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 thirteen weeks ended March 28, 1998

( )  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 registrant 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
              (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

                      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                             7,793,235
          (Title of Class)                          (No. of Shares Outstanding
                                                        at April 23, 1998)

                  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
              March 28, 1998 and December 27, 1997............................3

              Consolidated Statements of Operations
              Thirteen weeks ended March 28, 1998 and March 29, 1997..........4

              Consolidated Condensed Statements of Cash Flows
              Thirteen weeks ended March 28, 1998 and March 29, 1997..........5

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

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


PART II.      OTHER INFORMATION

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

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

Signature....................................................................10

                                    2 OF 10
<PAGE>
PART I.       FINANCIAL INFORMATION
Item 1.       Financial Statements

                      TASTY BAKING COMPANY AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (unaudited)
<TABLE>
<CAPTION>
<S>                                                                        <C>                          <C>              
                                                                              March 28, 1998             December 27, 1997
-------------------------------------------------------------------------------------------------------------------------
Current assets:
     Cash                                                                  $          145,752           $         748,117
     Accounts and notes receivable, net of
       allowance for doubtful accounts                                             21,381,375                  18,661,411
     Inventories:
       Raw materials                                                                1,874,297                   1,940,423
       Work in progress                                                               592,098                     580,362
       Finished goods                                                                 890,049                     775,417
                                                                       --------------------------------------------------
                                                                                    3,356,444                   3,296,202
     Deferred income taxes, prepayments and other                                   3,309,938                   2,241,587
                                                                       --------------------------------------------------
       Total current assets                                                        28,193,509                  24,947,317
                                                                       --------------------------------------------------
Property, plant and equipment:                                                    150,669,238                 149,709,346
     Less accumulated depreciation                                                106,313,890                 105,501,230
                                                                       --------------------------------------------------
                                                                                   44,355,348                  44,208,116
                                                                       --------------------------------------------------
Long-term receivables                                                              11,328,694                  11,233,128
                                                                       --------------------------------------------------
Deferred income taxes                                                              11,059,696                  11,059,696
                                                                       --------------------------------------------------
Spare parts inventory and miscellaneous assets                                      3,230,289                   2,871,121
                                                                       --------------------------------------------------
Total assets                                                               $       98,167,536           $      94,319,378
                                                                       ==================================================

Current liabilities:
     Current portion of long-term debt                                     $           29,354           $          29,354
     Current obligations under capital leases                                         489,440                     543,962
     Notes payable, banks                                                             950,000                     900,000
     Accounts payable                                                               6,099,529                   4,345,944
     Accrued liabilities                                                            7,077,316                   6,817,319
     Accrued income taxes                                                             180,146                   1,826,981
                                                                       --------------------------------------------------
        Total current liabilities                                                  14,825,785                  14,463,560
                                                                       --------------------------------------------------
Long-term debt, less current portion                                                9,765,933                   7,773,053
                                                                       --------------------------------------------------
Long-term obligations under capital leases,
     less current portion                                                             499,534                     587,156
                                                                       --------------------------------------------------
Accrued pensions and other liabilities                                             12,258,405                  11,771,540
                                                                       --------------------------------------------------
Postretirement benefits other than pensions                                        18,465,607                  18,129,226
                                                                       --------------------------------------------------
Shareholders' equity:
     Common stock                                                                   4,558,243                   4,558,243
     Capital in excess of par value of stock                                       29,340,203                  29,337,938
     Retained earnings                                                             25,494,487                  24,788,276
                                                                       --------------------------------------------------
                                                                                   59,392,933                  58,684,457
     Less:
     Treasury stock, at cost                                                       16,707,854                  16,738,364
     Management Stock Purchase Plan
       receivables and deferrals                                                      332,807                     351,250
                                                                       --------------------------------------------------
                                                                                   42,352,272                  41,594,843
                                                                       --------------------------------------------------

Total liabilities and shareholders' equity                                 $       98,167,536           $      94,319,378
                                                                       ==================================================
</TABLE>
     See accompanying notes to consolidated condensed financial statements.

