<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 June 14, 1998 and June 29, 1997, and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
       
<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>                               Jun-14-1998          Jun-29-1997   
<CASH>                                          6,045                5,803   
<SECURITIES>                                   24,915                1,495    
<RECEIVABLES>                                   3,690 <F1>           3,365 <F1>
<ALLOWANCES>                                        0                    0   
<INVENTORY>                                     1,207                  827   
<CURRENT-ASSETS>                               11,990               11,888   
<PP&E>                                        113,755              111,884   
<DEPRECIATION>                                 48,408               41,990   
<TOTAL-ASSETS>                                131,232              112,272   
<CURRENT-LIABILITIES>                          21,721               21,572   
<BONDS>                                        62,069               62,332   
<PREFERRED-MANDATORY>                               0                    0   
<PREFERRED>                                         5                    0   
<COMMON>                                        2,503                2,084   
<OTHER-SE>                                     36,838               16,969   
<TOTAL-LIABILITY-AND-EQUITY>                  131,232              112,272   
<SALES>                                        64,135               67,811   
<TOTAL-REVENUES>                               66,614               70,685   
<CGS>                                          57,193               59,670   
<TOTAL-COSTS>                                  66,025               67,878   
<OTHER-EXPENSES>                                 (155)                (367)  
<LOSS-PROVISION>                                    0                    0   
<INTEREST-EXPENSE>                              3,374                3,734   
<INCOME-PRETAX>                                (2,630)                (560)  
<INCOME-TAX>                                       52                  300   
<INCOME-CONTINUING>                            (2,682)                (860)  
<DISCONTINUED>                                      0                    0   
<EXTRAORDINARY>                                     0                    0   
<CHANGES>                                           0                    0   
<NET-INCOME>                                   (2,682)                (860)  
<EPS-PRIMARY>                                   (0.11)               (0.04)  
<EPS-DILUTED>                                   (0.11)               (0.04)  
<FN>
<F1>   Receivables conist of --  
       Accounts Receivable - net              $ 2,925              $ 2,492  
       Notes Receivable                           765                  873  
                                              -------              -------
       Total                                  $ 3,690              $ 3,365  
                                              =======              =======
</FN>
         

</TABLE>