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 EXCHANGE
     ACT OF 1934

     For the twenty-six weeks ended June 30, 2001
                                    -------------

( )  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 1-5084
                                                 ------

                              TASTY BAKING COMPANY

               (Exact name of company as specified in its charter)

         Pennsylvania                                   23-1145880
--------------------------------------------------------------------------------
    (State of Incorporation)               (IRS Employer Identification Number)


           2801 Hunting Park Avenue, Philadelphia, Pennsylvania 19129
--------------------------------------------------------------------------------
               (Address of Principal Executive Offices)      (Zip Code)


                                 (215) 221-8500
--------------------------------------------------------------------------------
                (Company's Telephone Number, including area code)

Indicate by check mark whether the company (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  company  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

              Yes X                                    No
                 ---                                     ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

       Common Stock, par value $.50                     8,048,199
--------------------------------------------------------------------------------
            (Title of Class)                     (No. of Shares Outstanding
                                                       at August 8, 2001)


                  INDEX OF EXHIBITS IS LOCATED ON PAGE 9 OF 10.


                                    1 of 10
<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES

                                      INDEX
                                                                            Page
                                                                            ----

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

        Consolidated Condensed Balance Sheets
        June 30, 2001 and December 30, 2000....................................3

        Consolidated Condensed Statements of Operations
        Twenty-six weeks ended June 30, 2001 and June 24, 2000.................4

        Consolidated Condensed Statements of Cash Flows
        Twenty-six weeks ended June 30, 2001 and June 24, 2000.................5

        Notes to Consolidated Condensed Financial Statements...................6

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations..................................7-8

Item 3. Quantitative and Qualitative Disclosure
        About Market Risk8

PART II.OTHER INFORMATION

Item 2. Changes in Securities and Use of Proceeds..............................9

Item 4. Submission of Matters to a Vote of Security Holders....................9

Item 6. Exhibits and Reports on Form 8-K.......................................9

Signatures....................................................................10


                                    2 of 10
<PAGE>
<TABLE>
<CAPTION>

PART I. FINANCIAL INFORMATION
 Item 1. Financial Statements

                                                TASTY BAKING COMPANY AND SUBSIDIARIES
                                                CONSOLIDATED CONDENSED BALANCE SHEETS
                               (unaudited)

------------------------------------------------------------------------------------------------------------------------------------
                                                                         June 30, 2001               December 30, 2000
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                             <C>
Current assets:
       Cash                                                                 $ 305,369                       $ 311,242
       Accounts and notes receivable, net of
         allowance for doubtful accounts                                   26,159,018                      20,771,853
       Inventories:
             Raw materials                                                  3,977,810                       3,433,599
             Work in progress                                                 737,173                         705,380
             Finished goods                                                 2,721,419                       1,791,570
                                                              --------------------------------------------------------
                                                                            7,436,402                       5,930,549
       Deferred income taxes, prepayments and other                         3,105,367                       3,518,928
                                                              --------------------------------------------------------
             Total current assets                                          37,006,156                      30,532,572
                                                              --------------------------------------------------------
 Property, plant and equipment:                                           182,304,697                     178,302,048
       Less accumulated depreciation                                      122,039,596                     118,487,509
                                                              --------------------------------------------------------
                                                                           60,265,101                      59,814,539
                                                              --------------------------------------------------------
 Long-term receivables                                                      9,820,778                       9,652,433
                                                              --------------------------------------------------------
 Deferred income taxes                                                      8,533,257                       8,533,257
                                                              --------------------------------------------------------
 Spare parts inventory and miscellaneous assets                             3,959,098                       3,659,416
                                                              --------------------------------------------------------
 Total assets                                                           $ 119,584,390                    $112,192,217
                                                              ========================================================
 Current liabilities:
       Current obligations under capital leases                             $ 206,256                       $ 216,820
       Notes payable, banks                                                 3,350,000                       2,200,000
       Accounts payable                                                     7,363,330                       5,385,864
       Accrued liabilities                                                  6,479,750                       7,255,765
                                                              --------------------------------------------------------
          Total current liabilities                                        17,399,336                      15,058,449
                                                              --------------------------------------------------------
 Long-term debt, less current portion                                      13,000,000                      13,000,000
                                                              --------------------------------------------------------
 Long-term obligations under capital leases,
       less current portion                                                 3,812,246                       3,842,904
                                                              --------------------------------------------------------
 Accrued pensions and other liabilities                                    11,652,883                      11,728,847
                                                              --------------------------------------------------------
 Postretirement benefits other than pensions                               18,677,031                      18,388,339
                                                              --------------------------------------------------------
 Shareholders' equity:
       Common stock                                                         4,558,243                       4,558,243
       Capital in excess of par value of stock                             29,279,673                      29,742,434
       Retained earnings                                                   35,071,215                      32,351,894
                                                              --------------------------------------------------------
                                                                           68,909,131                      66,652,571
       Less:
       Treasury stock, at cost                                             13,344,785                      16,106,361
       Management Stock Purchase Plan
             receivables and deferrals                                        521,452                         372,532
                                                              --------------------------------------------------------
                                                                           55,042,894                      50,173,678
                                                              --------------------------------------------------------
 Total liabilities and shareholders' equity                             $ 119,584,390                    $112,192,217
                                                              ========================================================

