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 April 5, 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:
2,641,730  shares of common stock, no par value, as  of  May  14,
1998.

Transitional Small Business Disclosure Format (check one):

Yes [   ] No [ X ]

Part I--Financial Information
ITEM I.  FINANCIAL STATEMENTS

                           CUCOS INC.
                         BALANCE SHEETS
                                
                                                                   April 5, 1998
                                                                       Unaudited
Assets                                                                        
Current Assets                                                                
     Cash and Cash Equivalents                                        $690,000
     Receivables:                                                             
       Trade                                                           531,000
       Due from Affiliates                                             186,000
       Less Allowance for Doubtful Accounts                            207,000
                                                                       510,000
                                                                              
     Inventories                                                       250,000
     Prepaid Expenses, Deferred Taxes and Other Current Assets         504,000
       TOTAL CURRENT ASSETS                                          1,954,000
                                                                              
Deferred Taxes and Noncurrent Assets                                   250,000
                                                                                
Property, Equipment and Other                                                 
     Land                                                              327,000
     Property and Equipment                                          4,100,000
     Building and Leasehold Improvements                             5,517,000
     Reacquired Franchise Rights                                       529,000
                                                                    10,473,000
     Less Accumulated Depreciation and Amortization                  4,593,000
                                                                     5,880,000
                                                                              
Investment in LaMexiCo, LLC                                            251,000
Assets Held for Resale                                                 102,000
Deferred Costs Less Accumulated Amortization                           481,000
TOTAL ASSETS                                                        $8,918,000
                                                                                
Liabilities and Shareholders' Equity                                          
Current Liabilities                                                           
     Short-Term Debt Payable to Banks                                  $40,000
     Trade Accounts Payable                                          1,598,000
     Accrued Expenses and Other                                        554,000
     Accrued Payroll                                                   199,000
     Current Portion of Long-Term Debt                                 394,000
       TOTAL CURRENT LIABILITIES                                     2,785,000
                                                                              
Long-Term Debt, Less Current Portion                                 3,972,000
Deferred Revenue and Other                                             160,000
                                                                                
Shareholders' Equity                                                            
     Preferred Stock, No Par Value - 1,000,000 Share                          
       Authorized, None Issued or Outstanding                                -
     Common Stock, No Par Value - 20,000,000 Shares                           
       Authorized, 2,641,730 Shares Issued and Outstanding           5,246,000
     Additional Paid-in Capital                                        152,000
     Retained Earnings (Deficit)                                    (3,397,000)
       TOTAL SHAREHOLDERS' EQUITY                                    2,001,000
TOTAL LIABILITIES AND EQUITY                                        $8,918,000
                                                                                
See Notes to Financial Statements
<TABLE>
Part I--Financial Information

                           CUCOS INC.
                    STATEMENTS OF OPERATIONS
                            UNAUDITED
<CAPTION>
                                                                  12 Weeks        12 Weeks         40 Weeks         40 Weeks
                                                                     Ended           Ended            Ended            Ended
                                                              Apr. 5, 1998    Apr. 6, 1997     Apr. 5, 1998      Apr. 6, 1997
Restaurant Operations    
 <S>                                                          <C>             <C>              <C>                <C>
 Sales of Food and Beverages                                  $4,908,000      $4,993,000       $16,254,000        $16,379,000
 Restaurant Expenses:                                                                                   
   Cost of Sales                                               1,280,000       1,303,000         4,304,000           4,365,000
   Restaurant Labor and Benefits                               1,656,000       1,590,000         5,441,000           5,254,000
   Other Operating Expenses                                      866,000         823,000         2,921,000           2,861,000
   Occupancy Costs                                               561,000         506,000         1,773,000           1,684,000
   Preopening Costs                                               33,000          29,000            55,000              97,000
     Total Restaurant Expenses                                 4,396,000       4,251,000        14,494,000          14,261,000
Income from Restaurant Operations                                512,000         742,000         1,760,000           2,118,000
                                                                                                                              
Royalties and Franchise Revenues, Net of Expenses                                                                             
   of $8,637 and $68,125; $21,532 and $83,928                     23,000           3,000            82,000              48,000
Commissary and Other Income                                       40,000          43,000           149,000             151,000
                                                                 575,000         788,000         1,991,000           2,317,000
                                                                                                                               
