FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 2O549

(Mark One)

   [ X ]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended      March 28, 1998
                               -------------------------------------

                                       OR

   [   ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to
                               ----------------    -----------------

Commission file number   0-7166
                       --------------


                             DOUGHTIE'S FOODS, INC.
             (Exact name of Registrant as specified in its charter)


             VIRGINIA                                     54-0903892
  (State or other jurisdiction of                      (I.R.S. employer
   incorporation or organization)                   identification number)


                 2410 WESLEY STREET, PORTSMOUTH, VIRGINIA 23707
                    (Address of principal executive offices)

                                 (757) 393-6007
              (Registrant's telephone number, including area code)


             ------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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
   -----     -----


                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

Common Stock, $1 par value - 1,495,023 shares as of March 28,1998

<PAGE>
                 PART I.  FINANCIAL INFORMATION

Item 1.      Financial Statements

<TABLE>
                 DOUGHTIE'S FOODS, INC. AND SUBSIDIARY
               CONSOLIDATED BALANCE SHEETS (Unaudited) <F1>

<CAPTION>
                                           March 28,            December 27,
                                             1998                   1997
                                         -------------          ------------

<S>                                      <C>                    <C>

             ASSETS

CURRENT ASSETS:
 Cash                                    $      28,878          $     26,929
 Accounts receivable - trade, net            7,585,540             8,566,995
 Inventories                                 4,278,591             4,669,291
 Deferred income taxes                         372,220               372,220
 Prepaid expenses and other
  current assets                               189,518                68,166
                                         -------------          ------------

          Total Current Assets              12,454,747            13,703,601
                                         -------------          ------------

PROPERTY, PLANT AND EQUIPMENT -
 AT COST:
 Land                                          280,827               280,827
 Buildings                                   3,608,055             3,608,055
 Delivery equipment                            270,102               169,195
 Plant and refrigeration equipment           1,653,266             1,590,626
 Office equipment                              492,894               491,078
                                         -------------          ------------

                                             6,305,144             6,139,781

 Less - accumulated depreciation             3,583,878             3,513,216
                                         -------------          ------------

                                             2,721,266             2,626,565
                                         -------------          ------------

OTHER ASSETS                                   112,669               114,651
                                         -------------          ------------

                                         $  15,288,682          $ 16,444,817
                                         =============          ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Current portion of long-term debt       $     533,333          $    533,333
 Accounts payable                            3,074,243             3,198,641
 Income taxes payable                          596,084               891,657
 Accrued salaries, commissions and
  bonuses                                       36,965               182,965
 Other accrued liabilities                      41,840                63,948
                                         -------------          ------------

         Total Current Liabilities           4,282,465             4,870,544

LONG-TERM DEBT - less current portion        2,033,993             2,737,910
                                         -------------          ------------

         Total Liabilities                   6,316,458             7,608,454
                                         -------------          ------------

STOCKHOLDERS' EQUITY:
 Common stock - $1 par value;
  authorized 2,000,000 shares, issued
  and outstanding 1,495,023 shares at
  March 28, 1998 and December 27, 1997       1,495,023             1,495,023
 Additional paid-in capital                  2,807,037             2,807,037
 Retained earnings                           4,670,164             4,534,303
                                         -------------          ------------

         Total Stockholders' Equity          8,972,224             8,836,363
                                         -------------          ------------

                                         $  15,288,682          $ 16,444,817
                                         =============          ============

<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
                 DOUGHTIE'S FOODS, INC. AND SUBSIDIARY
            CONSOLIDATED STATEMENTS OF INCOME (Unaudited) <F1>

<CAPTION>
                                            THREE MONTHS ENDED
                                    ------------------------------------

                                      March 28,               March 29,
                                        1998                    1997
                                    -------------           -------------
<S>                                 <C>                     <C>

NET SALES                           $  19,308,576           $  18,692,236

COST OF GOODS SOLD                     16,057,978              15,509,759
                                    -------------           -------------

GROSS PROFIT                            3,250,598               3,182,477
                                    -------------           -------------

SELLING, GENERAL AND ADMINISTRATIVE
 EXPENSES                               2,914,860               2,881,229

INTEREST EXPENSE                           46,600                  71,579
                                    -------------           -------------

                                        2,961,460               2,952,808
                                    -------------           -------------

INCOME BEFORE INCOME TAXES                289,138                 229,669

INCOME TAX EXPENSE                        108,427                  86,126
                                    -------------           -------------

NET INCOME                          $     180,711           $     143,543
                                    =============           =============

NUMBER OF SHARES USED IN COMPUTING
 EARNINGS PER SHARE                     1,495,023               1,497,078
                                    =============           =============

EARNINGS PER SHARE:
 BASIC                              $         .12           $         .10
                                    =============           =============

 DILUTED                            $         .12           $         .10
                                    =============           =============

CASH DIVIDENDS PER SHARE            $         .03           $        .027
                                    =============           =============

