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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)



|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------

For the quarterly period ended January 20, 2006

OR



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

For the transition period from

Commission file number 0-2396

BRIDGFORD FOODS CORPORATION

(Exact
name of Registrant as specified in its charter)



|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|California                                                     |  | 95-1778176                             
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer identification number)

1308 N. Patt Street, Anaheim, CA 92801

(Address of principal executive offices-Zip code)

714-526-5533

(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 by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):



|                         |  |                    |  |                         
|------------------------ |  | ------------------ |  | ------------------------
|Large accelerated filer ̈ |  | Accelerated Filer ̈ |  | Non-accelerated filer  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ̈No  x

As of March 3, 2006 the registrant had 9,998,000 shares of common
stock outstanding.



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BRIDGFORD FOODS CORPORATION

FORM 10-Q QUARTERLY REPORT

INDEX

References to Bridgford Foods or the Company contained in this Quarterly Report on Form 10-Q refer to Bridgford Foods Corporation.



|                                                                                                                                                                          |  |     
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|                                                                                                                                                                          |  | Page
|Part I. Financial Information                                                                                                                                             |  |     
|                                                                                                                                                                          | 
|Item 1. Financial Statements                                                                                                                                              |  |     
|                                                                                                                                                                          | 
|a. Consolidated Condensed Balance Sheets at January 20, 2006 (unaudited) and October 28, 2005                                                                             |  | 3   
|                                                                                                                                                                          | 
|b. Consolidated Condensed Statements of Operations for the twelve weeks ended January 20, 2006 and January 21, 2005 (unaudited)                                           |  | 4   
|                                                                                                                                                                          | 
|c. Consolidated Condensed Statements of Shareholders Equity and Comprehensive Income (Loss) for the twelve weeks ended January 20, 2006 and January 21, 2005 (unaudited) |  | 4   
|                                                                                                                                                                          | 
|d. Consolidated Condensed Statements of Cash Flows for the twelve weeks ended January 20, 2006 and January 21, 2005 (unaudited)                                           |  | 5   
|                                                                                                                                                                          | 
|e. Notes to Consolidated Condensed Financial Statements (unaudited)                                                                                                       |  | 6   
|                                                                                                                                                                          | 
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations                                                                             |  | 9   
|                                                                                                                                                                          | 
|Item 3. Quantitative and Qualitative Disclosures about Market Risk                                                                                                        |  | 12  
|                                                                                                                                                                          | 
|Item 4. Controls and Procedures                                                                                                                                           |  | 12  
|                                                                                                                                                                          | 
|Part II. Other Information                                                                                                                                                |  |     
|                                                                                                                                                                          | 
|Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                       |  | 14  
|                                                                                                                                                                          | 
|Item 6. Exhibits                                                                                                                                                          |  | 14  
|                                                                                                                                                                          | 
|Signatures                                                                                                                                                                |  | 15  

Items 1 and 3-5 of Part II. have been omitted because they are not applicable with respect to the current
reporting period.



2



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Part I. Financial Information

Item 1. a.

BRIDGFORD FOODS CORPORATION

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands, except per share amounts)



|                                                                                                                                                        |  |                |        |   |                |   |        |  
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | ------ | - | -------------- | - | ------ | -
|                                                                                                                                                        |  | January 202006 |        |   | October 282005 |  
|                                                                                                                                                        |  | (Unaudited)    |        |   |                |  
|ASSETS                                                                                                                                                  |  |                |        |   |                |   |        |  
|Current assets:                                                                                                                                         |  |                |        |   |                |   |        |  
|Cash and cash equivalents                                                                                                                               |  | $              | 12,472 |   |                | $ | 10,355 |  
|Accounts receivable, less allowance for doubtful accounts of $541 and $468, respectively, and promotional allowances of $1,776 and $2,092,
respectively |  |                | 9,808  |   |                |   | 9,508  |  
|Inventories (Note 2)                                                                                                                                    |  |                | 16,900 |   |                |   | 21,324 |  
|Prepaid expenses and other current assets                                                                                                               |  |                | 3,146  |   |                |   | 2,551  |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|Total current assets                                                                                                                                    |  |                | 42,326 |   |                |   | 43,738 |  
|Property, plant and equipment, less accumulated depreciation of $51,622 and $50,731                                                                     |  |                | 14,147 |   |                |   | 14,519 |  
|Other non-current assets                                                                                                                                |  |                | 14,773 |   |                |   | 14,706 |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|                                                                                                                                                        |  | $              | 71,246 |   |                | $ | 72,963 |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                                                    |  |                |        |   |                |   |        |  
|Current liabilities:                                                                                                                                    |  |                |        |   |                |   |        |  
|Accounts payable                                                                                                                                        |  | $              | 2,406  |   |                | $ | 3,806  |  
|Accrued payroll, advertising and other expenses                                                                                                         |  |                | 7,845  |   |                |   | 8,035  |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|Total current liabilities                                                                                                                               |  |                | 10,251 |   |                |   | 11,841 |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|Non-current liabilities                                                                                                                                 |  |                | 12,768 |   |                |   | 12,860 |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|Commitments (Note 6)                                                                                                                                    |  |                |        |   |                |   |        |  
|Shareholders equity:                                                                                                                                   |  |                |        |   |                |   |        |  
|Preferred stock, without par value Authorized - 1,000 shares Issued and outstanding - none                                                              |  |                |       |   |                |   |       |  
|Common stock, $1.00 par value Authorized - 20,000 shares Issued and outstanding - 9,968 and 9,986 shares                                                |  |                | 10,025 |   |                |   | 10,043 |  
|Capital in excess of par value                                                                                                                          |  |                | 14,283 |   |                |   | 14,394 |  
|Retained earnings                                                                                                                                       |  |                | 25,752 |   |                |   | 25,889 |  
|Accumulated other comprehensive loss                                                                                                                    |  |                | (1,833 | ) |                |   | (2,064 | )
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|                                                                                                                                                        |  |                | 48,227 |   |                |   | 48,262 |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  
|                                                                                                                                                        |  | $              | 71,246 |   |                | $ | 72,963 |  
|                                                                                                                                                        |  |                |        |   |                |   |        |  