                                    See accompanying notes to consolidated condensed financial statements.
</TABLE>


                                            3 of 10
<PAGE>
<TABLE>
<CAPTION>
                                                                TASTY BAKING COMPANY AND SUBSIDIARIES
                                                           CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                                                             (unaudited)


------------------------------------------------------------------------------------------------------------------------------------
                                                  For the Thirteen Weeks Ended                     For the Twenty-Six Weeks Ended
                                              June 30, 2001           June 24, 2000            June 30, 2001           June 24, 2000
------------------------------------------------------------------------------------------------------------------------------------


<S>                                            <C>                     <C>                      <C>                    <C>
 Gross Sales                                   $66,520,073             $ 62,899,396             $132,175,447           $124,047,156
 Less discounts and allowances                 (23,495,955)             (21,181,024)             (46,757,240)           (41,985,438)
                                      ----------------------------------------------------------------------------------------------
 Net Sales                                      43,024,118               41,718,372               85,418,207             82,061,718
                                      ----------------------------------------------------------------------------------------------
 Costs and expenses:
      Cost of sales                             27,095,930               26,379,584               53,509,774             52,376,596

      Depreciation                               1,703,058                1,819,469                3,552,088              3,681,836

      Selling, general and
         administrative                         10,258,751                9,984,356               20,990,837             19,307,783

      Interest expense                             320,355                  390,499                  602,397                725,550

      Other income, net                           (303,078)                (318,397)                (621,229)              (624,757)
                                      ----------------------------------------------------------------------------------------------

                                                39,075,016               38,255,511               78,033,867             75,467,008
                                      ----------------------------------------------------------------------------------------------

 Income before provision for
      income taxes                               3,949,102                3,462,861                7,384,340              6,594,710

 Provision for income taxes                      1,450,570                1,238,468                2,766,357              2,347,801
                                      ----------------------------------------------------------------------------------------------


 Net income                                    $ 2,498,532               $2,224,393               $4,617,983             $4,246,909
                                      ==============================================================================================


 Average common shares outstanding:
           Basic                                 7,998,041                7,831,331                7,950,222              7,827,270
           Diluted                               8,137,241                7,847,203                8,085,533              7,835,206

 Per share of common stock:

 Net income:              Basic                     $0.31                    $0.28                    $0.58                   $0.54
                                      =====================   ======================   ======================  =====================
                          Diluted                   $0.31                    $0.28                    $0.57                   $0.54
                                      =====================   ======================   ======================  =====================

 Cash dividend                                      $0.12                    $0.12                    $0.24                   $0.24
                                      =====================   ======================   ======================  =====================



                                  See accompanying notes to consolidated condensed financial statements.


