
     proceeds and the related imputed interest expense.

6.   On  February  17, 1998, the Board of Directors  amended  the
     agreement  related  to the Zero-Coupon  Convertible  Secured
     Notes  to  permit  the  holders to convert  the  Zero-Coupon
     Convertible Secured Notes to Common Stock of Cucos Inc.  two
     years  after the date of issue rather than five  years.   On
     February  19,  1998, the holders converted  the  Zero-Coupon
     Convertible Secured Notes into common stock.  As  a  result,
     stockholders equity increased by $421,000.


              ITEM 2.  MANAGEMENT'S DISCUSSION AND
    ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION


RESULTS OF OPERATIONS

Sales  of  Food and Beverages for the 12 weeks ended January  11,
1998  (the  "Current Quarter") increased 2.2% to $4,840,000  from
$4,737,000.   Sales of Food and Beverages for the 28 weeks  ended
January  11,  1998  (the "Current First Half") declined  0.4%  to
$11,345,000  from  $11,386,000.   The  increase  in  the  Current
Quarter  resulted from additional revenues related to  opening  a
new restaurant in Meridian in October, 1997, which were offset by
3.8% decline in sales revenues in the existing restaurants.   The
decline  in  Current  First Half was the  result  of  an  overall
decline in existing restaurant revenues.  The existing restaurant
revenues  decline is primarily the result of a  4.5%  decline  in
average guest counts.

Restaurant expenses in the Current Quarter and the Current  First
Half   increased  by  4.4%  and  0.9%  respectively.   Restaurant
Expenses  in existing restaurants in the Current Quarter declined
3.6%.   However, this decline was more than offset by  restaurant
expenses  associated  with  the  Meridian  restaurant.    Similar
results were experienced in the Current First Half.

As  a  result  of  the  above  factors,  Income  from  Restaurant
Operations  declined  to  $507,000 in the  Current  Quarter  from
$588,000 in the Comparable Quarter and $1,247,000 for the Current
First Half from $1,376,000 for the Comparable First Half.

Net  Royalties  and Franchise Revenues increased  $8,000  in  the
Current Quarter compared to the Comparable Quarter and $15,000 in
the  Current  First Half compared to the Comparable  First  Half.
This  increase  is the result of higher sales at a  newly  opened
franchise  restaurant in the Current Quarter  and  Current  First
Half compared to the Comparable periods.

Operation  Expenses declined to $176,000 in the  Current  Quarter
from  $275,000 in the Comparable Quarter and to $472,000  in  the
Current  First Half from $608,000 in the Comparable  First  Half.
The  decline  was primarily attributable to a decline  in  losses
related  to  subleases  of  $38,000 in the  Current  Quarter  and
$97,000 in the Current First Half.

Corporate  Expenses  declined 10.0% in  the  Current  Quarter  to
$332,000  and  6.3% in the Current First Half to $731,000.   This
decline  was attributable to additional cost controls  that  were
implemented by the Company.

As  a  result of these factors Operating Income increased $64,000
in  the  Current Quarter compared to the Comparable  Quarter  and
$72,000  in  the  Current First half compared to  the  Comparable
First Half.

Interest  expense  increased  $20,000  in  the  Current   Quarter
compared  to  the Comparable Quarter and $4,000  in  the  Current
First Half compared to Comparable First Half.  This increase  was
attributable to increased borrowings and a slight increase in the
average borrowing rate.

On  October  26,  1997, the Company entered  into  a  new  credit
facility  with  a commercial lending institution.  In  connection
with  this refinancing, the Company incurred prepayment penalties
of  $166,000  which have been reported as an extraordinary  loss.
(See Liquidity and Capital Resources.)

The  Loss  Before Extraordinary Loss was $63,000 in  the  Current
Quarter  compared to $107,000 in the Comparable Quarter  and  was
$42,000  in  the Current First Half compared to $110,000  in  the
Comparable  First  Half.   The  Net Loss  increased  $122,000  to
$229,000 in the Current Quarter and increased $98,000 to $208,000
in   the   Current  First  Half.   This  increase  was  primarily
attributable  to  the  loss  incurred  related  to   the   recent
refinancing.

LIQUIDITY AND CAPITAL RESOURCES

Cash  and  Cash Equivalents increased to $573,000 in the  Current
Quarter  compared  to  $550,000 in the Comparable  Quarter.   The
Current  ratio is .62 at the end of the Current Quarter  compared
to  .52  at  the  end of the Comparable Quarter.  Deferred  costs
increased  $293,000 in the Current Quarter to $499,000 which  was
attributable  to  an  increase  in preopening  costs  of  $22,000
related to the Meridian restaurant and costs of $262,000 incurred
related to the refinancing.