See accompanying notes to consolidated condensed financial statements.



3



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Item 1. b.

BRIDGFORD FOODS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)



|                                              |  |                                          |        |   |                 |   |        |  
|--------------------------------------------- |  | ---------------------------------------- | ------ | - | --------------- | - | ------ | -
|                                              |  | (in thousands, except per share amounts) |       
|                                              |  | 12 weeks ended                           |        |   | 12 weeks ended  |  
|                                              |  | January 20 2006                          |        |   | January 21 2005 |  
|Net sales                                     |  | $                                        | 34,575 |   |                 | $ | 33,591 |  
|                                              |  |                                          |        |   |                 |   |        |  
|Cost of products sold, excluding depreciation |  |                                          | 23,553 |   |                 |   | 22,571 |  
|Selling, general and administrative expenses  |  |                                          | 10,370 |   |                 |   | 10,308 |  
|Depreciation                                  |  |                                          | 892    |   |                 |   | 1,028  |  
|                                              |  |                                          |        |   |                 |   |        |  
|                                              |  |                                          | 34,815 |   |                 |   | 33,907 |  
|                                              |  |                                          |        |   |                 |   |        |  
|Loss before taxes                             |  |                                          | (240   | ) |                 |   | (316   | )
|Income tax benefit                            |  |                                          | (103   | ) |                 |   | (120   | )
|                                              |  |                                          |        |   |                 |   |        |  
|Net loss                                      |  |                                          | ($137  | ) |                 |   | ($196  | )
|                                              |  |                                          |        |   |                 |   |        |  
|Basic and diluted loss per share              |  |                                          | ($.01  | ) |                 |   | ($.02  | )
|                                              |  |                                          |        |   |                 |   |        |  
|Basic and diluted shares computed             |  |                                          | 9,973  |   |                 |   | 10,000 |  
|                                              |  |                                          |        |   |                 |   |        |  

Item 1. c.

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(in thousands, except per share amounts)



|                                   |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  |         |   |  |   |        |  
|---------------------------------- |  | ------------ | - |  | ---------------------- | ------ | - | ---------------- | - | ------ | ------------------------------------------ |  | - | ------ | - |  | ------- | - |  | - | ------ | -
|                                   |  | Common Stock |   |  | Capitalin excessof par |        |   | Retainedearnings |   |        | Accumulatedothercomprehensiveincome (loss) |  |   | Total  |  
|                                   |  | Shares       |   |  | Amount                 |        |   |                  |   |       
|October 28, 2005                   |  | 9,986        |   |  | $                      | 10,043 |   |                  | $ | 14,394 |                                            |  | $ | 25,889 |   |  | ($2,064 | ) |  | $ | 48,262 |  
|Shares repurchased                 |  | (18          | ) |  |                        | (18    | ) |                  |   | (111   | )                                          |  |   |        |   |  |         |   |  |   | (129   | )
|Cash dividends ($.00 per share)    |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  |         |   |  |   |       |  
|Net loss                           |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   | (137   | ) |  |         |   |  |   | (137   | )
|Other comprehensive income (loss): |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  |         |   |  |   |        |  
|Unrealized gain on investment      |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  | 11      |   |  |   | 11     |  
|Minimum pension liability          |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  | 220     |   |  |   | 220    |  
|                                   |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  |         |   |  |   |        |  
|Comprehensive loss                 |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  |         |   |  |   | 94     |  
|                                   |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  |         |   |  |   |        |  
|January 20, 2006                   |  | 9,968        |   |  | $                      | 10,025 |   |                  | $ | 14,283 |                                            |  | $ | 25,752 |   |  | ($1,833 | ) |  | $ | 48,227 |  
|                                   |  |              |   |  |                        |        |   |                  |   |        |                                            |  |   |        |   |  |         |   |  |   |        |  

See accompanying notes to consolidated condensed financial statements.



4



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Item 1. d.

