<TABLE>

                                            Exhibit 13.1
            Financial Highlights from Registrant's Annual Report to Shareholders      
<CAPTION>

WLR FOODS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS
Dollars in thousands, except
per share data
<S>                              <C>           <C>         <C>        <C>       <C>
                                  June 28,     June 29,     July 1,    July 2,   July 3,
Fiscal year ended:                  1997         1996        1995       1994      1993     
                                  ---------    --------    --------   --------  --------   
OPERATIONS
Net sales                        $1,013,777    $997,632    $908,776   $727,270  $616,702   
Cost of sales                       956,948     897,892     785,085    632,620   535,014   
                                 ----------    --------    --------   --------  --------   
Gross profit                         56,829      99,740     123,691     94,650    81,688   

Selling, general and            
 administrative expenses             95,728      97,324      91,420     63,606    55,732   
                                 ----------    --------    --------   --------  --------   
Operating income (Loss)             (38,899)      2,416      32,271     31,044    25,956   

Interest expense                     13,143       9,359       6,666      4,989     3,816   
Other (income) expense, net          (1,646)        321        (332)      (431)     (567)  
                                 ----------    --------    --------   --------  --------   
Total other expense, net             11,497       9,680       6,334      4,558     3,249   

Earnings (loss) before income   
 taxes and minority interest        (50,396)     (7,264)     25,937     26,486    22,707   
Income tax expense (benefit)        (18,260)     (2,610)      9,749      9,897     8,057   
Minority interest                        47          32          55         38        43   
                                 ----------    --------    --------   --------  --------   
Net earnings (loss) before      
 cumulative effect of change in
 accounting                         (32,183)     (4,686)     16,133     16,551    14,607   
Cumulative effect on prior      
 years of change in accounting            -           -           -          -         -   
                                 ----------    --------    --------      ------  --------  
                                                                            -- 
Net earnings (loss)                 (32,183)     (4,686)     16,133     16,551    14,607   
Less preferred stock dividends            -           -           -          -     1,389   
                                 ----------    --------    --------   --------  --------   
Net earnings (loss) available   
 to common shareholders            $(32,183)    $(4,686)    $16,133    $16,551   $13,218   
                                 ==========    ========    ========   ========  ========   
PER COMMON SHARE
Net earnings (loss) before      
 cumulative effect of change in 
 accounting                          $(1.86)     $(0.27)      $0.90      $1.01     $0.95   
Cumulative effect on prior      
 years of change in accounting            -           -           -          -         -   
                                 ----------    --------    --------   --------  --------   
Net earnings (loss) per share   
 (primary)                           $(1.86)     $(0.27)      $0.90      $1.01     $0.95   

Net earnings (loss) per share   
 (fully diluted)                     $(1.86)      (0.27)       0.90       1.01      0.93   

Cash dividends declared
 (excluding Cassco pooling)            0.12        0.24        0.22       0.21      0.21   

Book value                             7.89       10.00       10.47       9.45      8.66   
                                                  
Year-end stock price                   8.50       14.00       14.38      17.00     11.33   

Common shares outstanding 
 (in thousands):
        Average for the year         17,276      17,528      17,859     16,451    15,667<F1>
        At year end                  16,597      17,682      17,298     16,514    16,427   
                                 ==========     =======     =======   ========   =======   

                                       1
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<TABLE>

WLR FOODS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS-Continued
Dollars in thousands, except
per share data
<CAPTION>
                                  June 28,      June 29,    July 1,    July 2,     July 3,
Fiscal year ended:                  1997          1996       1995        1994        1993  
                                 ---------     ---------  ---------   --------   --------- 
<S>                                <C>         <C>         <C>        <C>         <C>
FINANCIAL POSITION AT END OF YEAR
Working capital (Deficit)          $(31,397)   $144,621    $120,562    $69,989     $57,509 

Property, plant and equipment,  
 net                                159,426     176,691     174,163    139,854     140,540 

Total assets                        416,728     451,121     372,525    283,051     265,626 

Long-term debt                        5,040     138,510     106,481     46,368      52,253 

Common stock subject to         
 repurchase                           4,438      17,750      17,750          -           - 

Preferred shareholders' 
 equity <F2>                              -           -           -          -           - 

Common shareholders' equity        $126,558    $159,010    $163,344   $156,157    $142,255 
                                   ========    ========    ========   ========    ======== 
ANALYTICAL & OTHER INFORMATION

Current ratio (compared to 1)          0.89        2.18        2.67       2.02        1.92 

Total debt/total 
 capitalization <F3>                   61.2%       55.1%       44.7%      28.4%       33.5%

Return on beginning total       
 equity                                 NMF         NMF        10.3%      11.6%       13.1%

Capital expenditures                $11,245     $18,771     $17,251    $19,186     $31,766 
Depreciation expense                 28,088      28,243      24,817     21,333      18,115 
Amortization expense                    500         742         598        520         445 
Interest expense                     13,143       9,359       6,666      4,989       3,816 

Cash dividends declared:
  Common stock                        2,078       4,233       4,073      3,513       3,124 
  Preferred stock                         -           -           -          -       1,389 

Market capitalization of common 
 stock at year end                 $141,075    $247,547    $248,654   $280,738    $186,168 
                                   ========    ========    ========   ========    ======== 

All information reflects the three-for-two stock split in the 
 form of a 50% stock dividend declared on February 28, 1995.

<FN>
<F1> Fully diluted shares.

<F2> In March 1993, the Company repurchased all the preferred stock
     issued in January 1992.