</TABLE>

                                                      4 of 10
<PAGE>

<TABLE>
<CAPTION>

                                                        TASTY BAKING COMPANY AND SUBSIDIARIES
                                                   CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                                                     (unaudited)

------------------------------------------------------------------------------------------------------------------------------------
                                                                                        For the Twenty-six Weeks Ended
                                                                                      June 30, 2001                  June 24, 2000
------------------------------------------------------------------------------------------------------------------------------------

<S>                                                                                   <C>                               <C>
 Cash flows from (used for) operating activities
       Net income                                                                     $ 4,617,983                       $ 4,246,909
       Adjustments to reconcile net income to net
        cash provided by operating activities:
           Depreciation                                                                 3,552,088                         3,681,836
           Amortization                                                                    32,988                            33,533
           Other                                                                          707,806                           (15,169)
       Changes in assets and liabilities
        affecting operations                                                           (5,278,006)                       (4,510,187)
                                                                        ------------------------------------------------------------

       Net cash from operating activities                                               3,632,859                         3,436,922
                                                                        ------------------------------------------------------------

 Cash flows from (used for) investing activities
       Purchase of property, plant and equipment                                       (4,002,650)                       (4,387,036)
       Proceeds from owner/operators' loan repayments                                   2,050,497                         2,301,283
       Loans to owner/operators                                                        (2,218,842)                       (1,444,774)
       Other                                                                               14,383                            18,353
                                                                        ------------------------------------------------------------

       Net cash used for investing activities                                          (4,156,612)                       (3,512,174)
                                                                        ------------------------------------------------------------

 Cash flows from (used for) financing activities
       Additional long-term debt                                                        1,000,000                         3,000,000
       Dividends paid                                                                  (1,898,662)                       (1,877,499)
       Payment of long-term debt                                                       (1,041,222)                       (4,096,178)
       Net increase in short-term debt                                                  1,150,000                         2,500,000
       Net proceeds from sale of common stock                                           1,307,764                           (36,704)
                                                                       ------------------------------------------------------------

       Net cash from (used for) financing activities                                      517,880                          (510,381)
                                                                        ------------------------------------------------------------

       Net decrease in cash                                                                (5,873)                         (585,633)

       Cash, beginning of year                                                            311,242                           705,494
                                                                        ------------------------------------------------------------
       Cash, end of period                                                              $ 305,369                         $ 119,861
                                                                        ============================================================


       Supplemental Cash Flow Information:
       Cash paid during the period for:
           Interest                                                                     $ 523,439                         $ 625,699
                                                                        ============================================================
           Income taxes                                                               $ 1,958,642                       $ 4,432,977
                                                                        ============================================================

       Noncash financing activities:
           Issuance of common stock for services                                        $ 804,759                         $ 319,016
                                                                        ============================================================


                                See accompanying notes to consolidated condensed financial statements.
</TABLE>


                                                  5 of 10

<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS


1.   Interim Financial Information

     In the  opinion of  management,  the  accompanying  unaudited  consolidated
     condensed financial statements contain all adjustments  (consisting of only
     normal  recurring  accruals)  necessary  to present  fairly  the  financial
     position of the  company as of June 30, 2001 and  December  30,  2000,  the
     results of its operations for the twenty-six  weeks ended June 30, 2001 and
     June 24, 2000 and cash flows for the  twenty-six  weeks ended June 30, 2001
     and  June  24,  2000.  These  unaudited  consolidated  condensed  financial
     statements  should be read in conjunction with the  consolidated  financial
     statements  and footnotes  thereto in the  company's  2000 Annual Report to
     Shareholders.  In addition,  the results of operations  for the  twenty-six
     weeks ended June 30, 2001 are not necessarily  indicative of the results to
     be expected for the full year.

     Certain  expense  items are  charged to  operations  in the year  incurred.
     However,  for  interim  reporting  purposes  the  expenses  are  charged to
     operations on a pro-rata basis over the company's  accounting periods.  For
     the twenty-six  weeks ended June 30, 2001 and June 24, 2000, the difference
     between the actual expenses incurred and the expenses charged to operations
     was not material.

2.   Net Income Per Common Share

     Net income per common share is presented as basic and diluted  earnings per
     share. Net income per common share - Basic is based on the weighted average
     number of common shares  outstanding during the year. Net income per common
     share - Diluted is based on the weighted  average  number of common  shares
     and dilutive  potential  common  shares  outstanding  during the year.  The
     company's  dilutive  potential  common shares  outstanding  during the year
     result entirely from dilutive stock options.  Potential common shares which
     would  result from the  exercise of stock  options are not  included in the
     computation  of diluted per share amounts when the options'  exercise price
     is greater than the average market price of the common shares.