BRIDGFORD FOODS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                     |  |                 |        |   |                |   |        |  
|---------------------------------------------------- |  | --------------- | ------ | - | -------------- | - | ------ | -
|                                                     |  | 12 weeks ended  |        |   | 12 weeks ended |  
|                                                     |  | January 20 2006 |        |   | January 212005 |  
|                                                     |  | (in thousands)  |        |   | (in thousands) |  
|Cash flows from operating activities:                |  |                 |        |   |                |   |        |  
|Net loss                                             |  |                 | ($137  | ) |                |   | ($196  | )
|Income charges not affecting cash:                   |  |                 |        |   |                |   |        |  
|Depreciation                                         |  |                 | 892    |   |                |   | 1,028  |  
|Recovery on losses on accounts receivable            |  |                 | (274   | ) |                |   | (117   | )
|Effect on cash of changes in assets and liabilities: |  |                 |        |   |                |   |        |  
|Accounts receivable, net                             |  |                 | (26    | ) |                |   | 1,370  |  
|Inventories                                          |  |                 | 4,424  |   |                |   | 3,046  |  
|Prepaid expenses and other current assets            |  |                 | (585   | ) |                |   | (214   | )
|Other non-current assets                             |  |                 | (211   | ) |                |   | (97    | )
|Accounts payable                                     |  |                 | (1,400 | ) |                |   | 200    |  
|Accrued payroll, advertising and other expenses      |  |                 | (190   | ) |                |   | (1,393 | )
|Income taxes payable                                 |  |                 | 0      |   |                |   | (913   | )
|Non-current liabilities                              |  |                 | 272    |   |                |   | 170    |  
|                                                     |  |                 |        |   |                |   |        |  
|Net cash provided by operating activities            |  |                 | 2,765  |   |                |   | 2,884  |  
|                                                     |  |                 |        |   |                |   |        |  
|Cash used in investing activities:                   |  |                 |        |   |                |   |        |  
|Additions to property, plant and equipment           |  |                 | (519   | ) |                |   | (341   | )
|                                                     |  |                 |        |   |                |   |        |  
|Cash used in financing activities:                   |  |                 |        |   |                |   |        |  
|Shares repurchased                                   |  |                 | (129   | ) |                |   | (21    | )
|                                                     |  |                 |        |   |                |   |        |  
|Net cash used in financing activities                |  |                 | (129   | ) |                |   | (21    | )
|                                                     |  |                 |        |   |                |   |        |  
|Net increase in cash and cash equivalents            |  |                 | 2,117  |   |                |   | 2,522  |  
|Cash and cash equivalents at beginning of period     |  |                 | 10,355 |   |                |   | 7,972  |  
|                                                     |  |                 |        |   |                |   |        |  
|Cash and cash equivalents at end of period           |  | $               | 12,472 |   |                | $ | 10,494 |  
|                                                     |  |                 |        |   |                |   |        |  
|Cash paid for income taxes                           |  | $               | 0      |   |                | $ | 684    |  
|                                                     |  |                 |        |   |                |   |        |  

See accompanying notes to consolidated condensed financial statements.



5



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Item 1. e.

BRIDGFORD FOODS CORPORATION

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except share and per share amounts)

Note 1 - The Company and Summary of Significant Accounting Policies:

The unaudited consolidated condensed financial statements of Bridgford Foods Corporation (the Company) for the twelve weeks ended
January 20, 2006 and January 21, 2005 have been prepared in conformity with the accounting principles described in the Company's Annual Report on Form 10-K for the fiscal year ended October 28, 2005 (the Annual Report) and
include all adjustments considered necessary by management for a fair statement of the interim periods. Such adjustments consist only of normal recurring items. This report should be read in conjunction with the Annual Report. Due to seasonality and
other factors, interim results are not necessarily indicative of the results to be expected for the full year.

Note 2
- Inventories:

Inventories are comprised as follows at the respective periods:



|                               |  |                |        |                |   |       
|------------------------------ |  | -------------- | ------ | -------------- | - | ------
|                               |  | January 202006 |        | October 282005
|Meat, ingredients and supplies |  | $              | 6,435  |                | $ | 6,433 
|Work in progress               |  |                | 983    |                |   | 2,293 
|Finished goods                 |  |                | 9,482  |                |   | 12,598
|                               |  |                |        |                |   |       
|                               |  | $              | 16,900 |                | $ | 21,324
|                               |  |                |        |                |   |       

In November 2004, the FASB issued Statement of Financial Accounting Standards No. 151,
Inventory Costs. The Statement requires abnormal amounts of inventory costs related to amounts of idle freight, handling costs and spoilage be recognized as current period expenses. The standard is effective for fiscal years beginning
after June 15, 2005 with early application permitted. The Company's policy has always been to handle inventory costs in a manner consistent with the provisions of this Statement, and, therefore, had no impact on adoption.

Note 3 - Basic and diluted earnings per share:

The Company had 250,000 employee stock options outstanding during the twelve week periods ended January 20, 2006 and January 21, 2005. The effect of the employee stock options outstanding for the twelve
weeks ended January 20, 2006 and January 21, 2005 was not included in the calculation of diluted shares and diluted earnings per share as to do so would be anti-dilutive.



6



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Note 4 - Retirement and Other Benefit Plans:

The Company has noncontributory-trusteed defined benefit retirement plans for sales, administrative, supervisory and certain other employees. The benefits
under these plans are primarily based on years of service and compensation levels. The Company's funding policy is to contribute annually the maximum amount deductible for federal income tax purposes, without regard to the plans' unfunded current
liability. The measurement date for the plans is the Company's fiscal year end.