<F3> Common stock subject to repurchase classified as debt. 
</FN>    

WLR Foods, Inc. common stock was first publicly traded in 1988.

                                       2
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<TABLE>
WLR FOODS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS-Continued
Dollars in thousands, except
per share data
<CAPTION>
<S>                                   <C>        <C>       <C>         <C>        <C>
                                      June 27,   June 29,  June 30,    July 1,    July 2,
Fiscal year ended:                      1992       1991      1990        1989       1988   
                                      --------   --------   --------   --------   -------- 
OPERATIONS
Net sales                             $514,465   $502,238   $494,156   $465,951   $381,363 
Cost of sales                          454,331    434,509    415,803    391,640    335,855 
                                      --------   --------   --------   --------   -------- 
Gross profit                            60,134     67,729     78,353     74,311     45,508 

Selling, general and           
 administrative expenses                48,191     50,019     49,595     44,566     37,420 
                                      --------   --------   --------   --------   -------- 
Operating income                        11,943     17,710     28,758     29,745      8,088 

Interest expense                         2,755        928        925      2,037      1,536 
Other (income) expense, net               (251)      (453)      (491)       166       (184)
                                      --------   --------   --------   --------   -------- 
Total other expense, net                 2,504        475        434      2,203      1,352 

Earnings before income   
taxes and minority interest              9,439     17,235     28,324     27,542      6,736 
Income tax expense                       3,518      6,521     10,895     10,520      2,952 
Minority interest                           25         33         34       (206)        60 
                                      --------   --------   --------   --------   -------- 
Net earnings before       
cumulative effect of change    
in accounting                            5,896     10,681     17,395     17,228      3,724 

Cumulative effect on prior     
 years of change in accounting               -          -          -          -      1,112 
                                      --------   --------   --------   --------   -------- 
Net earnings                             5,896     10,681     17,395     17,228      4,836 
Less preferred stock dividends             982          -          -          -          - 
                                      --------   --------   --------   --------   -------- 
Net earnings available to
 common shareholders                    $4,914    $10,681    $17,395    $17,228     $4,836 
                                       =======   ========   ========   ========   ======== 
PER COMMON SHARE
Net earnings before
 cumulative effect of change
 in accounting                           $0.35      $0.68      $1.11      $1.11      $0.24 
Cumulative effect on prior     
 years of change in accounting               -          -          -          -       0.07 
                                      --------   --------   --------   --------   -------- 
Net earnings per share
  (primary)                              $0.35      $0.68      $1.11      $1.11      $0.31 

Net earnings per share
 (fully diluted)                          0.35       0.68       1.11       1.11       0.31 

Cash dividends declared
 (excluding Cassco pooling)               0.21       0.21       0.19       0.18       0.21 

Book value                                6.44       7.33       6.86       5.86       4.95 

Year-end stock price                      9.67      12.00      12.33      11.87       5.63 

Common shares outstanding 
 (in thousands):  
         Average for the year           14,277     15,782     15,645     15,600     15,600 
         At year end                    12,719     15,782     15,782     15,600     15,600 

                                       3
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<TABLE>                                                      
WLR FOODS, INC. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS-Continued
Dollars in thousands, except
per share data
<CAPTION>

                                      June 27,    June 29,  June 30,    July 1,    July 2,
Fiscal year ended:                      1992        1991      1990        1989       1988  
                                     ---------   --------  ---------   --------   -------- 
<S>                                   <C>        <C>        <C>         <C>        <C>
FINANCIAL POSITION AT END OF YEAR
Working capital                       $ 40,337   $ 49,532   $ 46,039    $42,914    $35,169 

Property, plant and equipment,
 net                                   113,017     88,807     71,414     59,687     53,524 

Total assets                           207,736    175,329    157,763    142,832    124,810 

Long-term debt                          38,148     18,678      6,402      7,858      8,995 

Common stock subject to                                              
 repurchase                                  -          -          -          -          - 

Preferred shareholders'
 equity <F2>                            29,507          -          -          -          - 

Common shareholders' equity           $ 81,881   $115,625   $108,258    $91,455    $77,181 
                                       =======   ========   ========    =======    ======= 
ANALYTICAL & OTHER INFORMATION

Current ratio (compared to 1)             1.80       2.42       2.20       2.12       2.03 

Total debt/total               
 capitalization <F3>                      32.0%      16.1%       8.5%      13.9%      16.0%

Return on beginning total      
 equity                                    5.1%       9.9%      19.0%      22.3%       6.6%

Capital expenditures                   $36,107    $29,471    $20,360    $16,001     $8,163 

Depreciation expense                    14,041     11,544      9,932      8,595      7,057 
Amortization expense                       168          -          -          -          - 
Interest expense                         2,755        928        925      2,037      1,536 

Cash dividends declared:
  Common stock                           2,854      3,314      2,948      2,643      2,503 
  Preferred stock                          982          -          -          -          - 

Market capitalization of       
 common stock at year end             $122,942   $189,378   $194,638   $185,432    $87,880 
                                      ========   ========   ========   ========    ======= 

All information reflects the three-for-two stock split in the form of 
 a 50% stock dividend declared on February 28, 1995.

<FN>
<F1> Fully diluted shares.

<F2> In March 1993, the Company repurchased all the preferred stock
     issued in January 1992.

<F3> Common Stock subject to repurchase classified as debt. 
</FN>    

WLR Foods, Inc. common stock was first publicly traded in 1988.
                                             
                                       4
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