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 October 19, 1997

                               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 December 1,
1997.

Transitional Small Business Disclosure Format (check one):

Yes [   ] No [ X ]


Part I--Financial Information
ITEM I.  FINANCIAL STATEMENTS


                           CUCOS INC.
                         BALANCE SHEETS
                                                                 Oct. 19, 1997
                                                                     UNAUDITED
Assets                                                                        
Current Assets                                                                
     Cash and Cash Equivalents                                        $577,000
     Receivables:                                                             
       Trade                                                           442,000
       Due from Affiliates                                             174,000
       Less Allowance for Doubtful Accounts                            138,000
                                                                       478,000
                                                                              
     Inventories                                                       255,000
     Prepaid Expenses, Deferred Taxes and Other Current Assets         593,000
       TOTAL CURRENT ASSETS                                          1,903,000
                                                                              
Deferred Taxes and Noncurrent Assets                                   305,000
                                                                              
Property, Equipment and Other                                                 
     Land                                                              327,000
     Property and Equipment                                          3,671,000
     Building and Leasehold Improvements                             5,430,000
     Reacquired Franchise Rights                                       529,000
                                                                     9,957,000
     Less Accumulated Depreciation and Amortization                  4,178,000
                                                                     5,779,000
                                                                              
Investment in LaMexiCo, LLC                                            245,000
Assets Held for Resale                                                  77,000
Deferred Costs Less Accumulated Amortization                           233,000
     TOTAL ASSETS                                                   $8,542,000
                                                                              
Liabilities and Shareholders' Equity                                          
Current Liabilities                                                           
     Short-Term Debt Payable to Banks                               $        -
     Trade Accounts Payable                                          1,823,000
     Accrued Expenses and Other                                        483,000
     Accrued Payroll                                                   219,000
     Current Portion of Long-Term Debt                                 413,000
       TOTAL CURRENT LIABILITIES                                     2,938,000
                                                                              
Long-Term Debt, Less Current Portion                                 2,975,000
Convertible Debentures - Non-Interest Bearing                          414,000
Deferred Revenue and Other                                             246,000
                                                                              
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)                                   (3,005,000)
       TOTAL SHAREHOLDERS' EQUITY                                    1,969,000
Total Liabilities and Equity                                        $8,542,000
                                                                              
See Notes to Financial Statements


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

                                                              16 Weeks       16 Weeks
                                                                Ended          Ended
                                                            Oct. 19, 1997  Oct. 20, 1996
Restaurant Operations                                                                   
<S>                                                           <C>            <C>
 Sales of Food and Beverages                                   $6,506,000     $6,649,000
 Restaurant Expenses:                                                                   
   Cost of Sales                                                1,740,000      1,797,000
   Restaurant Labor and Benefits                                2,142,000      2,123,000
   Other Operating Expenses                                     1,208,000      1,226,000
   Occupancy Costs                                                675,000        676,000
   Preopening Costs                                                     -         39,000
     Total Restaurant Expenses                                  5,765,000      5,861,000
Income from Restaurant Operations                                 741,000        788,000
                                                                                        
Royalties and Franchise Revenues, Net of Expenses                                       
   of $6,997 and $8,872                                            34,000         28,000
Commissary and Other Income                                        70,000         69,000
                                                                  845,000        885,000
                                                                                        
Operations Expenses                                               296,000        333,000
Corporate Expenses                                                400,000        411,000
Operating Income                                                  149,000        141,000
                                                                                        
Interest Expense                                                  128,000        144,000
Income (Loss) Before Income Taxes                                  21,000        (3,000)
Income Taxes                                                            -              -
Net Income (Loss)                                                 $21,000       ($3,000)
                                                                                        
Weighted Average Shares of Common Shares and Common                                     
 Share Equivalents Outstanding                                  2,654,000      2,114,000
                                                                                        
Net Income (Loss) Per Share                                         $0.01          $0.00

See Notes to Financial Statements
</TABLE>

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


                                                          16 Weeks         16 Weeks
                                                           Ended            Ended
                                                       Oct. 19, 1997    Oct. 20, 1996
                                                                                      
<S>                                                         <C>              <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                    $551,000         $220,000
                                                                                      
INVESTING ACTIVITIES                                                                  
 Purchases of Property and Equipment                         (361,000)        (248,000)
 Change in Deferred Costs                                    (123,000)         (26,000)
                                                                                      
NET CASH USED IN INVESTING ACTIVITIES                        (484,000)        (274,000)
                                                                                      
FINANCING ACTIVITIES                                                                  
 Proceeds from Borrowings                                     344,000           73,000
 Principal Payments on Borrowings                            (310,000)        (299,000)
                                                                                      
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES            34,000         (226,000)
                                                                                      
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS              101,000         (280,000)
                                                                                      
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD              476,000          781,000
                                                                                      
CASH AND CASH EQUIVALENTS AT END OF PERIOD                   $577,000         $501,000
                                                                                      
</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 October  19,
     1997, sixteen Company-owned restaurants and seven franchised
     restaurants  were in operation, one of which closed  October
     31,  1997.  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  1998 will end on June 28, 1998, and will consist  of
     one  sixteen-week quarter ending October 19, 1997, and three
     twelve-week quarters ending January 11, 1998, and  April  5,
     1998,  and June 28, 1998.  Fiscal 1997 and fiscal  1998  are
     both 52 week years.