Net pension cost consisted of the following:



|                                                |  |                |      |   |                |   |      |  
|----------------------------------------------- |  | -------------- | ---- | - | -------------- | - | ---- | -
|                                                |  | 12 weeks ended |      |   | 12 weeks ended |  
|                                                |  | January 202006 |      |   | January 212005 |  
|Service cost                                    |  | $              | 398  |   |                | $ | 387  |  
|Interest cost                                   |  |                | 440  |   |                |   | 425  |  
|Expected return on plan assets                  |  |                | (353 | ) |                |   | (323 | )
|Amortization of net loss from earlier periods   |  |                | 60   |   |                |   | 99   |  
|Amortization of unrecognized prior service cost |  |                | 9    |   |                |   | 9    |  
|                                                |  |                |      |   |                |   |      |  
|Net pension cost                                |  | $              | 554  |   |                | $ | 597  |  
|                                                |  |                |      |   |                |   |      |  

The Company intends to contribute $1,800 to the plans during July of 2006.

Note 5 - Stock-Based Compensation:

In December 2004, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 123R, Share-Based Payment. SFAS No. 123R requires public companies to measure and recognize
compensation expense for all share-based payments to employees, including grants of employee stock options, in the financial statements based on the fair value at the date of the grant. The Statement also clarifies and expands SFAS
No. 123s guidance in several areas, including measuring fair value, classifying an award as equity or as a liability, and attributing compensation cost to reporting periods. SFAS No. 123R became effective for the Company's fiscal
year ending November 3, 2006. The Company has not issued, awarded, granted or entered into any stock -based payment agreements since April 29, 1999. The prospective adoption of SFAS No. 123R did not have any impact on the Company's
financial condition or results of operations for the first twelve weeks ended January 20, 2006.

Prior to adoption of SFAS
No. 123R, the Company adopted SFAS No. 123 Accounting for Stock-Based Compensation which allowed the Company to apply the provisions of Accounting Principles Board (APB Opinion No. 25, Accounting for
Stock Issued to Employees, and related interpretations in accounting for stock-based compensation and, therefore, no compensation expense was recognized for its fixed stock option plans as options are generally granted at fair market value
based upon the closing price on the date immediately preceding the grant date. On December 31, 2002 the FASB issued SFAS No. 148, Accounting for Stock Based Compensation- Transition and Disclosure, which amended SFAS
No. 123. SFAS No. 148 requires more prominent and frequent disclosures about the effects of stock-based compensation. Accordingly, if compensation expense for the Company's stock options had been recognized, based upon the fair value of
awards granted, there would have been no impact on the Company's net income and earnings per share, for the first twelve weeks ending January 21, 2005.

No options were granted during the first twelve weeks of the fiscal year ending November 3, 2006 and during the first twelve weeks of the fiscal year ended October 28, 2005.

Note 6 - Commitments:

The Company leases certain transportation and computer equipment under operating leases. The terms of the transportation leases provide for annual renewal options and contingent rental payments based upon mileage and adjustments of rental
payments based on the Consumer Price Index. No material changes have been made to these contracts during the first twelve weeks of fiscal 2006.



7



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Note 7 - Segment Information:

The Company has two reportable operating segments, Frozen Food Products (the processing and distribution of frozen products) and Refrigerated and Snack
Food Products (the processing and distribution of refrigerated meat and other convenience foods).

The Company evaluates each segment's
performance based on revenues and operating income. Selling, general and administrative expenses include corporate accounting, information systems, human resource management and marketing, which are managed at the corporate level. These activities
are allocated to each operating segment based on revenues and/or actual usage.

The following segment information is presented for the
twelve week periods ended January 20, 2006 and January 21, 2005.



