<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, 1998 and March 30, 1997, 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>                               Dec-28-1998                  Dec-28-1997                  
<PERIOD-START>                                  Dec-29-1997                  Dec-30-1996                
<PERIOD-END>                                    Mar-22-1998                  Mar-30-1997                
<CASH>                                                4,174                        4,657                
<SECURITIES>                                         25,323                        1,790                
<RECEIVABLES>                                         3,119<F1>                    2,897<F1>         
<ALLOWANCES>                                              0                            0                
<INVENTORY>                                           1,158                          787                
<CURRENT-ASSETS>                                     10,647                       10,795                
<PP&E>                                              113,244<F2>                  110,138<F2>         
<DEPRECIATION>                                       46,721                       40,465                
<TOTAL-ASSETS>                                      131,816                      111,318                
<CURRENT-LIABILITIES>                                21,196                       20,350                
<BONDS>                                              61,877                       62,485                
<PREFERRED-MANDATORY>                                     0                            0                
<PREFERRED>                                               5                            0                
<COMMON>                                              2,484                        2,082                
<OTHER-SE>                                           37,934                       16,610                
<TOTAL-LIABILITY-AND-EQUITY>                        131,816                      111,318                
<SALES>                                              30,962                       31,250                
<TOTAL-REVENUES>                                     32,164                       32,595                
<CGS>                                                27,168                       26,940                
<TOTAL-COSTS>                                        31,607                       31,620                
<OTHER-EXPENSES>                                       (77)                        (103)                
<LOSS-PROVISION>                                          0                            0                
<INTEREST-EXPENSE>                                    1,690                        1,880                
<INCOME-PRETAX>                                     (1,056)                        (802)                
<INCOME-TAX>                                             26                          150                
<INCOME-CONTINUING>                                 (1,082)                        (952)                
<DISCONTINUED>                                            0                            0                
<EXTRAORDINARY>                                           0                            0                
<CHANGES>                                                 0                            0                
<NET-INCOME>                                        (1,082)                        (952)                
<EPS-PRIMARY>                                         (.04)                        (.05)                
<EPS-DILUTED>                                         (.04)                        (.05)                
<FN>
Footnotes:
     (1) Receivables consists of --
     Accounts Receivable                                                                         
                                                 $   3,003                  $     2,211
     Notes Receivable                                  116                          686
                                      --------------------------------------------------
     Total                                                                               
                                                 $   3,119                  $     2,897
                                      ==================================================
</FN>
          

</TABLE>