                                    3 OF 10
<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                   (unaudited)
<TABLE>
<CAPTION>
<S>                                                                        <C>                          <C>              
                                                                                       For the Thirteen Weeks Ended
                                                                                March 28, 1998              March 29, 1997
--------------------------------------------------------------------------------------------------------------------------
     Gross Sales                                                           $       57,160,752           $      55,633,240

     Less discounts and allowances                                                (18,840,284)                (18,178,494)
                                                                           -----------------------------------------------

     Net Sales                                                                     38,320,468                  37,454,746
                                                                           ----------------------------------------------

     Costs and expenses:
         Cost of sales                                                             23,824,979                  23,172,108

         Depreciation                                                               1,751,378                   1,695,427

         Selling, general and administrative                                       10,471,017                  10,231,580

         Interest expense                                                             141,243                     127,590
         Other income, net                                                           (351,364)                   (396,427)
                                                                           -----------------------------------------------

                                                                                   35,837,253                  34,830,278
                                                                           ----------------------------------------------

     Income before provision for income taxes                                       2,483,215                   2,624,468

     Provision for income taxes                                                       842,113                   1,010,675
                                                                           ----------------------------------------------

     Net income                                                            $        1,641,102           $       1,613,793
                                                                           ==============================================

     Average common shares outstanding:              Basic                          7,791,652                   7,743,369
                                                     Diluted                        7,965,199                   7,796,711

     Per share of common stock:

     Net income - Basic and Diluted                                                      $.21                        $.21
                                                                           ==============================================
     Cash dividend                                                                       $.12                       $.112
                                                                           ==============================================
</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                    4 of 10
<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (unaudited)
<TABLE>
<CAPTION>
<S>                                                                        <C>                          <C>              
                                                                                   For the Thirteen Weeks Ended
                                                                               March 28, 1998              March 29, 1997
-------------------------------------------------------------------------------------------------------------------------

Cash flows from (used for) operating activities
     Net income                                                            $        1,641,102           $       1,613,793
     Adjustments to reconcile net income to net
      cash provided by operating activities:
         Depreciation                                                               1,751,378                   1,695,427
         Amortization                                                                  43,651                      17,680
         Other                                                                        883,774                     833,997
     Changes in assets and liabilities
      affecting operations                                                         (3,481,810)                 (2,488,534)
                                                                       ---------------------------------------------------

     Net cash from operating activities                                               838,095                   1,672,363
                                                                       --------------------------------------------------

Cash flows from (used for) investing activities
     Proceeds from owner/operators' loan repayments                                   875,832                   1,082,652
     Purchase of property, plant and equipment                                     (2,344,325)                 (3,003,813)
     Loans to owner/operators                                                        (970,408)                 (1,686,258)
     Other                                                                               (179)                     17,923

     Net cash used for investing activities                                        (2,439,080)                 (3,589,496)
                                                                       ---------------------------------------------------

Cash flows from (used for) financing activities
     Additional long-term debt                                                      3,000,000                   2,000,000
     Proceeds from sale of common stock                                                32,775                     181,181
     Dividends paid                                                                  (934,891)                   (867,109)
     Payment of long-term debt                                                     (1,149,264)                 (1,183,776)
     Net increase in short-term debt                                                   50,000                   2,000,000
                                                                       --------------------------------------------------

     Net cash from financing activities                                               998,620                   2,130,296
                                                                       --------------------------------------------------

     Net increase (decrease) in cash                                                 (602,365)                    213,163

     Cash, beginning of year                                                          748,117                     233,366
                                                                       --------------------------------------------------

     Cash, end of period                                                   $          145,752           $         446,529
                                                                       ==================================================

     Supplemental Cash Flow Information:
     Cash paid during the period for:
         Interest                                                          $          152,893           $          88,816
                                                                       ==================================================
         Income taxes                                                      $          235,648           $       1,106,307
                                                                       ==================================================
</TABLE>

     See accompanying notes to consolidated condensed financial statements.

                                    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 March 28,  1998 and  December  27, 1997 and
       the results of its operations for the thirteen weeks ended March 28, 1998
       and March 29, 1997 and cash flows for the thirteen  weeks ended March 28,
       1998 and March 29, 1997. These unaudited consolidated condensed financial
       statements should be read in conjunction with the consolidated  financial
       statements  and footnotes  thereto in the company's 1997 Annual Report to
       Shareholders.  In addition,  the results of  operations  for the thirteen
       weeks ended March 28, 1998 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  thirteen  weeks  ended  March  28,  1998 and  March  29,  1997,  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 calculated  according to the  requirements
       of Statement of Financial  Accounting  Standards  No. 128 - "Earnings Per
       Share" which requires companies to present 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.

