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 12, 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 January 31,
1997.

Transitional Small Business Disclosure Format (check one):

Yes [   ] No [ X ]


Part I--Financial Information
ITEM I.  FINANCIAL STATEMENTS
<TABLE>
                           CUCOS INC.
                         BALANCE SHEETS
<CAPTION>
                                
                                                           Jan. 12, 1997  June 30, 1996
                                                                UNAUDITED               
Assets                                                                                  
Current Assets                                                                          
<S>                                                            <C>            <C>
     Cash and Cash Equivalents                                   $549,508       $781,090
     Receivables:                                                                       
       Trade                                                      351,064        326,147
       Due from affiliates                                        303,791        306,793
       Notes receivable from franchisees                           15,536         15,536
       Less allowance for doubtful accounts                       121,368         99,118
                                                                  549,023        549,358
     Inventories                                                  257,843        244,589
     Prepaids, deferred taxes and other current assets            440,347        348,834
       TOTAL CURRENT ASSETS                                     1,796,721      1,923,871
Deferred Taxes and Noncurrent Receivables                         346,629        322,508
Property, Equipment and Other                                                           
     Land                                                         327,000        327,000
     Property and equipment                                     5,017,098      4,896,737
     Building and leasehold improvements                        5,380,326      5,183,624
     Reacquired franchise rights                                  528,896        528,896
                                                               11,253,320     10,936,257
     Less accumulated depreciation and amortization             5,078,482      4,561,795
                                                                6,174,838      6,374,462
Preopening cost less accumulated amortization                      28,955         96,519
Investment in LaMexiCo, L.L.C.                                    242,207        245,178
Deferred Cost, less accumulated amortization                      143,023         82,100
                                                               $8,732,373     $9,044,638
Liabilities and Shareholders' Equity                                                    
Current Liabilities                                                                     
     Short-term debt payable to banks                            $150,000        $93,000
     Trade accounts payable                                     1,587,741      1,477,670
     Accrued expenses and other                                   595,660        544,119
     Accrued payroll                                              190,842        200,606
     Current portion of long-term debt                            937,914        968,396
       TOTAL CURRENT LIABILITIES                                3,462,157      3,283,791
Long-Term Debt, less current portion                            2,534,150      2,934,051
Convertible Debenture - Non-Interest Bearing                      500,000        500,000
Deferred Revenue                                                   64,333         62,500
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 at January 12, 1997, and June 30, 1996       4,745,584      4,745,584
     Additional paid-in capital                                    67,849         67,849
     Retained earnings (deficit)                               (2,641,700)    (2,549,137)
       TOTAL SHAREHOLDERS' EQUITY                               2,171,733      2,264,296
                                                               $8,732,373     $9,044,638

See Notes to Financial Statements.
</TABLE>

Part I--Financial Information
<TABLE>

                           CUCOS INC.
                     STATEMENT OF OPERATIONS
                            UNAUDITED
<CAPTION>

                                           12 Weeks         12 Weeks         28 Weeks         28 Weeks
                                             Ended            Ended            Ended            Ended
                                         Jan. 12, 1997    Jan. 14, 1996    Jan. 12, 1997    Jan. 14, 1996
Revenues:                                                                                                 
<S>                                        <C>              <C>             <C>              <C>
  Sales of Food and Beverages                $4,617,337       $4,623,581      $11,099,759      $10,834,073
  Franchise Fees and Royalties                   23,835           43,845           60,196          100,867
  Commissary, Rent & Other Income               131,529           72,586          278,331          174,088
  Total Revenues                              4,772,701        4,740,012       11,438,286       11,109,028
                                                                                                          
Costs and Expenses:                                                                                       
  Cost of Sales                               1,264,016        1,256,818        3,061,383        2,901,763
  Restaurant Labor and Benefits               1,542,052        1,547,752        3,664,690        3,581,018
  Other Operating Expenses                      691,940          727,474        1,751,681        1,793,768
  Occupancy Costs                               502,539          476,520        1,178,605        1,119,521
  Preopening Cost Amortization                   28,956                0           67,564                0
  Total Restaurant Operating Expenses         4,029,503        4,008,564        9,723,923        9,396,070
                                                                                                          
