SECURITIES AND EXCHANGE COMMISSION 
                             Washington, D.C.  20549 
 
                                   Form 10-Q 
 
(x)  Quarterly Report Pursuant to Section 13 or 15(d) of the Security Exchange 
     Act of 1934 For the Quarterly period ended June 27, 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 1-7138 
  
                                  CAGLE'S, INC. 
 
                GEORGIA                                58-0625713 
  (State or other Jurisdiction of         (I.R.S. Employer Identification No.) 
   Incorporation or Organization) 
 
                 2000 Hills Avenue, N. W. Atlanta, Georgia  30318 
 
              (Address of Principal Executive Offices and Zip Code) 
 
                                  (404) 355-2820 
 
              (Registrant's Telephone Number, Including Area Code) 
 
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 ______ 
 
Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date 
 
       Class                                      Outstanding June 27, 1998 
--------------------------------------          ----------------------------- 
Class A Common Stock, $1.00 Par Value	                 4,980,732 
 
 

PART 1.  FINANCIAL INFORMATION 
 
Cagle's, Inc. And Subsidiary 
Consolidated Balance Sheets 
June 27, 1998 and March 28, 1998 
(In Thousands, Except Par Value) 
(Period 06/27/98 Unaudited) 
                                                   06/27/98       03/28/98 
                                                 ------------   ------------- 
Assets  ----------------------------------------- 
CURRENT ASSETS 
Cash                                                  $  235          $  226
Accounts receivable, net of allowance for 
doubtful accounts of $860 and $752 at 
June 27, 1998 and March 28, 1998, 
respectively                                          17,721          17,269 
Inventories                                           28,783          32,567 
Other current assets                                   1,501           1,907 
                                                 ------------    ------------ 
Total current assets                                  48,240          51,969 
                                                 ------------    ------------ 
INVESTMENTS IN AND RECEIVABLES FROM 
UNCONSOLIDATED AFFILIATES                             27,744          27,069 
OTHER ASSETS                                             694             694 
PROPERTY, PLANT, AND EQUIPMENT                       103,242         102,495 
Less accumulated depreciation                        (44,425)        (42,808) 
                                                 ------------    ------------ 
Property, plant, and equipment, net                   58,817          59,687 
                                                 ------------    ------------ 
TOTAL ASSETS                                        $135,495        $139,419 
                                                 ============    ============ 

LIABILITIES & STOCKHOLDERS' EQUITY---------------                         
CURRENT LIABILITIES                                                          
Current Maturities of Long Term Debt              $    2,795      $    2,795
Income Taxes Payable                                     888               0 
Accounts payable                                       9,391           9,886 
Accrued expenses                                      10,840          11,007 
                                                 ------------    ------------ 
Total Current Liabilities                             23,914          23,688 
                                                 ------------    ------------ 
LONG TERM DEBT (net of current maturities)            40,669          48,366 
NONCURRENT DEFERRED INCOME TAXES                      12,223          12,223 
                                                 ------------    ------------ 
STOCKHOLDERS' EQUITY: 
Common stock, $1 par value; authorized 9,000  
shares and 5006 and 5006 shares issued 
respectively                                           5,006           5,006 
Capital in excess of par value                         7,946           7,946 
Treasury Stock                                          (336)           (354)
Retained earnings                                     46,073          42,544
                                                 ------------    ------------ 
Total stockholders' equity                            58,689          55,142 
                                                 ------------    ------------ 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 135,495       $ 139,419 
                                                 ============    ============ 

The accompanying notes are an integral part of these consolidated financial 
statements. 