Operations Expenses                                              247,000         282,000           718,000             890,000
Corporate Expenses                                               361,000         363,000         1,092,000           1,143,000
Operating Income                                                 (33,000)        143,000           181,000             284,000
                                                                                                                              
Interest Expense                                                 129,000         104,000           385,000             355,000
Income (Loss) Before Income Taxes                               (162,000)         39,000          (204,000)            (71,000)
                                                                                                                              
Income Taxes                                                           -               -                 -                   -
Income (Loss) Before Extraordinary Expense                      (162,000)         39,000          (204,000)            (71,000)
                                                                                                                              
Loan Prepayment Penalties                                              -               -           166,000                   -
Net Income (Loss)                                              $(162,000)        $39,000         $(370,000)           $(71,000)
                                                                                                                              
Average Shares Outstanding                                                                                                    
 Basic                                                         2,400,000       2,114,000         2,199,000           2,114,000
 Diluted                                                       2,400,000       2,642,000         2,199,000           2,114,000
                                                                                                                                
Net Income (Loss) Per Share Before Extraordinary Expense                                                                      
 Basic                                                           ($0.07)           $0.02           ($0.09)             ($0.03)
 Diluted                                                         ($0.07)           $0.01           ($0.09)             ($0.03)
                                                                                                                                  
Net Income (Loss) Per Share                                                                                                   
 Basic                                                           ($0.07)           $0.02           ($0.17)             ($0.03)
 Diluted                                                         ($0.07)           $0.01           ($0.17)             ($0.03)
</TABLE>

See Notes to Financial Statements

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

                                                                     40 Weeks            40 Weeks
                                                                        Ended               Ended
                                                                 Apr. 5, 1998        Apr. 6, 1997
                                                                                                 
<S>                                                               <C>                   <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                            $824,000            $539,000
                                                                                                 
INVESTING ACTIVITIES                                                                             
 Purchases of Property and Equipment                                (878,000)           (393,000)
 Change in Deferred Costs                                           (371,000)              75,000
                                                                                                 
NET CASH USED IN INVESTING ACTIVITIES                             (1,249,000)           (318,000)
                                                                                                 
FINANCING ACTIVITIES                                                                             
 Proceeds from Borrowings                                           4,781,000             324,000
 Principal Payments on Borrowings                                 (4,142,000)           (780,000)
                                                                                                 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                   639,000           (456,000)
                                                                                                 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                      214,000           (235,000)
                                                                                                 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                      476,000             781,000
                                                                                                 
CASH AND CASH EQUIVALENTS AT END OF PERIOD                           $690,000            $546,000
                                                                                                 
</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  April  5,
     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   seven
     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
     April 5, 1998 and April 6, 1997, and for the 40 week periods
     ended  April  5, 1998 and April 6, 1997.  All  earnings  per
     share amounts for all periods presented have been, 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.

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 527,983  shares  of  common
     stock.   As  a  result,  stockholders  equity  increased  by
     $424,670.

              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 April 5,  1998
(the   "Current  Quarter")  decreased  1.7%  to  $4,908,000  from
$4,993,000  for the 12 weeks ended April 6, 1997 (the `Comparable
Quarter").   Sales of Food and Beverages for the 40  weeks  ended
April  5,  1998 (the "Current Three Quarters") declined  0.8%  to
$16,254,000 from $16,379,000 for the 40 weeks ended April 6, 1997
(the  "Comparable Three Quarters").  The decrease in the  Current
Quarter  was  the result of a 5.6% decline in food  and  beverage
sales  in the restaurants open throughout both periods ("existing
restaurants"),  which  was  offset by  food  and  beverage  sales
related to opening a new restaurant in Meridian in October, 1997.
The  decline in the Current Three Quarters was the result  of  an
overall  decline in existing restaurant revenues.   The  existing
restaurant revenues decline is primarily the result of a 7.3% and
5.3% decline in average guest counts for the Current Quarter  and
the  Comparable  Three Quarters, respectively,  compared  to  the
Comparable periods.