  Operations and Franchise Expenses             374,111          325,795          793,870          718,328
  Corporate Expenses                            368,887          305,835          779,714          766,075
  Interest Expense                               98,873           94,145          233,342          219,491
                                                                                                          
Income Before Income Taxes                     (98,673)            5,673         (92,563)            9,064
                                                                                                          
Income Tax                                                                                                
                                                      -                -                -                -
                                                                                                          
NET INCOME (LOSS)                             $(98,673)           $5,673        $(92,563)           $9,064
                                                                                                          
Weighted Average Shares and Common                                                                        
Share Equivalents Outstanding                 2,641,730        2,641,730        2,641,730        2,641,730
                                                                                                          
INCOME PER SHARE:                                                                                         
  Net Income (Loss) Per Share                   ($0.04)             $.00          ($0.04)             $.00


See Notes to Financial Statements.
</TABLE>

Part I--Financial Information

<TABLE>
                           CUCOS INC.
                    STATEMENTS OF CASH FLOWS
                            UNAUDITED

<CAPTION>
                                                           28 Weeks         28 Weeks
                                                            Ended            Ended
                                                        Jan. 12, 1997    Jan. 14, 1996
                                                                                       
<S>                                                         <C>              <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                     $518,874         $496,594
                                                                                       
INVESTING ACTIVITIES                                                                   
 Purchases of Property and Equipment                         (317,063)        (501,199)
 Investment in LaMexiCo, L.L.C.                                  2,971         ( 2,664)
 Net (Additions) Reductions to Deferred Costs and Other       (62,982)         (64,357)
                                                                                       
NET CASH USED IN INVESTING ACTIVITIES                        (377,074)        (568,220)
                                                                                       
FINANCING ACTIVITIES                                                                   
 Proceeds from Borrowings                                      850,673          904,887
 Principal Payments on Borrowings                          (1,224,055)        (624,002)
                                                                                       
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES          (373,382)          280,885
                                                                                       
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS             (231,582)          209,259
                                                                                       
CASH AND CASH EQUIVALENTS AT BEGINNING                                                 
 OF PERIOD                                                     781,090          566,740
                                                                                       
CASH AND CASH EQUIVALENTS AT END OF PERIOD                    $549,508         $775,999


See Notes to Financial Statements.
</TABLE>

                           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  12,
     1997,  fifteen company-owned restaurants and six  franchised
     restaurants were in operation.  At the end of the Comparable
     Quarter,   there   were  fifteen  company-owned   and   four
     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 will end on June 29, 1997, and will consist  of
     one  sixteen-week quarter ending October 20, 1996, and three
     twelve-week quarters ending January 12, 1997, and  April  6,
     1997,  and June 29, 1997.  Fiscal 1996 and fiscal  1997  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 30,  1996.   In
     the   opinion  of  management,  these  financial  statements
     contain all normal recurring adjustments necessary to fairly
     present  the  financial results for the  twenty-eight  weeks
     ended  January 12, 1997.  Operating results for  the  period
     shown  are  not  necessarily  indicative  of  the  operating
     results  expected for the full fiscal year ending  June  29,
     1997.

4.   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

Revenues  increased for both the 12 weeks ended January 12,  1997
(the  "Current Quarter"), and the 28 weeks ended January 12, 1997
(the   "Current  First  Half").   Revenues  increased   .69%   to
$4,772,701,  from $4,740,012 for the twelve weeks  ended  January
14,  1996  (the "Comparable Quarter").  Revenues for the  Current
First Half increased 3.0% to $11,438,286 from $11,109,028 for the
28  weeks  ended January 14, 1996 (the "Comparable First  Half").
Food  and  Beverage Revenues on a comparable sales per restaurant
basis decreased 1.3% in the Current Quarter and increased .73% in
the Current First Half.

The  Company had a net loss of $98,673, ($.04 per share)  in  the
Current  Quarter  compared  to net income  of  $5,763  ($.00  per
share),  in the Comparable Quarter.  The net loss for the Current
First  Half was $92,563, ($.04 per share), compared to net income
of $9,064 ($.00 per share) in the Comparable First Half.