                                    6 of 10

<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations
        ------------------------------------------------------------------------

Results of Operations
---------------------

For the second  quarter of 2001,  the company  realized net income of $2,498,532
versus $2,224,393 for the second quarter of 2000. Net income per share increased
to $.31 from $.28 per share for the comparable quarter of 2000.

Net income for the twenty-six  weeks ended June 30, 2001 was  $4,617,983  versus
$4,246,909  for the  twenty-six  weeks ended June 24, 2000. Net income per share
increased to $.57 in 2001 from $.54 per share for 2000.

For the second quarter,  gross sales increased 5.8% to $66,520,073,  compared to
$62,899,396  last year.  The  increase in gross sales for the second  quarter of
2001 is primarily due to price  increases  instituted  in the fourth  quarter of
2000. Gross sales, less discounts and allowances, resulted in an increase in net
sales of 3.1% to  $43,024,118,  compared to $41,718,372  reported last year. The
percentage increase in net sales was lower than the percentage increase in gross
sales due to the effect of returns and commissions.

Cost of  sales,  as a  percentage  of gross  sales,  was 40.7% and 41.9% for the
second  quarters of 2001 and 2000,  respectively.  The  improvement in 2001 over
2000 can be attributed to the price increases.

The  company has  evaluated  the  utilization  of certain  fixed  assets and has
determined  that their  useful lives should be extended to seven years from five
years. As a result,  depreciation  expense  decreased by $161,000 for the second
quarter of 2001.

Selling,  general and  administrative  expenses  for the second  quarter of 2001
increased by $274,395 or 2.7% compared to the second  quarter of 2000  generally
as the result of expenses associated with market expansion.

Interest  expense  decreased  for the second  quarter of 2001  versus the second
quarter of 2000 as a result of decreased average interest rates as well as lower
average borrowing levels.

The  effective  tax rate was 36.7% for the quarter ended June 30, 2001 and 35.8%
for the quarter ended June 24, 2000, which compares to a federal  statutory rate
of 34%. The difference  between the effective rate and the statutory rate in the
second quarter of 2001 was the effect of state taxes. The difference between the
effective  rate and the  statutory  rate in the  second  quarter of 2000 was the
effect of state taxes  partially  offset by tax  benefits  arising  from passive
income.


                                    7 of 10
<PAGE>
Financial Condition
-------------------

The company has  consistently  demonstrated  the ability to generate  sufficient
cash  flow from  operations.  Bank  borrowings,  under  various  lines of credit
arrangements, are used to supplement cash flow from operations during periods of
cyclical shortages.

For the twenty-six weeks ended June 30, 2001, net cash from operating activities
increased by $195,937 to $3,632,859 from $3,436,922 for the same period in 2000.
The  increase in 2001  compared to 2000 was due to an increase in net income and
favorable  non-cash  adjustments  to net income.  These  increases  to cash from
operating  activities were offset by a negative change in assets and liabilities
affecting  operations  consisting  of an  increase in  accounts  receivable  and
inventory  offset by a decrease in cash paid for income taxes and an increase in
accounts payable.

Net cash used for investing  activities for the twenty-six  weeks ended June 30,
2001 increased by $644,438 relative to the same period in 2000. The increase was
principally due to an increase in loans to owner/operators  offset by a decrease
in the purchase of equipment compared to the prior year.

Net cash from financing  activities for the twenty-six weeks ended June 30, 2001
increased  by  $1,028,261  relative to the same  twenty-six  weeks in 2000.  The
increase is  primarily  the result of proceeds  from the sale of treasury  stock
through the exercise of executive stock options.

For  the  remainder  of  2001  the  company  anticipates  that  cash  flow  from
operations,  along with the continued  availability of bank lines of credit, the
revolving  credit  agreement  and  other  long-term   financing,   will  provide
sufficient cash to meet operating and financing requirements.

Forward-Looking Statements
--------------------------

Certain   statements  in  this  filing  that  are  not   historical   facts  are
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995.  Forward-looking  statements  involve  risks and
uncertainties,  which could cause actual results to differ from those projected.
Factors  that  could  cause  actual  results  to differ  materially  from  those
expressed  or  implied by such  forward-looking  statements  include  changes in
general economic or business conditions,  the availability of capital upon terms
acceptable to the company,  the  availability  and prices of raw materials,  the
level of demand  for the  company's  products,  legal  proceedings  to which the
company is or may become a party,  the  actions of  competitors  and  customers,
changes in consumer tastes or eating habits, the success of plant  modernization
and business strategies  implemented by the company,  and the ability to develop
and market in a timely and efficient  manner new products  which are accepted by
consumers.