<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>

                 DOUGHTIE'S FOODS, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) <F1>

<CAPTION>

                                                  THREE MONTHS ENDED
                                          -----------------------------------

                                           March 28,               March 29,
                                             1998                    1997
                                         -------------           ------------

<S>                                      <C>                     <C>
Cash flows from operating activities:
 Net income                              $    180,711            $   143,543
 Adjustments to reconcile net income
  to net cash provided by
  (used for) operations:
  Depreciation                                 70,662                 80,841
  Loss on sale of property, plant
   and equipment                                    0                  5,498

(Increase) decrease in assets:
 Accounts receivable - trade, net             981,455                304,879
 Inventories                                  390,700                744,350
 Prepaid expenses and other current
  assets                                     (121,352)              (167,354)
 Other assets                                   1,982                (26,969)

Increase (decrease) in liabilities:
 Accounts payable                            (124,398)               340,423
 Income taxes payable                        (295,573)                86,126
 Accrued salaries, commissions and
  bonuses                                    (146,000)               (92,169)
 Other accrued liabilities                    (22,108)                76,865
                                         -------------           ------------

                                              916,079              1,496,033
                                         -------------           ------------

Cash flows from investing activities:
 Additions to property, plant and
  equipment                                  (165,363)              (102,115)
 Proceeds from sale of property,
  plant and equipment                               0                614,726
                                         -------------           ------------

                                             (165,363)               512,611
                                         -------------           ------------

Cash flows from financing activities:
 Changes in long-term debt, including
  current portion                            (703,917)            (1,983,333)
 Cash dividends                               (44,850)               (39,922)
                                         -------------           ------------

                                             (748,767)            (2,023,255)
                                         -------------           ------------

Net increase (decrease) in cash                 1,949                (14,611)
Cash at beginning of period                    26,929                372,687
                                         -------------           ------------

Cash at end of period                    $     28,878            $   358,076
                                         =============           ============
<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
                 DOUGHTIE'S FOODS, INC. AND SUBSIDIARY

          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


NOTE 1
------

The consolidated  financial statements include the accounts of Doughtie's Foods,
Inc. (the "Company") and its wholly owned subsidiary.  All material intercompany
accounts and transactions have been eliminated in consolidation.

Although  the  accompanying  financial  statements  are  unaudited,   management
believes that they contain all adjustments  (consisting only of normal recurring
accruals)  necessary to present  fairly the  financial  position as of March 28,
1998 and  December 27, 1997,  results of  operations  for the three months ended
March 28, 1998 and March 29,  1997,  and cash flows for the three  months  ended
March 28, 1998 and March 29,  1997.  The results of  operations  for the periods
cited above are not necessarily indicative of the results to be expected for the
full year.

NOTE 2
------

On  February  28,  1997,  the  Company  sold  the  assets  of its  manufacturing
division's  barbecue  and chili  business  for  approximately  $840,000 in cash.
Barbecue and chili sales accounted for less than 5% of  consolidated  1996 sales
volume. The net pretax gain on the sale was approximately $50,000.

On April 14, 1997, the Company sold the assets of its  manufacturing  division's
deli meats  business for  approximately  $486,000.  The terms of the sale were a
$286,000  cash down  payment  with the  $200,000  balance in the form of secured
notes.  Deli meat sales  accounted for less than 5% of  consolidated  1996 sales
volume. The net pretax gain on the sale was approximately $140,000.

NOTE 3
------

Inventories are stated at the lower of last-in, first-out (LIFO) cost or market.
Because  inventory  valuations  under  the LIFO  method  are  based on an annual
determination,  estimates  must be made at interim  dates of year-end  costs and
levels of inventories.  The possibility of variations between estimated year-end
costs  and  levels of LIFO  inventories  and the  actual  year-end  amounts  may
materially  affect the results of operations as finally  determined for the full
year.

NOTE 4
------

Cash paid for  interest  totaled  $46,600 and $71,579 for the three months ended
March 28, 1998 and March 29, 1997, respectively.

Cash paid for income taxes totaled  $404,000 and $100 for the three months ended
March 28, 1998 and March 29, 1997, respectively.


Item 2.      Management's Discussion and Analysis of Financial
             Condition and Results of Operations


Results of Operations
---------------------

     Sales for the  quarter  ended  March 28,  1998 were  $19.3  million or 3.2%
higher than sales for the prior year's first quarter of $18.7 million.  Sales to
multi-unit customers account for the majority of the increase. This increase was
offset by a reduction in sales caused by the sales of the manufacturing division
in the first and second quarters of 1997.

     The  Company's  gross profit  margin  (gross  profit as a percentage of net
sales)  decreased  from 17.03% in the quarter ended March 29, 1997 to 16.83% for
the quarter ended March 28, 1998. This decrease was a result of the sales of the
manufacturing division, which had a higher markup.