Long-term  debt  and short-term debt payable to  banks  increased
$341,000  in  the  Current  Quarter compared  to  the  Comparable
Quarter.   This  increase was primarily related to the  financing
related to the Meridian restaurant.

On  November  26,  1997, the Company entered into  a  new  credit
facility  of  $3,590,000 with a commercial  lending  institution.
This  new  credit facility consists of a term loan to be  repaid,
primarily,  in monthly payments over 10 years and is  secured  by
the restaurant operating properties.  The proceeds from this term
loan  has  been used to repay substantially all of  the  existing
long-term debt and short-term debt payable to banks.  The amounts
included in the balance sheet of October 19, 1997, for short-term
debt  payable  to banks and long-term debt reflect the  repayment
terms of the new term loan.  In connection with this refinancing,
the  Company incurred a charge to earnings in the Second  Quarter
of  $166,000  and  is related to prepayment penalties  associated
with the existing debt.

On  February  17,  1998,  the  Board  of  Directors  amended  the
agreement related to the Zero-Coupon Convertible Secured Notes to
permit the holders to convert the Zero-Coupon Convertible Secured
Notes  to Common Stock of Cucos Inc. two years after the date  of
issue  rather than five years.  On February 19, 1998, the holders
converted  the Zero-Coupon Convertible Secured Notes into  common
stock.  As a result, stockholders equity increased by $421,000.

FORWARD-LOOKING STATEMENTS

Forward-looking statements regarding management's  present  plans
or  expectations for new unit openings, remodels,  other  capital
expenditures, the financing thereof, and disposition of  impaired
units   involve  risks  and  uncertainties  relative  to   return
expectations  and related allocation of resources,  and  changing
economic or competitive conditions, as well as the negotiation of
agreements  with third parties, which could cause actual  results
to   differ  from  present  plans  or  expectations,   and   such
differences   could  be  material.   Similarly,   forward-looking
statements   regarding  management's  present  expectations   for
operating  results  involve  risk and uncertainties  relative  to
these  and  other factors, such as advertising effectiveness  and
the  ability  to achieve cost reductions, which also would  cause
actual  results  to differ from present plans.  Such  differences
could  be  material.  Management does not expect to  update  such
forward-looking statements continually as conditions change,  and
readers should consider that such statements speak only as to the
date hereof.


Part II-Other Information


ITEM 1.   LEGAL PROCEEDINGS.
          None, except as previously reported.

ITEM 2.   CHANGES IN SECURITIES.
          None.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.
          None.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

          The Annual Meeting of Shareholders was held on December
          11, 1997.  The following matters were voted on and
          received the specified number of votes for, against and
          abstaining:

          1.   Election of Directors:

          Name of Nominees            Votes for     Votes Withheld

          Frank J. Ferrara            1,528,752         18,940
          Thomas J. Grace             1,528,752         18,940
          Elie V. Khoury              1,528,752         18,940
          David M. Liuzza             1,528,752         18,940
          Vincent J. Liuzza, Jr.      1,528,752         18,940
          Sidney C. Pulitzer          1,528,752         18,940
          Miguel Uria                 1,528,752         18,940

          2.   Appointment of independent public accountants,
          Ernst & Young, LLP, for the year 1998:  1,545,932 votes
          for; 710 votes against; and 1,050 votes abstaining.

ITEM 5.   OTHER INFORMATION.

          On February 17, 1998, the Board of Directors amended
          the agreement related to the convertible debentures to
          permit the debenture holders to convert the debenture
          to common shares two years after the date of issue
          rather than five years.  On February 19, 1998, the
          debenture holders converted the debentures into common
          stock.  As a result, stockholders equity increased by
          $421,000.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.

          a.   Exhibits.
               27 - Financial Data Schedule
               4-L - Amendment to Note Purchase Agreement

          b.   Reports on Form 8-K.
               None.

                                
                        INDEX TO EXHIBITS
                                
                                
          The following exhibits are filed with this Quarterly
Report or is incorporated herein by reference:

Exhibit Number           Title
                         
     27                  Financial Data Schedule
     4-L                 Amendment to Note Purchase Agreement




                           CUCOS INC.


                            SIGNATURE


          Pursuant to the requirements of the Securities Exchange
Act  of  1934, the Registrant has duly caused this report  to  be
signed   on   its  behalf  by  the  undersigned  thereunto   duly
authorized.


                              CUCOS INC.
                              (Registrant)


                              Vincent J. Liuzza, Jr.


Date:  February 20, 1998   By:s/s
                              Vincent J. Liuzza, Jr.
                              Chairman, Chief Executive Officer,
                              Chief Financial Officer