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 18, 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:
2,651,730 shares of common stock, no par value, as of December 1,
1998.

Transitional Small Business Disclosure Format (check one):

Yes [   ] No [ X ]


Part I--Financial Information
ITEM I.  FINANCIAL STATEMENTS


                           CUCOS INC.
                          BALANCE SHEET

                                                         Oct. 18, 1998
                                                           UNAUDITED
Assets                                                                 
Current Assets                                                         
     Cash and Cash Equivalents                                 $639,000
     Receivables:                                                      
       Trade                                                    665,000
       Due from Affiliates                                      179,000
       Less Allowance for Doubtful Accounts                     271,000
                                                                573,000
                                                                       
     Inventories                                                229,000
     Prepaid Expenses and Other Current Assets                  252,000
       TOTAL CURRENT ASSETS                                   1,693,000
                                                                       
Property, Equipment and Other                                          
     Property and Equipment                                   4,552,000
     Building and Leasehold Improvements                      5,244,000
     Reacquired Franchise Rights                                529,000
                                                             10,325,000
     Less Accumulated Depreciation and Amortization           5,425,000
                                                              4,900,000
                                                                       
Investment in LaMexiCo, LLC                                     237,000
Deferred Costs Less Accumulated Amortization                    349,000
Other Noncurrent Assets                                         249,000
     TOTAL ASSETS                                            $7,428,000
                                                                       
Liabilities and Shareholders' Equity                                   
Current Liabilities                                                    
     Short-Term Debt Payable to Banks                          $100,000
     Trade Accounts Payable                                   1,939,000
     Accrued Expenses and Other                                 466,000
     Accrued Payroll                                            200,000
     Current Portion of Long-Term Debt                          461,000
       TOTAL CURRENT LIABILITIES                              3,166,000
                                                                       
Long-Term Debt, Less Current Portion                          3,323,000
Deferred Revenue and Other                                      242,000
                                                                       
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, 2,651,730 Shares Issued and Outstanding    5,253,000
     Additional Paid-in Capital                                 111,000
     Retained Earnings (Deficit)                             (4,667,000)
       TOTAL SHAREHOLDERS' EQUITY                               697,000
Total Liabilities and Equity                                 $7,428,000
                                                                       
See Notes to Financial Statements


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


                                                         16 Weeks       16 Weeks
                                                           Ended          Ended
                                                       Oct. 18, 1998  Oct. 19, 1997
Restaurant Operations                                                              
<S>                                                   <C>            <C>
 Sales of Food and Beverages                          $6,313,000     $6,506,000
 Restaurant Expenses:                                                          
   Cost of Sales                                       1,792,000      1,740,000
   Restaurant Labor and Benefits                       2,242,000      2,142,000
   Other Operating Expenses                            1,316,000      1,208,000
   Occupancy Costs                                       717,000        675,000
   Preopening Costs                                       44,000              -
     Total Restaurant Expenses                         6,111,000      5,765,000
Income from Restaurant Operations                        202,000        741,000
                                                                               
Royalties and Franchise Revenues, Net of Expenses                              
   of $6,997 and $8,872                                   42,000         34,000
Commissary and Other Income                               38,000         54,000
                                                         282,000        829,000
                                                                               
Operations Expenses                                      267,000        280,000
Corporate Expenses                                       439,000        400,000
Operating Income (Loss)                                 (424,000)       149,000
                                                                               
Interest Expense                                         152,000        128,000
Income (Loss) Before Income Taxes                       (576,000)        21,000
Income Taxes                                                   -              -
Net Income (Loss)                                      $(576,000)       $21,000
                                                                               
Weighted Average Shares of Common Shares and Common                            
 Share Equivalents Outstanding - Basic and Diluted     2,306,000      2,114,000
                                                                               
Net Income (Loss) Per Share - Basic and Diluted          ($0.25)          $0.01
</TABLE>
See Notes to Financial Statements


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


                                                               16 Weeks         16 Weeks
                                                                 Ended            Ended
                                                             Oct. 18, 1998    Oct. 19, 1997
                                                                                            
<S>                                                          <C>              <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                      $86,000         $428,000
                                                                                       
INVESTING ACTIVITIES                                                                   
 Purchases of Property and Equipment                           (71,000)        (361,000)
                                                                                       
NET CASH USED IN INVESTING ACTIVITIES                          (71,000)        (361,000)
                                                                                       
FINANCING ACTIVITIES                                                                   
 Proceeds from Borrowings                                       74,000          344,000
 Principal Payments on Borrowings                             (129,000)        (310,000)
                                                                                       
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES            (55,000)          34,000
                                                                                       
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               (40,000)         101,000
                                                                                            
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD               679,000          476,000
                                                                                       
CASH AND CASH EQUIVALENTS AT END OF PERIOD                    $639,000         $577,000
</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  18,
     1998,  fifteen Company-owned restaurants and five franchised
     restaurants were in operation.  At the end of the Comparable
     Quarter,   there  were  sixteen  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  1999 will end on June 27, 1999, and will consist  of
     one  sixteen-week quarter ending October 18, 1998, and three
     twelve-week quarters ending January 10, 1999, and  April  4,
     1999,  and June 27, 1999.  Fiscal 1998 and fiscal  1999  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 28,  1998.   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
     18,  1998.  Operating results for the period shown  are  not
     necessarily indicative of the operating results expected for
     the full fiscal year ending June 27, 1999.

