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                      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 December 27, 1997 
 
                                     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 December 27, 1997 
--------------------------------------          ----------------------------- 
Class A Common Stock, $1.00 Par Value	                 5,006,281 
 
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<TABLE> 

PART 1.  FINANCIAL INFORMATION 
 
Cagle's, Inc. And Subsidiary 
Consolidated Balance Sheets 
December 27, 1997 and March 29, 1997
(In Thousands, Except Par Value) 
(12/97=Unaudited) 
<CAPTION>

                                                   12/27/97       03/29/97 
                                                 ------------   ------------- 
<S>                                              <C>            <C>
Assets 
----------------------------------------- 
CURRENT ASSETS 
Cash                                                  $  175          $   94 
Accounts receivable, net of allowance for 
doubtful accounts of $663 and $408 at 
Dec. 27, 1997 and March 29, 1997, 
respectively                                          18,370          18,001 
Inventories                                           32,908          33,466 
Insurance Proceeds Receivable                              0           3,054 
Deferred Income Tax                                        0             114
Other current assets                                     743           2,075 
                                                 ------------    ------------ 
Total current assets                                  52,196          56,804 
                                                 ------------    ------------ 
INVESTMENTS IN AND RECEIVABLES FROM 
UNCONSOLIDATED AFFILIATES                             26,080          19,570 
OTHER ASSETS                                             693             692 
PROPERTY, PLANT, AND EQUIPMENT                        99,604         100,305 
Less accumulated depreciation                        (40,931)        (37,974) 
                                                 ------------    ------------ 
Property, plant, and equipment, net                   58,673          62,331 
                                                 ------------    ------------ 
TOTAL ASSETS                                        $137,642        $139,397 
                                                 ============    ============ 
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES & STOCKHOLDERS' EQUITY                                            
-----------------------------------------                                     
<S>                                              <C>             <C>
CURRENT LIABILITIES                                                          
Current Maturities of Long Term Debt              $    2,794      $    3,325 
Accounts payable                                      12,348          12,460 
Accrued expenses                                      11,040           9,079 
                                                 ------------    ------------ 
Total Current Liabilities                             26,182          24,864 
                                                 ------------    ------------ 
LONG TERM DEBT (net of current maturities)            46,070          49,798 
NONCURRENT DEFERRED INCOME TAXES                      10,930          11,276 
                                                 ------------    ------------ 
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 held for options                         (222)              0
Retained earnings                                     41,730          40,507 
                                                 ------------    ------------ 
Total stockholders' equity                            54,460          53,459 
                                                 ------------    ------------ 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $ 137,642       $ 139,397 
                                                 ============    ============ 
<FN>
The accompanying notes are an integral part of these consolidated financial 
statements. 
</TABLE>
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<TABLE>

Cagle's, Inc., & Subsidiary 
Consolidated Statements of Income 
For the 39 weeks ended December 27, 1997 and December 28, 1996 
(Amounts in thousands, except per share data) 
(unaudited) 
                                        13 wks    13 wks    39 wks    39 wks
                                         ended     ended     ended     ended
                                       12/27/97  12/28/96  12/27/97  12/28/96
                                       --------  --------  --------  --------
<S>                                    <C>       <C>       <C>       <C>
Net Sales                               $85,532   $85,506  $265,986  $261,341
 
Costs and Expenses: 
Cost of Sales                            79,472    80,169   254,463   252,095
Selling and Delivery                      2,617     2,873     8,192     8,110
General and Administrative                1,579     1,575     4,741     4,911
                                        -------  --------  --------  --------
Total costs and expenses                 83,668    84,617   267,396   265,116   
                                        -------  --------  --------  --------
Income (Loss) From Operations            (1,141)      889    (1,410)   (3,775)
 
Other Income(Expense):                                                   
Interest expense                           (828)   (1,157)   (2,713)   (3,637)
Income from unconsolidated 
affiliates and other 
income, net                               2,356     2,761     6,784     6,358
                                       --------  --------  --------  --------
Income (Loss) Before Income Taxes           392     2,493     2,661    (1,054)
 
(Provision) Benefit For Income Taxes       (150)     (948)     (992)      400
                                       --------  --------  --------  --------
Net Income (Loss)                      $    242  $  1,545  $  1,669  $   (654)
                                       ========  ========  ========  ========
Weighted Average Number Of 
Common Shares Outstanding                 5,006     5,006     5,006     5,006
                                       ========  ========  ========  ========   
Net Income (Loss) Per Common Share     $   0.05  $   0.31  $   0.33  $  (0.13)
Dividends Per Common Share                  .03       .03       .09       .09
                                       ========  ========  ========  ========
 
<FN>
The accompanying notes are an integral part of these consolidated  
financial statements. 


</TABLE>


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<TABLE>

Cagle's, Inc & Subsidiary 
Consolidated Statements of Cash Flows 
For the 39 weeks ended December 27, 1997 and December 28, 1996 
(In Thousands) 
(unaudited) 
<CAPTION>
                                                  Dec. 27, 1997   Dec. 28, 1996 
                                                  -------------   ------------- 
<S>                                               <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:                                         
Net Income (Loss)                                  $     1,672    $       (654)
 
Adjustments to reconcile net income to net cash 
provided by operating activities: 
Depreciation and amortization                            5,937           5,559 
(gain)loss on disposal of property, plant and 
equipment                                                 (276)             10 
Changes in investment in and receivables from 
unconsolidated affiliates                               (6,510)         (3,272) 
Changes in assets and liabilities: 
Accounts receivables, net                                 (369)          2,233 
Inventories                                                558          (3,725)
Insurance Proceeds Receivable                            3,054           3,200
Deferred Income Taxes asset                                114               0
Other current assets                                     1,332           1,690
Accounts payable                                          (112)           (743)
Accrued expenses                                         1,961            (929) 
Income taxes payable                                         0            (184) 
Deferred income taxes payable                             (346)           (487)
                                                        -------         ------- 
Total Adjustments                                        5,343           3,352
                                                        -------         ------- 
Net cash provided (uses) by operating activities         7,015           2,698
                                                        -------         ------- 
 