Restaurant  expenses  in the Current Quarter  increased  by  3.4%
compared  to  the  Comparable periods.   Restaurant  Expenses  in
restaurants  open throughout both periods declined  3.1%  in  the
Current  Quarter.  However, this decline was more than offset  by
restaurant  expenses associated with the opening of the  Meridian
restaurant.   Similar  results were experienced  in  the  Current
Three   Quarters  compared  to  the  Comparable  Three  Quarters.
Generally,  the components of restaurant expenses  reflected  the
same results.

As  a  result  of  the  above  factors,  Income  from  Restaurant
Operations  declined  to  $512,000 in the  Current  Quarter  from
$742,000 in the Comparable Quarter and $1,760,000 for the Current
Three Quarters from $2,118,000 for the Comparable Three Quarters.

Net  Royalties  and Franchise Revenues increased $20,000  in  the
Current Quarter compared to the Comparable Quarter and $34,000 in
the  Current  Three  Quarters compared to  the  Comparable  Three
Quarters.   This increase is the result of no expenses associated
with opening of franchised restaurants in the Current Quarter and
the Current Three Quarters compared to the Comparable periods.

Operations  Expenses declined to $247,000 in the Current  Quarter
from  $282,000 in the Comparable Quarter and to $718,000  in  the
Current  Three  Quarters from $890,000 in  the  Comparable  Three
Quarters.  The decline was primarily attributable to a decline in
losses  related  to subleases of $34,000 in the  Current  Quarter
compared  to  the Comparable Quarter and $122,000 in the  Current
Three Quarters compared to the Comparable Three Quarters.

Corporate  Expenses  decreased .6%  in  the  Current  Quarter  to
$361,000 compared to the Comparable Quarter, and declined 4.6% in
the   Current  Three  Quarters  to  $1,092,000  compared  to  the
Comparable  Three  Quarters.  This decline  was  attributable  to
additional  cost controls that were implemented by  the  Company,
partially offset by higher insurance cost in the Current Quarter.

As  a result of these factors Operating Income decreased $176,000
in  the  Current Quarter compared to the Comparable  Quarter  and
$103,000 in the Current Three Quarters compared to the Comparable
Three Quarters.

Interest  expense  increased  $25,000  in  the  Current   Quarter
compared  to  the Comparable Quarter and $30,000 in  the  Current
Three  Quarters  compared  to Comparable  Three  Quarters.   This
increase was attributable to increased borrowings.

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 $162,000 in the  Current
Quarter  compared to income of $39,000 in the Comparable  Quarter
and was a $204,000 loss in the Current Three Quarters compared to
a loss of $71,000 in the Comparable Three Quarters.  The Net Loss
increased  $201,000  to  $162,000  in  the  Current  Quarter  and
increased  $299,000  to $370,000 in the Current  Three  Quarters.
This  increase  was primarily attributable to the  loss  incurred
related  to  the  recent  refinancing and other  items  discussed
above.

LIQUIDITY AND CAPITAL RESOURCES

Cash  and  Cash Equivalents increased to $690,000 in the  Current
Quarter  compared  to  $546,000 in the Comparable  Quarter.   The
Current  ratio is .70 at the end of the Current Quarter  compared
to  .53  at  the  end of the Comparable Quarter.  Deferred  costs
increased  $376,000 in the Current Quarter to $481,000 which  was
attributable  to  an  increase in preopening  costs  of  $142,000
related to the Meridian restaurant and costs of $274,000 incurred
related to the refinancing described below.

Long-term  debt  and short-term debt payable to  banks  increased
$494,900  in  the  Current  Quarter compared  to  the  Comparable
Quarter.   This  increase was primarily related to financing  for
the   Meridian  restaurant,  additional  equipment  at   existing
restaurants, and for working capital purposes.

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  527,983
shares  of  common  stock.   As  a  result,  stockholders  equity
increased by $424,670.

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.

          On March 26, 1998, the Board of Directors approved the
          issuance of 10,000 shares of Common Stock of Cucos Inc.
          to Thomas L. McCormick for services rendered to Cucos
          in connection with the new credit facility.

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.
               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
                         
     27                  Financial Data Schedule
                         




                           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:  May 19, 1998        By:
                              Vincent J. Liuzza, Jr.
                              Chairman, Chief Executive Officer,
                              Chief Financial Officer