Cagle's, Inc., & Subsidiary 
Consolidated Statements of Income 
For the 13 weeks ended June 27, 1998 and June 28, 1997 
(Amounts in thousands, except per share data) 
(Period 06/27/98 Unaudited) 
                                        13 wks    13 wks  
                                         ended     ended  
                                       06/27/98  06/28/97 
                                       --------  -------- 
Net Sales                               $82,874   $86,767 
 
Costs and Expenses: 
Cost of Sales                            73,864    81,645   
Selling and Delivery                      2,596     2,858 
General and Administrative                1,691     1,619    
                                        -------  --------   
Total costs and expenses                 78,151    86,122   
                                        -------  --------  
Income (Loss) From Operations             4,723       645   
 
Other Income(Expense):                                                   
Interest expense                           (846)     (977)   
Income from unconsolidated 
affiliates and other 
income, net                               1,871     2,201    
                                       --------  --------   
Income (Loss) Before Income Taxes         5,748     1,869  
 
(Provision) Benefit For Income Taxes     (2,070)     (699)   
                                       --------  --------   
Net Income (Loss)                        $3,678   $ 1,170  
                                       ========  ========  
Weighted Average Shares Outstanding 
              -Basic                      4,981     5,006   
              -Diluted                    5,003     5,006
                                       ========  ========   
Net Income (Loss) Per Common Share
              -Basic                   $   0.74  $   0.23
              -Diluted                 $   0.74  $   0.23 
Dividends Per Common Share                  .03       .03  
                                       ========  ========  
 
The accompanying notes are an integral part of these consolidated  
financial statements. 

Cagle's, Inc & Subsidiary 
Consolidated Statements of Cash Flows 
For the 13 weeks ended June 27, 1998 and June 28, 1997 
(In Thousands) 
(unaudited) 
                                                  June 27, 1998   June 28, 1997 
                                                  -------------   ------------- 
CASH FLOWS FROM OPERATING ACTIVITIES:                                         
Net Income                                         $     3,678    $     1,170
 
Adjustments to reconcile net income to net cash 
provided by operating activities: 
Depreciation and amortization                            2,095           1,954 
loss on disposal of property, plant and 
equipment                                                   28               9 
Changes in investment in and receivables from 
unconsolidated affiliates                                 (675)         (1,325) 
Changes in assets and liabilities: 
Accounts receivables, net                                 (452)            241 
Inventories                                              3,784          (2,629)
Insurance Proceeds Receivable                                0           3,054
Deferred Income Taxes asset                                  0             114
Other current assets                                       406             523
Accounts payable                                          (495)            532 
Accrued expenses                                          (167)            984 
Income taxes payable                                       888               0 
Deferred income taxes payable                                0            (471)
                                                        -------         ------- 
Total Adjustments                                        5,412           2,986
                                                        -------         ------- 
Net cash provided by operating activities                9,090           4,156
                                                        -------         ------- 
CASH FLOWS FROM INVESTING ACTIVITIES: 
Additions to property, plant, and equipment             (1,293)           (551)
Proceeds from the sale of property, plant, and equip.       43               0 
                                                        -------         -------
Net cash used in investing activities                   (1,250)           (546) 
                                                        -------         ------- 
Cash Flows from financing activities: 
Payments of long-term debt and capital 
lease obligations                                       (7,697)         (3,416)
Dividends Paid                                            (150)           (150)
Repurchase of Common Stock                                 (44)              0
Proceeds from exercise of Stock Options                     60               0
                                                        -------         ------- 
Net cash used by financing activities                   (7,831)         (3,566) 
                                                        -------         ------- 
NET INCREASE IN CASH                                         9              44
CASH AT BEGINNING OF PERIOD                                226              94 
                                                        -------         ------- 
CASH AT END OF PERIOD                                   $  235          $  138 
                                                        =======         ======= 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: 
Cash paid during the period for:
   Interest                                             $1,003          $  691 
                                                        =======         ======= 
Income Taxes                                            $    8          $  736 
                                                        =======         ======= 
The accompanying notes are an integral part of these consolidated financial 
statements. 

Cagle's, Inc. & Subsidiary 
Notes to Consolidated Condensed Financial Statements 
June 28, 1997 
 
 
1.  In the opinion of Management, the accompanying unaudited consolidated 
     financial statements contain all adjustments which are of normal and 
     recurring nature, necessary to present fairly the consolidated financial 
     position of Cagle's, Inc. and Subsidiary (the "Company") as of June 27, 
     1998 and March 28, 1998 and the results of their operations and their 
     cash flows for the 13 weeks ended June 27, 1998 and June 28, 1997.  
 