Sales  of  Food  and Beverages for the Current Quarter  decreased
 .14% to $4,617,337 from $4,623,581 during the Comparable Quarter.
The  decline  in  sales  for the Current Quarter  was  due  to  a
temporary  reduced level of advertising and increased competition
in  certain locations.  Restaurant level profits declined $27,183
in  the  Current Quarter, down 4.42% from the Comparable Quarter,
primarily  due  to higher depreciation and amortization  expenses
and  the inclusion of Preopening Cost Amortization in the Current
Quarter.

Sales  of Food and Beverages for the Current First Half increased
$265,686  (2.45%)  over  the Comparable First  Half.   The  sales
increase  reflects  a  slight increase in  comparable  sales  per
restaurant.  Restaurant level profits for the Current First  Half
decreased  4.32%  to  $1,375,836 compared to  $1,438,003  in  the
Comparable   First   Half  due  to  increased  depreciation   and
amortization  expenses  and  the  inclusion  of  Preopening  cost
amortization in the Current First Half.

Franchise  Fees and Royalties declined to $23,835 in the  Current
Quarter from $43,845 in the Comparable Quarter.  The decrease was
primarily   due  to  poorer  performance  at  several   franchise
restaurants  and the Comparable Quarter included Development  Fee
income  which did not recur in the Current Quarter.   There  were
six franchised restaurants in operation at the end of the Current
Quarter  compared to four franchised restaurants in operation  at
the end of the Comparable Quarter.

Franchise Fees and Royalties for the Current First Half decreased
to  $60,196  from $100,867 in the Comparable First Half  for  the
same reasons as the Current Quarter decline.

Total Restaurant Expenses increased $20,939 (.52%) in the Current
Quarter  over the Comparable Quarter primarily due to the Current
Quarter  including Preopening Cost Amortization of  approximately
$29,000  which  was not included in the Comparable  Quarter.    A
brief summary of the various components of Restaurant Expenses as
they  relate  to Restaurant Sales for the Current Quarter  versus
the Comparable Quarter follows:

                                     Current       Comparable
     Description                     Quarter        Quarter
                                                 
     Cost of Sales                    27.38%         27.18%
     Restaurant Labor and             33.40          33.48
     Benefits
     Other Operating Expenses         14.99          15.73
     Occupancy Costs                  10.88          10.31
     Preopening                         .63            .00
     Total Restaurant Expenses        87.27%         86.70%

Cost  of  Sales  as  a  percent of Sales  of  Food  and  Beverage
increased  slightly  in  the Current Quarter  due  to  food  cost
inflation.   Restaurant Labor and Benefits expense was  virtually
the  same  percent of sales as the prior year.   Other  Operating
Expenses, which includes advertising, utilities, supplies,  etc.,
were lower than the prior year primarily due to lower advertising
and  supplies  cost  offset partially by  decreased  video  poker
revenues.   Occupancy Costs increased in both absolute terms  and
as  a  percent of sales primarily due to higher depreciation  and
amortization  expense  for equipment and  leasehold  improvements
related to recent remodelings, and higher rent expense.

Total   Restaurant   Expenses  increased  $327,853   (3.49%)   to
$9,723,923  in  the Current First Half over the Comparable  First
Half   primarily  due  to  increased  cost  of  sales  and  labor
associated  with increased sales, and higher occupancy  expenses.
A  brief summary of the various components of Restaurant Expenses
as  they  relate to Restaurant Sales for the Current  First  Half
versus the Comparable First Half follows:

                                     Current       Comparable
     Description                    First Half     First Half
                                                 
     Cost of Sales                    27.58%         26.78%
     Restaurant Labor and             33.02          33.05
     Benefits
     Other Operating Expenses         15.78          16.56
     Occupancy Costs                  10.62          10.33
     Preopening                         .61            .00
     Total Restaurant Expenses        87.60%         86.73%

Cost  of  Sales  as  a  percent of Sales  of  Food  and  Beverage
increased slightly due to food cost inflation.  Restaurant  Labor
and  Benefits  was virtually the same as the prior  year.   Other
Operating  Expenses were lower than the prior year primarily  due
to  lower  advertising  and  supplies cost  offset  partially  by
decreased  video  poker revenues.  Occupancy Costs  increased  in
both  absolute terms and as a percent of sales primarily  due  to
higher  depreciation and amortization expense for  equipment  and
leasehold improvements related to recent remodelings, and  higher
rent expense.