|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|--------------------------------------------- |  | ------------------ | ------ | --------------------------------- | - | ------ | ----- |  | - | ----------- | - | ------ | - | --- |  | - | ------ | -
|Twelve Weeks Ended January 20, 2006           |  | FrozenFoodProducts |        | Refrigeratedand SnackFoodProducts |   |        | Other |  |   | Elimination |   | Totals |  
|Sales                                         |  | $                  | 12,104 |                                   | $ | 22,471 |       |  | $ |            |   |        | $ |    |  | $ | 34,575 |  
|Intersegment sales                            |  |                    |       |                                   |   | 717    |       |  |   |            |   |        |   | 717 |  |   |       |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Net sales                                     |  |                    | 12,104 |                                   |   | 23,188 |       |  |   |            |   |        |   | 717 |  |   | 34,575 |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Cost of products sold, excluding depreciation |  |                    | 7,630  |                                   |   | 16,640 |       |  |   |            |   |        |   | 717 |  |   | 23,553 |  
|Selling, general and administrative expenses  |  |                    | 3,521  |                                   |   | 6,849  |       |  |   |            |   |        |   |    |  |   | 10,370 |  
|Depreciation                                  |  |                    | 290    |                                   |   | 503    |       |  |   | 99          |   |        |   |    |  |   | 892    |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|                                              |  |                    | 11,441 |                                   |   | 23,992 |       |  |   | 99          |   |        |   | 717 |  |   | 34,815 |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Income (loss) before taxes                    |  |                    | 663    |                                   |   | (804   | )     |  |   | (99         | ) |        |   |    |  |   | (240   | )
|Provision (benefit) for taxes on income       |  |                    | 236    |                                   |   | (339   | )     |  |   |            |   |        |   |    |  |   | (103   | )
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Net income (loss)                             |  | $                  | 427    |                                   | $ | (465   | )     |  | $ | (99         | ) |        | $ |    |  | $ | (137   | )
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Total assets                                  |  | $                  | 11,405 |                                   | $ | 29,406 |       |  | $ | 30,435      |   |        | $ |    |  | $ | 71,246 |  
|Additions to property, plant and equipment    |  | $                  | 70     |                                   | $ | 428    |       |  | $ | 21          |   |        | $ |    |  | $ | 519    |  
|                                              |  |                    |        |                                   |  
|Twelve Weeks Ended January 21, 2005           |  | FrozenFoodProducts |        | Refrigeratedand SnackFoodProducts |   |        | Other |  |   | Elimination |   | Totals |  
|Sales                                         |  | $                  | 11,014 |                                   | $ | 22,577 |       |  | $ |            |   |        | $ |    |  | $ | 33,591 |  
|Intersegment sales                            |  |                    |       |                                   |   | 501    |       |  |   |            |   |        |   | 501 |  |   |       |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Net sales                                     |  |                    | 11,014 |                                   |   | 23,078 |       |  |   |            |   |        |   | 501 |  |   | 33,591 |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Cost of products sold, excluding depreciation |  |                    | 6,373  |                                   |   | 16,699 |       |  |   |            |   |        |   | 501 |  |   | 22,571 |  
|Selling, general and administrative expenses  |  |                    | 3,034  |                                   |   | 7,274  |       |  |   |            |   |        |   |    |  |   | 10,308 |  
|Depreciation                                  |  |                    | 399    |                                   |   | 527    |       |  |   | 102         |   |        |   |    |  |   | 1,028  |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|                                              |  |                    | 9,806  |                                   |   | 24,500 |       |  |   | 102         |   |        |   | 501 |  |   | 33,907 |  
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Income (loss) before taxes                    |  |                    | 1,208  |                                   |   | (1,422 | )     |  |   | (102        | ) |        |   |    |  |   | (316   | )
|Provision (benefit) for taxes on income       |  |                    | 447    |                                   |   | (567   | )     |  |   |            |   |        |   |    |  |   | (120   | )
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Net income (loss)                             |  | $                  | 761    |                                   | $ | (855   | )     |  | $ | (102        | ) |        | $ |    |  | $ | (196   | )
|                                              |  |                    |        |                                   |   |        |       |  |   |             |   |        |   |     |  |   |        |  
|Total assets                                  |  | $                  | 11,551 |                                   | $ | 32,920 |       |  | $ | 27,927      |   |        | $ |    |  | $ | 72,398 |  
|Additions to property, plant and equipment    |  | $                  | 101    |                                   | $ | 186    |       |  | $ | 54          |   |        | $ |    |  | $ | 341    |  

Note 8 - Subsequent Events:

On February 22, 2006 the Company sold 5,028 shares of common stock of Sears Holdings Corporation received as the result of the bankruptcy of a
significant customer. This transaction resulted in a pre-tax gain of $106,000 and a reduction in other comprehensive income of $67,000.



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Item 2.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Form 10-Q under Item 2 Managements
Discussion and Analysis of Financial Condition and Results of Operations and elsewhere constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 (the
Exchange Act). In addition, the Company may from time to time make oral forward-looking statements. Words such as may, will, should, could, expect, plan,
anticipate, believe, estimate, predict, potential or contribute or similar words are intended to identify forward-looking statements, although not all forward-looking statements
contain these words. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following: general economic and business conditions; the impact of competitive products and pricing; success of
operating initiatives; development and operating costs; advertising and promotional efforts; adverse publicity; acceptance of new product offerings; consumer trial and frequency; changes in business strategy or development plans; availability, terms
and deployment of capital; availability of qualified personnel; commodity, labor, and employee benefit costs; changes in, or failure to comply with, government regulations; weather conditions; construction schedules; and other factors referenced in
this Form 10-Q and in Bridgford Foods Annual Report on Form 10-K for the fiscal year ended October 28, 2005. Because of these and other factors that may affect the Companys operating results, past financial performance should not be
considered an indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods. The Company expressly disclaims any intent or obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.

Managements Discussion and Analysis of Financial Condition and Results of Operations

Critical Accounting Policies
and Risk Factors

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make
certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the respective
reporting periods. Actual results could differ from those estimates. Amounts estimated related to liabilities for pension costs, self-insured workers compensation and employee healthcare are especially subject to inherent uncertainties and
these estimated liabilities may ultimately settle at amounts not originally estimated. An actuary updates the pension and post-retirement healthcare data on a quarterly basis. Management believes its current estimates are reasonable and based on the
best information available at the time.

The Companys credit risk is diversified across a broad range of customers and geographic regions. Losses due
to credit risk have recently been immaterial although losses in fiscal year 2002 were significant. The Company recorded the final payment recovery related to its fiscal year 2002 loss in its first quarter of 2006, receiving 2,939 shares of stock of
Sears Holdings Corporation valued at $344,000. The provision for doubtful accounts receivable is based on historical trends and current collectibility risk. The Company has significant amounts receivable with a few large, well known customers which,
although historically secure, could be subject to material risk should these customers operations suddenly deteriorate. The Company monitors these customers closely to minimize the risk of loss. Wal-Mart® comprised 12.2% of revenues and 17.7% of accounts receivable at the end of the first
quarter of fiscal year 2006. Wal-Mart® comprised
13.8% of revenues and 18.0% of accounts receivable in the first quarter of fiscal year 2005.