Item 3. Quantitative and Qualitative Disclosure About Market Risk
        ---------------------------------------------------------

     The company has certain  floating  rate debt notes.  Under  current  market
conditions, the company believes that changes in interest rates would not have a
material impact on the  consolidated  financial  statements of the company.  The
company also has notes  receivable from owner operators whose rates adjust every
three years,  and,  therefore,  would partially  offset the  fluctuations in the
company's interest rates on its notes payable. The company also has the right to
sell  these  notes  receivable,  and could use these  proceeds  to  liquidate  a
corresponding amount of the debt notes payable.


                                    8 of 10
<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES

PART II. OTHER INFORMATION

Item 2. Changes in Securities and Use of Proceeds
        -----------------------------------------
        During the quarter,  the company sold 50,575  shares of its common stock
        to various  officers and one former director of the company  pursuant to
        the exercise of outstanding stock options. All shares were sold for cash
        and the aggregate  price paid for the shares sold was  $558,987.50.  The
        options were  originally  granted under the terms and  conditions of the
        company's  various  stock option plans and the stock option  awards made
        from time to time to directors. The original stock option awards and the
        subsequent  sale  of  common  stock  by  the  company  are  exempt  from
        registration  as  transactions  by the  issuer  not  involving  a public
        offering as provided  under Section 4(2) of the  Securities Act of 1933,
        as amended,  and the  regulations and rulings  thereunder.  All proceeds
        from the sale of the  common  stock will be used for  general  corporate
        purposes.


Item 4. Submission of Matters to a Vote of Security Holders

  (a)   The company's annual meeting of shareholders was held on April 27, 2001.

  (b)   The directors elected at the meeting were:
                                           For       Against    Withheld

           Philip J. Baur, Jr.          6,538,159       ---      29,579
           Judith M. Von Seldeneck      6,536,498       ---      31,240

        Other directors whose terms of office continued after the meeting are as
        follows:  Carl S. Watts,  Fred C.  Aldridge,  Jr., Esq., G. Fred DiBona,
        Jr., Ronald J. Kozich and John M. Pettine.

  (c)   Other  matters  voted upon at the meeting and the results of those
        votes were as follows:

<TABLE>
<CAPTION>
                                                       For      Against    Abstain
<S>                                                 <C>         <C>           <C>
        Adoption of the Tasty Baking Company
        Restricted Stock Incentive Plan             5,367,862   1,158,828     41,039

        Approval of PricewaterhouseCoopers LLP, as
        independent certified public accountants    6,535,829      12,606     19,299
</TABLE>


The foregoing matters are described in detail in the company's proxy statement
dated March 30, 2001.

Item 6.   Exhibits and Reports on Form 8-K

      (a) Exhibits: Exhibit 10 - Tasty Baking Company Restricted Stock
          Incentive Plan

      (b) Reports on Form 8-K

          The  company  did not file a report on Form 8-K during the  twenty-six
weeks ended June 30, 2001.


                                    9 of 10
<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES

                                   SIGNATURES
                                   ----------

Pursuant to the requirements of the Securities Exchange Act of 1934, the company
has duly  caused  this  report  to be signed  on its  behalf by the  undersigned
thereunto duly authorized.





                                            TASTY BAKING COMPANY
                                       -----------------------------------------
                                                   (Company)








             August 13, 2001                   /S/ John M. Pettine
-----------------------------------    -----------------------------------------
                 (Date)                            JOHN M. PETTINE
                                             EXECUTIVE VICE PRESIDENT AND
                                                CHIEF FINANCIAL OFFICER
                                             (PRINCIPAL FINANCIAL OFFICER)




             August 13, 2001                   /S/ Daniel J. Decina
-----------------------------------    -----------------------------------------
                 (Date)                            DANIEL J. DECINA
                                              VICE PRESIDENT, FINANCE AND
                                                 CHIEF ACCOUNTING OFFICER
                                              (PRINCIPAL ACCOUNTING OFFICER)


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