<TABLE> <S> <C>

<ARTICLE>                     5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Rally's Hamburgers, Inc., for the quarterly periods
ended March 22, 1999 and March 22, 1998, and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER>                    1,000
                                                                             
<S>                             <C>                  <C>         
<PERIOD-TYPE>                     3-MOS              3-MOS                     
<FISCAL-YEAR-END>                   JAN-03-2000        DEC-28-1998
<PERIOD-START>                      DEC-29-1998        DEC-29-1997
<PERIOD-END>                        MAR-22-1999        MAR-22-1998
<CASH>                                    7,971              4,174
<SECURITIES>                             22,662             25,323
<RECEIVABLES>                             3,060<F1>          3,819<F1>
<ALLOWANCES>                                  0                  0
<INVENTORY>                                 872              1,158
<CURRENT-ASSETS>                         13,323             10,647
<PP&E>                                   60,290             66,523
<DEPRECIATION>                           53,992             46,721
<TOTAL-ASSETS>                          122,202            131,816
<CURRENT-LIABILITIES>                    19,204             21,196
<BONDS>                                  61,172             61,877
<PREFERRED-MANDATORY>                         0                  0
<PREFERRED>                                   0                  5
<COMMON>                                  2,961              2,484
<OTHER-SE>                               29,955             37,934
<TOTAL-LIABILITY-AND-EQUITY>            122,202            131,816
<SALES>                                  29,040             30,962
<TOTAL-REVENUES>                         30,119             32,164
<CGS>                                    26,007             27,290
<TOTAL-COSTS>                            30,010             31,565
<OTHER-EXPENSES>                            (10)               (35)
<LOSS-PROVISION>                              0                  0
<INTEREST-EXPENSE>                        1,685              1,690
<INCOME-PRETAX>                          (1,566)            (1,056)
<INCOME-TAX>                             (1,603)                26
<INCOME-CONTINUING>                      (1,603)            (1,082)
<DISCONTINUED>                                0                  0
<EXTRAORDINARY>                               0                  0
<CHANGES>                                     0                  0
<NET-INCOME>                             (1,603)            (1,082)
<EPS-PRIMARY>                             (0.05)             (0.04)
<EPS-DILUTED>                             (0.05)             (0.04)
<FN>
<F1> Receivables consist of --
     Accounts Receivable - net      $     2,596         $    3,003
     Notes Receivable - net                 464                816
                                    -----------         ----------
     Total                          $     3,060         $    3,819
                                    ===========         ==========
</FN>
           

</TABLE>