Revenues are recognized upon passage of title to the customer
upon product pick-up, shipment or delivery to customers as determined by applicable contracts. Products are delivered to customers through the Companys own fleet or through a Company-owned direct store delivery system.

The Company records the cash surrender or contract value for life insurance policies as an adjustment of premiums paid in determining the expense or income to be
recognized under the contract for the period.



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The Companys operating results are heavily dependent upon the prices paid for raw materials. Other significant
factors that influence operating results include transportation and energy costs. The marketing of the Companys value-added products does not lend itself to instantaneous changes in selling prices. Changes in selling prices are relatively
infrequent and do not compare with the volatility of commodity markets, transportation costs and energy prices.

The above listing is not intended to be a
comprehensive list of all the Companys accounting policies. In many cases, the accounting treatment of a particular transaction is specifically dictated by accounting principles generally accepted in the United States, with no need for
managements judgment in their application. There are also areas in which managements judgment in selecting any available alternative would not produce a materially different result.

Results of Operations for the Twelve Weeks ended January 20, 2006 and Twelve Weeks ended January 21, 2005.

Net Sales

Net sales increased by $984,000 (2.9%) to
$34,575,000 in the first twelve weeks of the 2006 fiscal year compared to the same twelve-week period last year. The primary reason for the increase was higher unit selling prices between comparative quarters. Average unit selling prices were
approximately 3.5% higher than the comparative period in the prior fiscal year. Lower unit volume partially offset the higher unit prices obtained.

Compared to the prior sixteen-week period ended October 28, 2005 (not shown), average weekly sales increased $264,000 (10.1%). The increase primarily relates to higher unit sales volume during the first twelve weeks of the 2006 fiscal
year compared to the prior fiscal year. Average unit selling prices were also higher than in the prior sixteen-week period contributing to the sales increase.

Cost of Products Sold

Cost of products sold increased by $982,000 (4.4%) to $23,553,000 in the first twelve weeks of the 2006
fiscal year compared to the same twelve-week period in fiscal 2005. The increase in cost of products sold is primarily related to the sales increase in the first twelve weeks of the 2006 fiscal year. The gross margin decreased slightly on a
comparative basis due primarily to lower facility utilization, higher freight costs and exceptionally high utility costs. Facility utilization declined as a result of a planned reduction in field inventories in the first twelve weeks of the 2006
fiscal year. Flour commodity costs remained essentially flat during the first twelve weeks of the 2006 fiscal year when evaluated against the comparison period while pork commodities declined. The decline in pork commodities was insufficient to
overcome the adverse factors noted above.

Compared to the prior sixteen-week period ended October 28, 2005 (not shown), the average weekly cost of
products sold increased $226,000 (13.0%) for the first twelve weeks of fiscal year 2006. This increase is consistent with higher average sales volume and lower facility utilization, higher freight costs and exceptionally high utility costs
experienced in the first twelve weeks of fiscal year 2006. These increases were partially offset by a slight reduction in meat commodity costs in the first twelve weeks of fiscal year 2006.

Selling, General and Administrative Expenses

Selling, general
and administrative expenses increased by $62,000 (0.6%) to $10,370,000 in the first twelve weeks of fiscal year 2006 compared to the same twelve-week period in the prior fiscal year. The rate of increase in this category did not correspond to the
sales increase. Costs related to fuel and vehicle repairs rose at a higher rate as a percentage of sales than the prior fiscal year causing the slight increase. Favorable trends in bad debt expenses, gains related to life insurance policies and
higher investment income partially offset these increases.

Compared to the prior sixteen-week period ended October 28, 2005 (not shown), average
weekly selling, general and administrative expenses decreased by $4,000 (0.5%). The decrease in selling, general and administrative expenses as a percentage of sales primarily relates to a significant recovery related to a bad debt previously
written off and continued favorable trends in bad debt expenses in general. The value of life insurance policies compared to the prior sixteen-week period increased significantly which also contributed to lower levels of expense. These positive
trends were mitigated by significant increases in fuel and vehicle repair costs experienced during the first twelve weeks of fiscal 2006 compared to the prior period.



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Depreciation Expense and Income Taxes

Depreciation expense decreased by $136,000 (13.2%) to $892,000 in the first twelve weeks of the 2006 fiscal year compared to the same twelve-week period in fiscal year 2005. The decrease in depreciation expense
was due to lower capital expenditures in recent periods and assets becoming fully depreciated in the 2006 fiscal year.

Compared to the prior sixteen-week
period ended October 28, 2005 (not shown), average weekly depreciation expense decreased $23,000 (23.5%) for the first twelve weeks of fiscal 2006 due to lower capital expenditures in recent periods and assets becoming fully depreciated in
the 2006 fiscal year.