Operations  and  Franchise  Expenses  for  the  Current   Quarter
increased  by  $48,316 (14.8%) over the Comparable Quarter.   The
increase  was  primarily  due  to  increased  training  expenses,
provision  for  uncollectable accounts and costs associated  with
subleases.

Operations and Franchise Expenses increased by $75,542 (10.5%) in
the  Current First Half over the Comparable First Half  primarily
due  to  increased  training expense and  costs  associated  with
subleases.   The  revenue  from these subleases  is  reported  in
Commissary, Rent and Other Income.

Corporate  Expenses  for  the Current Quarter  increased  $63,052
(20.6%)  over  the Comparable Quarter primarily due to  increased
marketing  and  salary expenses and a smaller  insurance  premium
credit  than  in the Comparable Quarter.  Corporate Expenses  for
the   Current  First  Half  increased  $13,639  (1.8%)  from  the
Comparable First Half.

Interest Expense for the Current Quarter increased $4,728  (5.0%)
from  the  Comparable Quarter and $13,851 (6.3%) for the  Current
First  Half.  The increased expense was due to a higher effective
interest rate on debt.


LIQUIDITY AND CAPITAL RESOURCES

At January 12, 1997, the Company had cash and cash equivalents of
$549,508 compared to $781,090 at the end of fiscal 1996.

The  current  ratio  was .52 at the end of  the  Current  Quarter
compared to .59 at the end of fiscal 1996.

The  anticipated financing of $160,000 of expenditures associated
with  the Alexandria remodeling was not consummated in the Second
Quarter.   The Company expects to obtain long-term financing  for
these expenditures by year-end.

Long-term Debt decreased to $2,534,150 at the end of the  Current
Quarter  compared  to $2,934,051 at the end of the  fiscal  year.
The  long-term debt/equity ratio decreased to 1.17 to 1.00 in the
Current Quarter from 1.30 to 1.00 at the end of the fiscal year.

In  order to provide funds to open new restaurants and to improve
short-term liquidity, the Company is considering opportunities to
refinance its long-term debt.

The   Company  normally  relies  on  cash  flow  from   operating
activities  to  finance  recurring  capital  expenditures.    The
Company's   capital   budget  for  normal   recurring   equipment
replacement and refurbishing is approximately $325,000, annually.

To  fund  expansion  and major remodels of its  restaurants,  the
Company  will  rely  primarily  on  landlord  financing  and  the
issuance  of  long-term debt in the form of  long-term  notes  or
capital leases.


PROSPECTIVE INFORMATION

There  are  several  franchised  restaurants  which  continue  to
experience location and local economic problems.  The Company has
signed  a  lease agreement to open a new Company-owned restaurant
late in calendar year 1997.  In addition, the Company has several
additional   sites  under  consideration  for  new  company-owned
restaurants.   A new franchised restaurant opened in Des  Moines,
Iowa, on January 23, 1997.

On November 5, 1996, each parish in Louisiana voted on whether to
continue  or  appeal casino and video poker gaming.  Video  Poker
was  continued  in  all  areas  in which  the  Company  currently
operates  video  poker machines except for four  locations  which
represent  approximately fifty percent of  the  Company's  gaming
revenue.   However,  in  those parishes voting  to  appeal  video
poker, existing video poker operators will be allowed to continue
to operate until July, 1999.


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 October
          31,  1996.   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 Ferrara                         1,900,213          21,301
Thomas J. Grace                       1,899,913          21,601
Elie V. Khoury                        1,899,913          21,601
David M. Liuzza                       1,899,913          21,601
Vincent J. Liuzza, Jr.                1,899,913          21,601
Sidney C. Pulitzer                    1,899,913          21,601
Miguel Uria                           1,899,913          21,601
          
          2.    Adoption of the Amendments to the Company's  1993
          Stock  Option Plan:  1,079,991 votes for; 137,340 votes
          against; 3,236 votes abstaining; and 700,947 broker non-
          votes.

          3.    Appointment  of  independent public  accountants,
          Ernst & Young, LLP, for the year 1997:  1,920,013 votes
          for; 400 votes against; and 1,101 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 exhibit is 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)



                                   Lee W. Randall


Date:  February 24, 1997      By:  /s/
                                   Lee W. Randall
                                   Vice President and
                                   Chief Financial Officer