     The Company's selling, general and administrative expenses,  expressed as a
percentage of net sales,  decreased  from 15.42% in the first quarter of 1997 to
15.09%  in  1998.  The  decrease  was a result  of the  increase  in sales  from
multi-unit  accounts  without a corresponding  increase in selling,  general and
administrative expense.

     Interest expense for the quarter ended March 28, 1998 decreased to 0.24% of
sales  compared  to 0.38% of sales  for the  first  quarter  of 1997.  Decreased
borrowing  levels  and lower  interest  rates  were the  cause of the  decreased
expense.  As the interest on the Company's debt is both London Interbank Offered
Rates (LIBOR) and prime related,  interest  expense will increase or decrease in
subsequent periods based on fluctuations in these rates and the borrowing levels
of the Company.

     Income tax  expense  was  $108,000  for the  quarter  ended  March  28,1998
compared to $86,000 for the corresponding period of 1997.

     The Company reported net income of $181,000 or $.12 per share for the first
quarter  of 1998  compared  to net income of  $144,000  or $.10 per share in the
first quarter of 1997.


Liquidity
---------

     The Company uses a number of liquidity  indicators for internal  evaluation
purposes.  Certain of these  measures as of March 28, 1998 and December  27,1997
are set forth below:

                                      March 28,     December 27,
                                        1998            1997
                                    ------------    ------------

  Total Debt to Total Debt Plus
     Stockholders' Equity                .22             .27

  Current Assets to Current
     Liabilities                        2.91            2.81

  Inventory Turnover (The
     Annualized Cost of Goods
     Sold to Ending Inventory)         15.01           15.23


     The Company's  liquidity  indicators  remained  relatively  unchanged  from
December 27,1997 until March 28, 1998.

     On February  28,  1997,  the Company  sold the assets of its  manufacturing
division's  barbecue  and chili  business  for  approximately  $840,000 in cash.
Barbecue and chili sales accounted for less than 5% of  consolidated  1996 sales
volume. The net pretax gain on the sale was approximately $50,000.

     On April  14,  1997,  the  Company  sold the  assets  of its  manufacturing
division's deli meats business for approximately $486,000. The terms of the sale
were a  $286,000  cash down  payment  with the  $200,000  balance in the form of
secured notes.  Deli meat sales accounted for less than 5% of consolidated  1996
sales volume. The net pretax gain on the sale was approximately $140,000.


Capital Resources
-----------------

     The Company's debt financing at March 28, 1998, consisted of the following:

     A  $7,500,000  revolving  bank note at LIBOR plus 1.50%.  The LIBOR rate at
March 28, 1998 was 5.69%.  The note is due three years after the annual  renewal
date, currently July, 2000, subject to annual renewal. As of March 28, 1998, the
Company had borrowed  $950,660  against this credit line and had  $6,549,340  of
additional borrowing capacity.

     A  $2,000,000  Industrial  Revenue  Bond  from a bank  for the  purpose  of
expanding the Company's plant and office  facilities in Portsmouth,  Virginia at
an annual interest rate of 91.50% of prime. The prime rate at March 28, 1998 was
8.5%.  As of March 28,  1998,  the Company  had fully  utilized  the  Industrial
Revenue Bond and the outstanding balance was $566,666.

     A $1,750,000  bank term loan at LIBOR plus 1.50%.  The loan is to be repaid
in quarterly  installments  of $100,000.  As of March 28, 1998, the  outstanding
balance was $1,050,000.  The funds were used to finance the increased  inventory
and accounts  receivable  required to service a one-year contract awarded to the
Company in January 1996 by the United  States  Department  of Defense to furnish
food items to various military installations. The contract contains three yearly
renewal  options and was  renewed  for 1998.  The United  States  Department  of
Defense had estimated annual sales volume to be approximately $19 million. Based
on actual sales volume to date, estimated annual sales volume should approximate
$13 million.

     While the Company does not  anticipate  a material  increase in its capital
requirements in the near future, such an increase, if it occurs, is likely to be
met through additional long-term debt financing.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

     Not applicable.

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         There are no material  pending legal  proceedings,  other than ordinary
routine  litigation  incidental  to the  business,  to which the  Company or its
subsidiary is a party or to which any of their property is the subject.

Item 2.  Changes in Securities

     Not applicable.

Item 3.  Defaults upon Senior Securities

     Not applicable.

Item 4.  Submission of Matters to a Vote of Security Holders

     Not applicable.

Item 5.  Other Information

     Not applicable.

Item 6.  Exhibits and Reports on Form 8-K

     (a) Exhibits

           27.  Financial Data Schedule.

     (b)   Reports on Form 8-K

     The Company filed no reports on Form 8-K during the quarter ended March 28,
     1998.

         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.

                               DOUGHTIE'S FOODS, INC.



                                  /s/ Marion S. Whitfield, Jr.
                               -----------------------------------------
May 12, 1998                   By:   Marion S. Whitfield, Jr.
                                                (Signature)
                                      Senior Vice President
                                     (Principal Financial and
                                     Accounting Officer)