The effective income tax rate was 42.9% in the first twelve weeks of fiscal 2006 as compared to 38.0% in the prior fiscal year and
64.4% for the prior sixteen-week period. The change in the effective income tax rate relates to significant non-taxable gains on life insurance policies between comparison periods and the reduction of tax reserves in the previous sixteen-week
period. The Company released a portion of tax reserves for state tax estimates during the last sixteen weeks of fiscal 2005 as the amount was no longer probable or reasonably estimated in accordance with Statement of Financial Accounting Standards
(SFAS No. 5), Accounting for Contingencies.

Net Loss

Net loss in the twelve weeks ended January 20, 2006 was significantly affected by a non-taxable gain on life insurance policies in the amount of $210,000. Gains and losses on life insurance policies are dependent
upon the performance of the underlying equities and future results may produce losses of equal magnitude. Taxable investment income also increased on a comparative basis during the first twelve weeks of fiscal 2006 in the amount of $49,000 due to
higher cash balances and an increase in short-term interest rates. After considering the effect of these transactions, the Companys results were as follows:



|                                                          |  |                                 |           |   |                                 |   |           |  
|--------------------------------------------------------- |  | ------------------------------- | --------- | - | ------------------------------- | - | --------- | -
|                                                          |  | 12 Weeks Ended January 20, 2006 |           |   | 12 Weeks Ended January 21, 2005 |  
|Net loss before life insurance gain and investment income |  |                                 | ($522,000 | ) |                                 |   | ($436,000 | )
|Life insurance gain and investment income                 |  | $                               | 282,000   |   |                                 | $ | 120,000   |  
|                                                          |  |                                 |           |   |                                 |   |           |  
|Loss before taxes                                         |  |                                 | ($240,000 | ) |                                 |   | ($316,000 | )
|Income tax benefit                                        |  |                                 | ($103,000 | ) |                                 |   | ($120,000 | )
|                                                          |  |                                 |           |   |                                 |   |           |  
|Net loss                                                  |  |                                 | ($137,000 | ) |                                 |   | ($196,000 | )

The Company recorded a significant recovery related to a bad debt previously written off which contributed to a
net favorable reduction in the allowance for doubtful accounts of $274,000 in the first twelve weeks of fiscal year 2006. Favorable trends in accounts receivable exposure in the first twelve weeks of fiscal year 2005 resulted in a favorable
reduction of the allowance for doubtful accounts of $117,000. These financial transactions should not be considered an indicator of future performance and investors should not use these transactions to anticipate results or trends in future periods.

Liquidity and Capital Resources

Net cash from
operating activities was $2,765,000 for the first twelve weeks of the 2006 fiscal year. The operating loss of $137,000 was offset principally by reductions in inventory. The substantial reduction in inventory in the first twelve weeks is consistent
with normal seasonal trends and a planned reduction in field inventories. The Company utilized cash flow for additions to property, plant and equipment and share repurchases. The net effect of these events resulted in a cash and cash equivalents
increase of $2,117,000 (20.4%) to $12,472,000. The additions to property, plant and equipment reflect the Companys continued investment in processing, transportation and information technology equipment.



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No cash dividends were paid during the first twelve weeks of the 2006 fiscal year as the Board of Directors suspended the
quarterly cash dividend at its May 2004 meeting in recognition of lower profitability levels in recent quarters as was the policy during the prior year. The Company also repurchased 17,760 shares of its common stock for $129,000 during the first
twelve weeks of fiscal year 2006. The average price per share of such repurchased shares was $7.26.

The Company remained free of interest bearing debt
during the first twelve weeks of 2006. The Companys revolving line of credit with Bank of America expires April 30, 2006 and provides for borrowings up to $2,000,000. The Company has not borrowed under this line for more than nineteen
consecutive years.

The impact of inflation on the Companys financial position and results of operations has not been significant. Management is of
the opinion that the Companys financial position and its capital resources are sufficient to provide for its near term operating needs and capital expenditures.

Off-Balance Sheet Arrangements

The Company is not engaged in any off-balance sheet arrangements within
the meaning of Item 303(a)(4)(ii) of Regulation S-K.

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

The Company does not have significant foreign currency exposure at January 20, 2006. The Companys financial instruments generally consist of cash and cash
equivalents and life insurance policies at January 20, 2006. The Company also has an investment in shares of stock of Sears Holdings Corporation as a result of the bankruptcy of a significant customer. Unrealized gains and losses from this
investment are recorded as other comprehensive income (loss) in the accompanying statements. Realized gains and losses upon the sale of this investment are recognized in the consolidated condensed statements of operations. These shares
were sold on February 22, 2006 for $606,000. The Company will recognize a gain on this sale in the amount of $106,000 in the consolidated condensed statements of operations in the second twelve week period of fiscal year 2006 which ends
April 14, 2006. The carrying value of the Companys financial instruments approximated their fair market values based on current market prices and rates. It is not the Companys policy to enter into derivative financial instruments.

The Company purchases bulk flour under short-term fixed price contracts during the normal course of business. Under these arrangements, the Company is
obligated to purchase specific quantities at fixed prices, within the specified contract period. These contracts provide for automatic price increases if agreed quantities are not purchased within the specified contract period. No significant
contracts remained unfulfilled at January 20, 2006.

Item 4.

Controls and Procedures

Management of the Company, with the participation and under the supervision of the Companys Chairman and Chief Financial Officer, has evaluated the effectiveness of the Companys disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this quarterly report. Based on this evaluation the Chairman and Chief Financial Officer have concluded that the Companys disclosure
controls and procedures are effective as of the end of the period covered by this periodic SEC filing to provide reasonable assurance that material information required to be disclosed by the Company in the reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commissions rules and forms. There has been no change in the Companys internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting.