3.   The  accompanying unaudited financial statements  have  been
     prepared in accordance with the rules and regulations of the
     Securities and Exchange Commission.  Certain information and
     footnote  disclosures  normally included  in  the  financial
     statements  have  been omitted pursuant to  such  rules  and
     regulations.    It   is  suggested  that   these   financial
     statements be read in conjunction with the Company's  Annual
     Report  for  the fiscal year ended June 29,  1997.   In  the
     opinion  of  management, these financial statements  contain
     all normal recurring adjustments necessary to fairly present
     the  financial  results for the sixteen weeks ended  October
     19,  1997.  Operating results for the period shown  are  not
     necessarily indicative of the operating results expected for
     the full fiscal year ending June 28, 1998.

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 16 week period ended October 20, 1996.

4.   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.


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


RESULTS OF OPERATIONS

Net  income  for the sixteen weeks ended October  19,  1997  (the
"Current Quarter") increased to $21,000 compared to a net loss of
$3,000  in  the  sixteen  weeks  ended  October  20,  1996   (the
"Comparable Quarter").  This was the result of a $48,000  decline
in  operations  and corporate expenses and a $16,000  decline  in
interest  expense which were partially offset  by  a  decline  in
income from restaurant operations of $47,000.

Sales  of food and beverages declined for the Current Quarter  to
$6,506,000 from $6,649,000 for the Comparable Quarter (a decrease
of  2.2%).   This  was the result of a decline in average  weekly
guest  counts  in  certain markets.  Comparable restaurant  sales
declined 2.8%.

Restaurant expenses declined to $5,765,000 in the Current Quarter
compared to $5,861,000 in the Comparable Quarter.  This  was  the
result of an overall decline in restaurant expenses primarily due
to lower sales volumes and a reduction in advertising costs which
were  partially offset by an increase in restaurant  labor  costs
resulting from the increase in the minimum wage.  A brief summary
of the component restaurant expenses are:

                                           Current     Comparable
     Description                           Quarter       Quarter
                                              
     Cost of Sales                          26.74%        27.04%
     Restaurant Labor and Benefits          32.93         31.92
     Other Operating Expenses               18.56         18.44
     Occupancy Costs                        10.38         10.17
     Preopening Costs                           -           .58
     Total Restaurant Expenses              88.61%        88.15%

Royalties  and  franchise revenues increased to  $34,000  in  the
Current  Quarter  compared to $28,000 in the Comparable  Quarter.
This  was  due  primarily  to  having  an  additional  franchised
restaurant  opened  in  the  Current  Quarter  compared  to   the
Comparable Quarter.

Operations  and  corporate  expenses  declined  slightly  in  the
Current Quarter compared to the Comparable Quarter.  This is  the
result of tight cost controls maintained in the Company.

LIQUIDITY AND CAPITAL RESOURCES

Cash  and  cash equivalents increased to $577,000 in the  Current
Quarter  compared  to  $501,000 in the Comparable  Quarter.   The
current  ratio is .65 at the end of the Current Quarter  compared
to  .53 at the end of the Comparable Quarter.  During the Current
Quarter  the Company has funded the capital and preopening  costs
of  $400,000  to open a new restaurant in Meridian,  Mississippi,
through  operations and additional borrowings.   This  restaurant
opened October 15, 1997.

Long  term  debt  decreased by $381,000 in  the  Current  Quarter
compared  to the Comparable Quarter.  This was primarily  due  to
the  payments  on  the debt being partially offset  by  increased
borrowings   to  fund  purchases  of  restaurant  equipment   and
leasehold improvements.

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 will be 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 will incur a charge to earnings in the Second Quarter
which is not expected to exceed $200,000 and is primarily related
to prepayment penalties associated with the existing debt.

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.

          None

ITEM 5.   OTHER INFORMATION.

          None

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

          a.   Exhibits.
               4-K - Pledge and Security Agreement,
                    dated October 7, 1997, between
                    Cucos Inc. and AMRESCO Commercial Lending
                    Corporation (with subordination agreement and
                    guaranty)

               27 - Financial Data Schedule

          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
                         
     4-K*                Pledge and Security Agreement, dated
                              October 7, 1997, between Cucos
                              Inc. and AMRESCO Commercial
                              Lending Corporation (with
                              subordination agreement and
                              guaranty)
                         
     27                  Financial Data Schedule



* To be filed by amendment.
                           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:  December 3, 1997    By:/s/ Vincent J. Liuzza, Jr.
                              Chairman, Chief Executive Officer,
                              Chief Financial Officer