2.  The results of operations for the 13 weeks ended June 27, 1998 and June 
    28, 1997 are not necessarily indicative of the results expected for the
    full year. 
 
3.  Inventories consisted of the following:  (In Thousands) 
 
                                   June 27, 1998        March 28, 1998 
 
Finished Product                        $11,073               $14,295 
Field Inventory and Breeders             13,924                14,036  
Feed, Eggs, and Medication                2,235                 2,582
Supplies                                  1,551                 1,654
                                    ----------------     -------------- 
                                        $28,783               $32,567 
 
4.  Use of Estimates 
     The preparation of financial statements in conformity with generally 
     accepted accounting principles requires management to make estimates 
     and assumptions that affect the reported amounts of assets and liabilities,
     the disclosures of contingent assets and liabilities at the date of the  
     financial statements, and the reported amounts of revenues and expenses 
     during the reporting period.  Actual results may vary from those
     estimates. 
 
5.  Investments in and Receivables from Unconsolidated Affiliates. 
     The Company accounts for its investments in (5) five unconsolidated 
     affiliates using the equity method.  The Company's share of earnings from
     from these affiliates totaled $1,902,000 for the 13 weeks ended June 27, 
     1998. The earnings reported for the 3 unconsolidated affiliates existing
     during the 13 weeks ended June 28, 1997 was $2,168,000. 
 
 
Management's Discussion and Analysis of Financial  
Condition and Results of Operation 
June 27, 1998 
 
 
Financial Condition 
 
Improved profitability and reduced inventory levels enabled the Company to 
reduce its total funded debt by $7.7 million as compared to March 28, 1998 
levels thus improving its leverage ratio from .48 to 1 at March 28, 1998 to 
 .43 to 1 at June 27, 1998.
As of June 27, 1998 the Company had $10,885,000 available for borrowing under
unsecured lines of credit and is confident that this is adequate to fund 
anticipated requirements.

 
Results of Operations 
 
Sales for the 13 weeks ended June 27, 1998 declined by 4.49% as compared to the
comparable period of a year ago and is attributable mainly to 12% less 
production pounds while the quoted Georgia Dock Market Price for whole birds 
averaged 2.8% lower than for the comparable period of a year ago.  The trend 
was one of strengthening prices for white meat throughout the quarter.
Gross margins for the quarter ended June 27, 1998 averaged 10.9% as compared to 
5.9% during the comparable period ended June 28, 1997.  The primary cause of 
this major improvement is lower production cost due to 19.2% lower feed cost as
feed grain accounts for the largest single factor in cost of producing a broiler
chicken.


 
Selling, Delivery and Administrative Expenses 
 
Selling, delivery and administrative expenses as a group declined by 4.2% for 
the quarter as compared to the comparable period of a year ago with the major 
reduction in outside storage expense due to reduced inventory levels.
 
Interest Expense 
 
Interest expense for the quarter ended June 27, 1998 was 13.4% lower than for 
the same quarter of a year ago and reflective the lower borrowing levels 
during the quarter.
 
Other Income 
 
Other income declined by 15% for the 13 weeks ended June 27, 1998 as compared 
to the 13 weeks ended June 28, 1997.  The decline is due to the impact of 
start-up cost in the Cagle's/Keystone Foods LLC and Franklin Poultry 
Equipment, LLC which are recorded using the equity method and consequently 
netting against the recorded earnings of the other joint venture companies.

Income Taxes 
 
The provision for income taxes reflects taxes at statutory rates adjusted for 
available tax credits to which the company is entitled.

 

 
Part II	Other Information 
 
Item 9  Exhibits and Reports on Form 8-K 
	a.  Not applicable 
	b.  No reports on Form 8-K were filed during the quarter. 
 
Signatures 
 
	Pursuant to the requirements of the Securities and Exchange Act of 1934, 
the registrant has duly caused this report to be signed on its behalf by the  
undersigned thereunto duly authorized. 
 
 
 
Date:  August 6, 1998                      /s/      J. Douglas Cagle 
 
Date:  August 6, 1998                      /s/      Kenneth R. Barkley