CASH FLOWS FROM INVESTING ACTIVITIES: 
Additions to property, plant, and equipment             (4,826)         (2,250)
(Increase)decrease in other assets                          (9)             90 
Proceeds from the sale of property, plant, and equip.    2,832             114 
                                                        -------         -------
Net cash used in investing activities                   (2,003)         (2,046) 
                                                        -------         ------- 
Cash Flows from financing activities: 
Payments of long-term debt and capital 
lease obligations                                       (4,259)         (5,643)
Proceeds from issuance of long-term debt                     0           6,000 
Dividends Paid                                            (450)           (451)
Repurchase of Common Stock                                (222)              0
                                                        -------         ------- 
Net cash provided (used) by financing activities        (4,931)            (94) 
                                                        -------         ------- 
NET INCREASE(DECREASE) IN CASH                              81             558
CASH AT BEGINNING OF PERIOD                                 94             326 
                                                        -------         ------- 
CASH AT END OF PERIOD                                   $  175          $  884 
                                                        =======         ======= 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: 
Cash paid during the period for: 
Interest                                                $2,966          $3,637 
                                                        =======         ======= 
Income Taxes paid                                       $  967          $    0 
                                                        =======         ======= 
<FN>
The accompanying notes are an integral part of these consolidated financial 
statements. 
</TABLE>


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Cagle's, Inc. & Subsidiary 
Notes to Consolidated Condensed Financial Statements 
December 27, 1997 
(unaudited) 
 
 
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 December 
     27, 1997 and March 29, 1997 and the results of their operations and 
     their cash flows for the 13 weeks and 39 weeks ended December 27, 1997 
     and December 28, 1996.  
 
2.  The results of operations for the 13 weeks ended December 27, 1997 and
    December 28, 1996. are not necessarily indicative of the results expected 
    for the full year. 
 
3.  Inventories consisted of the following:  (In Thousands) 
 
                                   Dec. 27, 1997        March 29, 1997 
 
Finished Product	                       $14,958              $ 12,188 
Field Inventory and Breeders             13,769                16,294 
Feed, Eggs, and Medication                2,675                 3,472 
Supplies	                                 1,506                 1,512 
                                    ----------------     -------------- 
                                        $32,908               $33,466 
 
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 five unconsolidated affiliates
    using the equity method.  The Company's share of earnings and management 
    fees was $1,466,000 and $1,913,000 for the 13 weeks ended December 27,
    1997 and December 28, 1996 and $5,799,000 and $5,460,000 respectively for
    the 39 weeks ended December 27, 1997 and December 28, 1996.

<PAGE>
 


Management's Discussion and Analysis of Financial  
Condition and Results of Operation 
December 27, 1997 
 
 
Financial Condition 
 
Slow movement of export product along with seasonal inventory increases 
resulted in an increase in revolving credit line borrowing, however, total debt
is $4.3 million less than at the beginning of the 39 week period.

The Company's current ratio declined from the March 29, 1997,  level of 2.28 to
1 to 1.99 to 1 at December 27, 1997, however, the debt and total capital ratio
has improved to .47 to 1 from .488 to 1.  The Company's availability under
existing lines of credit was $11,009,000 at December 28, 1996.


Results of Operations 
 
Sales for the 13 weeks ended December 27, 1997, declined by 3.5% as compared to
the 13 weeks ended December 28, 1996, and is attributed to lower prices for 
deboned meat and sharply lower prices for export items.  The quoted market for 
broilers during the quarter averaged 11.6% lower than  a year ago .  In 
addition, the unsettled environment in Asia appreciably slowed movement of 
product slated for that market resulting in heavier than normal inventory 
during the period.  

Sales for the 39 weeks ended December 27, 1997, were 1.8% higher than for the
corresponding period of last year and are the result of 1.8% more production 
volume during the same period.

Gross margins for the 13 weeks ended December 27, 1997, were lower by 2.54% 
(3.7% -vs- 6.24%) due largely to lower selling prices which more than off-set 
feed cost that averaged 8.3% lower than for the same quarter of a year ago.  
Margins for the 39 weeks ended December 27, 1997, were  .8% higher than for the 
39 weeks ended December 28, 1996, due largely to more favorable feed grain cost 
during the period.



Selling, Delivery, and Administrative Expenses

Selling, delivery and administrative expenses were 5.6% and .7% lower 
respectively for the 13 weeks and 39 weeks period ended December 27, 1997, as 
compared to the same period ended December 28, 1996.


Interest Expense

Interest expense for the quarter and 9 months ended December 27, 1997, were 
28.2% and 25.4% lower than the comparable periods ended December 28, 1996, due 
to lower average debt levels and lower interest rates.


Other Income

Other income for the 13 weeks ended December 27, 1997, was 14.7% lower than for 
the same period of a year ago and proceeds resulting from the resolution of a
lawsuit which was included in the year ago numbers.  The 39 weeks' results 
increased 6.7% as compared to the same period of a year ago and is the result
of increased earnings produced by the Company's unconsolidated affiliates.


Income Taxes

The provision for income taxes reflects the Company's tax liability computed
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:  February 6, 1997                      /s/      J. Douglas Cagle 
 
Date:  February 6, 1997                      /s/      Kenneth R. Barkley 
 

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