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.

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


RESULTS OF OPERATIONS

Net  loss  for  the  sixteen weeks ended October  18,  1998  (the
"Current  Quarter")  was $576,000 compared to  a  net  income  of
$21,000  in  the  sixteen  weeks  ended  October  19,  1997  (the
"Comparable  Quarter").  This was primarily  the  result  of  the
factors discussed below.

Sales of food and beverages declined to $6,313,000 in the Current
Quarter from $6,506,000 in the Comparable Quarter or a decline of
$193,000  (3.0%).  This decline was primarily due to  having  one
additional  restaurant (Pensacola) in 1998.  A price increase  of
3%  was instituted during the Current Quarter and is expected  to
increase sales revenue with minimal loss in guest counts.

Despite  the  decline in sales, restaurant expenses increased  to
$6,111,000  in  the  Current  Quarter  from  $5,765,000  in   the
Comparable   Quarter,  an  increase  of  $346,000  (6.0%).    Had
restaurant  expenses  been  maintained  at  the  same  levels  in
relation  to  sales,  as have generally been experienced  in  the
past,  restaurant  expenses would have been  $515,000  less  than
actually incurred.  These additional costs are primarily  related
to  programs instituted during the Current Quarter to improve the
guest  experience  at  the  restaurants.  These  programs,  which
included  improved plate presentations and service and  increases
in management staff, advertising and promotional activities, were
substantially  implemented by the end  of  the  Current  Quarter.
There can be no assurances that these new programs will result in
increased  guest counts, but management expects the  loss  to  be
lower  in  the  Second  Quarter and the  Company  may  return  to
profitability after that.  In addition, the Current  Quarter  was
adversely affected by the increase in prices of dairy and produce
products,  primarily  cheese and tomatoes, and  closures  due  to
Hurricane   Georges.   A  summary  of  the  component  restaurant
expenses are:

                                           Current     Comparable
     Description                           Quarter       Quarter
                                                
     Cost of Sales                          28.38%       26.74%
     Restaurant Labor and Benefits          35.51        32.93
     Other Operating Expenses               20.85        18.56
     Occupancy Costs                        11.36        10.38
     Preopening Costs                         .70          . -
     Total Restaurant Expenses              96.80%       88.61%

Operations  and corporate expenses increased $27,000,  which  was
primarily related to increases in insurance and salaries.

Interest  expense increased $24,000 as the result of an increased
level of borrowings.

LIQUIDITY AND CAPITAL RESOURCES

During  the Current Quarter, despite a net loss of $576,000,  the
Company's  operating activities provided cash  flow  of  $86,000.
Management has implemented certain actions to improve  the  guest
experience at the restaurants, which are described above.  In  an
effort  to  improve operating results and cash flows,  management
believes  it  will continue to generate cash flow from  operating
activities  sufficient to allow it to operate  and  to  meet  its
obligations.   Management  also  believes  there  are   alternate
sources of financing available to allow the Company to meet short-
term  financing needs which may arise.  However, there can be  no
assurance  that  management's plans will be  successful  or  that
alternate sources will be available.

Net  cash  provided by operations together with $74,000 of  funds
from  borrowings and cash at the beginning of the Current Quarter
were  sufficient  to fund $71,000 of purchases  of  property  and
equipment and make $129,000 of principal payments on borrowings.

Working  capital needs have been and will continue to be financed
from  operations  and short-term borrowings.   Although  none  is
planned,  restaurant expansion and remodeling has been  and  will
continue to be funded from long term debt, lessor allowances  and
leases.   Because  of the timing of securing long-term  debt  and
leases,  restaurant expansion and remodeling may  be  temporarily
funded from operations.

The  Company's line of credit provides $100,000 which may be used
for  working  capital needs as well as restaurant  expansion  and
remodeling.  The line of credit bears interest at 2.0% per  annum
above  the  New  York Prime Rate and had $100,000 outstanding  at
October  18,  1998. 

IMPACT OF YEAR 2000

The  Company's position on the Year 2000 exposures are  described
in  the  Company's annual report for fiscal year ended  June  28,
1998.   The Company continues to address this issue and does  not
expect  any significant problems or exposures arising  from  this
issue.   There have been no significant changes in this  area  in
the Current Quarter.

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 November
          19, 1998.  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          2,113,492        175,320
          Thomas J. Grace           2,113,492        175,320
          David M. Liuzza           2,113,492        175,320
          Vincent J. Liuzza, Jr.    2,113,492        175,320
          Sidney C. Pulitzer        2,113,492        175,320
          Miguel Uria               2,113,492        175,320
          V. M. Wheeler III         2,113,492        175,320

          2.   Appointment of independent public accountants,
          Ernst & Young, LLP, for the year 1999:  2,283,387 votes
          for; 3,550 votes against; and 1,875 votes abstaining.

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:  December 1, 1998    By:
                              Vincent J. Liuzza, Jr.
                              Chairman, Chief Executive Officer,
                              Chief Financial Officer