**SECURITIES AND EXCHANGE COMMISSION 
WASHINGTON, D.C. 20549 
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**FORM 10-Q 
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(Mark One)  
(x)   **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended July 03, 2004 

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 

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**CAGLES, INC. 
(Exact name of Registrant as specified in its charter) 
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                                                   GEORGIA                                                           58-0625713   
                                                     (State or other jurisdiction of                                                           (I.R.S. employer 
                                                     incorporation or organization)                                                          identification no.) 

                                      2000 Hills Ave., Atlanta, Ga,                                                                         30318 
                               (Address of principal executive offices)                                                             (Zip code)  

                                                 Registrant’s telephone number, including area code: (404) 355-2820  
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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 by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b - 2).    Yes (x)    No (  )  

The Registrant had 4,742,998 shares of Class A Common Stock, outstanding as of July 03, 2004.  

PART 1.  FINANCIAL INFORMATION 

Item1. Financial Statements 

Cagle's, Inc. & Subsidiary Consolidated Balance Sheets  
July 3, 2004 and April 3, 2004  
(In Thousands, Except Par Value)  
(Period 7/3/04 Unaudited)  

7/3/2004 
4/3/2004
Assets  ----------------------------------------- 

CURRENT ASSETS 

Cash 
 $         14  
 $          11 
Accounts receivable, less allowance for doubtful accounts 
      12,327  
      11,662 
Inventories 
      21,384  
      19,329 
Note receivable 
          667  
        1,000 
Refundable income tax, current portion 
        1,068  
        1,068 
Other current assets 
          664  
          657 
Total Current Assets 
      36,124  
     33,727 

Investments in unconsolidated affiliates 
       5,092  
        4,041 

Property, Plant, and Equipment 

Land 
        1,976  
        1,976 
Buildings, machinery and equipment 
    101,466  
    101,466 
Autos & trucks 
       4,704  
       4,639 
Construction in progress 
           105  
               - 

    108,251  
    108,081 

Less accumulated depreciation 
    (64,755) 
    (63,857)
Property, plant, and equipment, net 
     43,496  
     44,224 

Other Assets: 

Long term refundable taxes 
        2,195  
       2,390 
Intangible assets 
           165  
           169 
Deferred income taxes 
       8,450  
      11,892 
Other assets 
       3,537  
       3,576 
Total Other Assets 
      14,347  
      18,027 
TOTAL ASSETS 
 $  99,059  
 $ 100,019 

LIABILITIES & STOCKHOLDERS' EQUITY--------------- 

CURRENT LIABILITIES 

Current maturities of long term debt 
 $    2,920  
 $    2,921 
Accounts payable 
      13,819  
      18,367 
Accrued expenses 
        6,611  
       6,675 
Deferred income taxes 
       2,238  
       2,237 
Total Current Liabilities 
      25,588  
     30,200 

Long Term Debt (net of current maturities) 
     32,043  
     34,552 
Other Noncurrent Liabilities 
  1,000  
  1,000 

STOCKHOLDERS' EQUITY: 

Common stock, $1 par value; authorized 9,000 shares, 4,744 shares 

issued at July 3, 2004 and April 3, 2004, respectively 
       4,744  
       4,744 
Capital in excess of par value 
        4,198  
        4,198 
Treasury stock held for options, at cost 
           (80) 
           (80)
Retained earnings 
      31,566  
     25,405 
Total Stockholders' Equity 
     40,428  
     34,267 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 
 $  99,059  
 $ 100,019 

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 July 3, 2004 
and the 13 weeks ended June 28, 2003  
(In Thousands, except per share data)  
(Unaudited)  

13 wks ended 

13 wks ended 
7/3/2004 

6/28/2003 

Net Sales 
 $          67,152 
 $          72,450  
Costs and Expenses: 

Cost of Sales 
            55,055 
            72,587  
Selling and Delivery 
              1,566 
              2,024  
General and Administrative 
              1,355 
              2,088  
Total costs and expenses 
            57,976 
            76,699  

Income (Loss) From Operations 
              9,176 
             (4,249) 

Other Income(Expense): 

Interest expense 
 (701)
             (1,778) 
Other Income, Net 
                   13 
                    2  

Earnings (Loss) Before equity in earnings of 

unconsolidated affiliates and income taxes 
              8,488 
             (6,025) 

Equity in earnings of unconsolidated affiliates 
              1,116 
                 733  
Income (Loss) before income taxes 
              9,604 
             (5,292) 

Income Taxes Provision (Benefit) 
              3,442 
             (1,903) 
Net Income (Loss) 
 $           6,162 
 $          (3,389) 

Weighted Average Shares Outstanding 

-Basic 
4,743 
4,745  
-Diluted 
4,743 
4,745  

Net Income (Loss) Per Common Share 

-Basic 
 $             1.30 
 $            (0.71) 
-Diluted 
 $             1.30 
 $            (0.71) 
Dividends Per Common Share 
 $                   - 
 $                    -  

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 July 3, 2004 and June 28, 2003 
(In Thousands) (Unaudited)  

07/03/04 

06/28/03 
CASH FLOWS FROM OPERATING ACTIVITIES: 

Net Income (Loss) 
 $          6,162  

 $        (3,389)

Adjustments to reconcile net income (loss) to net cash provided 

 by operating activities: 

Depreciation and amortization 
                962  

             3,246 
Changes in assets and liabilities: 

Accounts receivables, net 
              (665)

           (2,309)
Gain on sales of property, plant & equip. 
                 (10)

                     - 
Income Tax Receivables 
                  195  

                     - 
Inventories 
           (2,055)

                134 
Note receivable 
                333  

                     - 
Other current assets 
                    (7)  

              (256)
Changes in investment in unconsolidated affiliates 
            (1,051)

                 (81)
Accounts payable 
           (4,548)

             2,328 
Accrued expenses 
                (64)

                448 
Deferred Income Taxes 
                3,442

            (1,904)
Total Adjustments 
            (3,468)

             1,607 
Net cash provided (used) by operating activities 
              2,694

            (1,782)

CASH FLOWS FROM INVESTING ACTIVITIES: 

Additions to property, plant, and equipment 
            (220)

                (58)
(Increase) decrease in Other Assets 
             39  

                379 
Net cash provided (used) by investing activities 
             (181)  

                321 

CASH FLOWS FROM FINANCING ACTIVITIES: 

Payments of long-term debt and capital lease obligations 
           (2,510)

            (1,533)
Proceeds from issuance of long-term debt  
                     -  

             2,914 
Net cash provided (used) by financing activities 
           (2,510)

              1,381 
NET INCREASE (DECREASE) IN CASH 
                    3  

                (80)

CASH AT BEGINNING OF PERIOD 
                   11  

                100 
CASH AT END OF PERIOD 
 $               14  

 $               20 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: 

Cash paid during the period for: Interest 
 $             699  

 $          1,704 
Income Taxes  
 $                  - 

 $                  - 

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

Cagle's, Inc. & Subsidiary   
Notes to Consolidated Condensed Financial Statements  
July 3, 2004       

1. Basis of Presentation 

Interim Period Accounting Policies 
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments which are of a normal and recurring nature necessary to present fairly the consolidated financial position of Cagle's, Inc. and Subsidiary (the "Company") as of July 3, 2004 and April 3, 2004 and the results of their operations for the 13 weeks ended July 3, 2004 and the 13 weeks ended June 28, 2003. Results of operations for the 13 weeks ended July 3, 2004 are not necessarily indicative of results to be expected for the full fiscal year ending April 2, 2005.******