                                    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 first quarter of 1998, the company  realized net income of $1,641,102 or
$.21 per share  versus  $1,613,793  or $.21 per share for the first  quarter  of
1997.

For the first quarter,  gross sales increased 2.7% to  $57,160,752,  compared to
$55,633,240 last year. Gross sales,  less discounts and allowances,  resulted in
net  sales  of  $38,320,468,   compared  to  $37,454,746   reported  last  year,
representing  an increase of 2.3% which was related to a sales  volume  increase
from promotional efforts at the Tastykake division  (Tastykake) and the addition
of Dutch Mill donuts to Tastykake owner/operator routes.

Cost of sales, as a percentage of gross sales, was 41.7% and 41.7% for the first
quarters of 1998 and 1997, respectively. Product development costs at the Oxford
facility  were  offset  by  improved  manufacturing   efficiencies  and  reduced
ingredient costs.

Selling,  general  and  administrative  expenses  for the first  quarter of 1998
increased by $239,437 or 2.3% over the  comparable  period in 1997.  Most of the
increase can be attributed to the additional  expenses from the Oxford facility,
which was not in operation  during the first quarter of 1997. The balance of the
increase  resulted  from an increase  in selling  expenses  associated  with the
expansion into new geographic  regions and an increase in  administration  costs
related to an upgrade of the computer system.

Interest  expense  increased  for the first  quarter  of 1998  versus  the first
quarter of 1997 as a result of increased average borrowing levels.  The decrease
in other income,  net for the first quarter of 1998 was the result of a decrease
in rental income.

The  effective tax rate was 34.0% for the quarter ended March 28, 1998 and 38.5%
for the quarter ended March 29, 1997 which compares to a federal  statutory rate
of 34%.  There was no difference  between the  effective  rate and the statutory
rate in the first  quarter of 1998  because the effect of state taxes was offset
principally  due to tax  benefits  arising from passive  income.  The  principal
reason for the  difference  between the effective rate and the statutory rate in
the first quarter of 1997 was the effect of state income taxes.

                                    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 thirteen weeks ended March 28, 1998, net cash from operating  activities
decreased by $834,268 to $838,095 from  $1,672,363  for the same period in 1997.
The decrease in net cash from  operating  activities was  principally  due to an
increase in prepaid expenses slightly offset by an increase in accrued expenses.

Net cash used for investing  activities  for the thirteen  weeks ended March 28,
1998 decreased by $1,150,416 relative to the same period in 1997 principally due
to a decrease  in capital  requirements  at the  Oxford  facility,  as well as a
decrease in the funds needed to finance the net owner/operator loan activity.

Net cash from  financing  activities for the thirteen weeks ended March 28, 1998
decreased  by  $1,131,676  relative  to the same  thirteen  weeks  in 1997.  The
decrease  is  primarily  the  result of a net  decrease  in short and  long-term
borrowing relative to the prior year.

For  the  remainder  of  1998  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.

                                    8 of 10
<PAGE>
                      TASTY BAKING COMPANY AND SUBSIDIARIES

PART II.      OTHER INFORMATION

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

              No matters were submitted to a vote of security holders during the
              first quarter of the fiscal year covered by this report.

Item 6.       Exhibits and Reports on Form 8-K

     (a)      Exhibits:  Exhibit 27 - Financial Data Schedule

     (b)      Reports on Form 8-K

              The  registrant  did not file a  report  on Form  8-K  during  the
                   thirteen weeks ended March 28, 1998.

                                  Exhibit Index

                      Exhibit 27 - Financial Data Schedule



                                    9 of 10
<PAGE>

                      TASTY BAKING COMPANY AND SUBSIDIARIES

                                    SIGNATURE

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.





                                               TASTY BAKING COMPANY
                                                   (Registrant)




     May 8, 1998                             /S/ John M. Pettine
       (Date)                                    JOHN M. PETTINE
                                                VICE PRESIDENT AND
                                              CHIEF FINANCIAL OFFICER
                                    (PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER)



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