The Companys management, including its Chairman and Chief Financial Officer, does not expect that the Companys disclosure controls and internal controls
will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the



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objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits
of controls must be considered relative to their costs. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have
been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of
some persons, by collusion of two or more people, or by management override of the control.

The design of any system of controls is also based in part
upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, a control may become inadequate because of
changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Section 404 Sarbanes-Oxley Act of 2002

The requirements of
Section 404 of the Sarbanes-Oxley Act of 2002 will be effective for the Companys fiscal year ending November 2, 2007. In order to comply with the Act, the Company is beginning a comprehensive effort, which includes the documentation
and testing of its internal controls. As a result, the Company expects to incur substantial additional expenses and diversion of managements time. During the course of these activities, the Company may identify certain internal control issues
which management believes should be improved. These improvements, if necessary, will likely include further formalization of policies and procedures, improved segregation of duties, additional information technology system controls and additional
monitoring controls. Although management does not believe that any of these matters will result in material weaknesses being identified in the Companys internal controls as defined by the Public Company Accounting Oversight Board, no
assurances can be given regarding the outcome of these efforts. Additionally, control weaknesses may not be identified in a timely enough manner to allow remediation prior to the issuance of the auditors report on internal controls over
financial reporting. Any failure to adequately comply could result in sanctions or investigations by regulatory authorities, which could harm the Companys business or investors confidence in the Company.



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Part II. Other Information

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information regarding
repurchases by the Company of its common stock, for each of the three four-week periods included in the interim twelve-week period ended January 20, 2006.

ISSUER PURCHASES OF EQUITY SECURITIES



|                                      |  |                                |  |                             |      |                                                                              |        |                                                                             |        
|------------------------------------- |  | ------------------------------ |  | --------------------------- | ---- | ---------------------------------------------------------------------------- | ------ | --------------------------------------------------------------------------- | -------
|Period (1)                            |  | Total Numberof SharesPurchased |  | Average PricePaid Per Share |      | TotalNumber ofSharesPurchasedas Part ofPubliclyAnnouncedPlans
orPrograms (2) |        | MaximumNumber ofShares thatMay Yet BePurchasedUnder thePlans
orPrograms (2)
|October 29, 2005  November 25, 2005  |  | 11,094                         |  | $                           | 7.39 |                                                                              | 11,094 |                                                                             | 604,319
|November 26, 2005  December 23, 2005 |  | 5,361                          |  | $                           | 6.90 |                                                                              | 5,361  |                                                                             | 598,653
|December 24, 2005  January 20, 2006  |  | 1,305                          |  | $                           | 6.90 |                                                                              | 1,305  |                                                                             | 597,653
|                                      |  |                                |  |                             |      |                                                                              |        |                                                                             |        
|Total                                 |  | 17,760                         |  | $                           | 7.26 |                                                                              | 17,760 |                                                                             |        
|                                      |  |                                |  |                             |      |                                                                              |        |                                                                             |        



|(1) | Period information is presented by reference to the Companys fiscal period ends during the first quarter of fiscal 2006.
|--- | -------------------------------------------------------------------------------------------------------------------------



|(2) | All repurchases reflected in the foregoing table were made on the open market. The Companys stock repurchase program was approved by the Board of Directors in
November 1999 (1,000,000 shares authorized, disclosed in a Form 10-K filed on January 26, 2000) and was expanded in June 2005 (500,000 additional shares authorized, disclosed in a press release and Form 8-K filed on June 17, 2005). Under
the stock repurchase program, the Company is authorized, at the discretion of management and the Board of Directors, to purchase up to an aggregate of 1,500,000 shares of the Companys common stock on the open market.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Item 6.

Exhibits



|            |  |                                                                                                                                      
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                          
|31.1        |  | Certification of Chairman (Principal Executive Officer), as required by Section 302 of the Sarbanes-Oxley Act of 2002.               
|            | 
|31.2        |  | Certification of Chief Financial Officer (Principal Financial Officer), as required by Section 302 of the Sarbanes-Oxley Act of 2002.
|            | 
|32.1        |  | Certification of Chairman (Principal Executive Officer), as required by Section 906 of the Sarbanes-Oxley Act of 2002.               
|            | 
|32.2        |  | Certification of Chief Financial Officer (Principal Financial Officer), as required by Section 906 of the Sarbanes-Oxley Act of 2002.



14



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SIGNATURES

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.



|              |  |  |  |                                          |  |                  |  |                                                          
|------------- |  |  |  | ---------------------------------------- |  | ---------------- |  | ---------------------------------------------------------
|              |  |  |  | BRIDGFORD FOODS CORPORATION (Registrant)
|              |  |  |  |                                         
|              |  |  |  |                                          |  | By:              |  | /s/ Raymond F. Lancy                                     
|March 6, 2006 |  |  |  |                                          |  | Raymond F. Lancy
|Date          |  |  |  |                                          |  |                  |  | Chief Financial Officer                                  
|              |  |  |  |                                          |  |                  |  | (Duly Authorized Officer and Principal Financial Officer)



15