SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C. 20549

                                     FORM 10-K

_X_  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
     ACT OF 1934 (FEE REQUIRED)

     For the fiscal year ended______MARCH 28, 1998___________________________or
     
___  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES 
     EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
     For the transition period from _______________ to _________________

COMMISSION FILE NUMBER:____1-7138_________________________________________
________________________________CAGLE'S, INC._____________________________
       (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) 
     
___________GEORGIA_____________________________________58-0625713_________
     (STATE OF INCORPORATION)               I.R.S EMPLOYER IDENTIFICATION NO.  
 
_______2000 HILLS AVE., NW, ATLANTA, GA.______________________30318_______
     (address of principal executive offices)               (zip code)

Registrant's telephone number, including area code: ___(404) 355-2820_____

SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
       Title of each class             Name of exchange on which registered

____CLASS A COMMON STOCK___________________AMERICAN STOCK EXCHANGE________

SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:   
________________none______________________________________________________

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.       _X_ YES    ___ NO

STATE THE AGGREGATE MARKET VALUE OF THE VOTING STOCK HELD BY NONAFFILIATES OF 
THE REGISTRANT.  (THE AGGREGATE MARKET VALUE SHALL BE COMPUTED BY REFERENCE TO 
THE PRICE AT WHICH THE STOCK WAS SOLD, OR THE AVERAGE BID AND ASKED PRICES OF 
SUCH STOCK, AS OF A SPECIFIED DATE WITHIN 60 DAYS PRIOR TO THE DATE OF FILING.)
__$22,123,201_(based_on_11.25_per_share_closing_price_on_April_28,_1998)___

INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE REGISTRANT'S CLASSES 
OF COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE (APPLICABLE ONLY TO 
CORPORATE REGISTRANTS.)
__Class_A_Common_Stock_at_$1.00_par_value______________________________________
__5,006,282_shares_at_$1.00_par_value__________________________________________



DOCUMENTS INCORPORATED BY REFERENCE:  LIST THE FOLLOWING DOCUMENTS IF 
INCORPORATED BY REFERENCE AND THE PART OF THE FORM 10-K INTO WHICH THE DOCUMENT
IS INCORPORATED:  (1) ANY ANNUAL REPORT TO SECURITY HOLDERS;  (2) ANY PROXY OR 
INFORMATION STATEMENT; AND (3) ANY PROSPECTUS FILED PURSUANT TO RULE 424(b) OR 
(c) UNDER THE SECURITIES ACT OF 1933.  (THE LISTED DOCUMENTS SHOULD BE CLEARLY 
DESCRIBED FOR IDENTIFICATION PURPOSES.)
  Parts of the following documents are incorporated by reference in Parts II, 
  III, and IV of this Form 10-K report; 1) registrant's annual report to 
  shareholders for fiscal year ended March 28, 1998 - Items 5, 6, 7, 8, and 14.
  2) Proxy statements for registrant's 1998 annual meeting of shareholders- 
  Items 10, 11, 12, and 13.

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                                CAGLE'S, INC.
                                   
                                   PART I

                         Item 1:  General Business

Cagle's, Inc. (the "Company"), which began business in 1945 and was first
incorporated in Georgia in 1953, and its wholly owned subsidiary (Cagle's Farms
,Inc., formerly Strain Poultry Farms, Inc.) produce, market, and distribute a
variety of fresh and frozen poultry products.  The vertically integrated
operations of the Company consist of breeding, hatching, and growing of
chickens; feed milling; processing; further processing; and marketing.  The
Company's products are sold to national and regional independent and chain
supermarkets, food distributors, food processing companies, national fast-food
chains, and institutional users, such as restaurants, schools, and 
distributors, by the Company's sales staff located in Atlanta, Georgia, and 
through brokers selected by the Company.


                       Narrative Description of Business

Food Processing

All of the Company's business activities are conducted on a vertically
integrated basis within one industry segment, poultry products.  The Company's
various poultry products are closely related, have similar purposes and uses,
and, except for product sold under cost-plus arrangements, are similar in terms
of profitability and types and degrees of risks.  In addition, the production
processes are similar to the extent that (a) production facilities are shared 
or are interchangeable and (b) the same types of raw materials, labor, and 
capital are used.  Markets and marketing methods are comparable for all 
products (except cost-plus products) to the extent that they are generally sold
to the same types of customers by a common sales force and are sensitive to 
changes in economic conditions to the same degree.

The Company currently processes approximately 2,100,000 birds per week in its
three processing plants, including two plants which operate with two full
shifts.  Of the Company's total production, approximately 1,150,000 head per
week are deboned. 

The complete cycle for growing broilers begins with the placement on a farm of 
a day-old breeder chick.  This bird is reared for 25 weeks, at which time it
begins to produce hatching eggs.  The breeder produces eggs for approximately 
40 weeks.  These eggs are set in one of the Company's two hatcheries, and in 
three weeks, a baby chick is hatched.

The day-old broiler chick is placed on a farm where it will grow for six to
eight weeks depending upon the size of bird desired, at which time it is
transported to the processing plant for slaughter.  To produce uniform size for
customer demands, the Company grows the males and females separately.  This is
necessary because males and females grow at different rates and have different
nutritional requirements for cost-effective growth.  A significant investment 
in field inventories is required to support the Company's operating cycle.

<PAGE>

All feed for all flocks is produced in feed mills owned by the Company.

The Company's goal is to add value to all of its birds, and the Company
currently is accomplishing this on approximately 85% of all head slaughtered. 
This value-added product takes the form of deboned breast and thigh meat, 
cut-up marinated raw breaded chicken (including barbecue), government school
lunch product, fast-food cuts, IQF (individually quick frozen) products, and
mechanically deboned chicken meat.

Raw Materials

The primary raw materials used by the Company are corn, soybean meal, and other
ingredients; packaging materials; cryogenic materials; and breeder chicks.  The
Company believes that sources of supply for these materials are adequate and
does not expect significant difficulty in acquiring required supplies.  The
major source of supply is the midwestern grain belt of the United States,
although local supplies are utilized when available.  Prices for the feed
ingredients are sensitive to supply fluctuations worldwide, and weather
conditions, especially drought, can cause significant price volatility.  Since
feed is the most significant factor in the cost of producing a broiler chicken,
those fluctuations can have significant effects on margins.  The Company also
purchases product outside for further processing requirements.

Research and Development

The Company has made no material expenditures for research and development
during the last three years.

Employees and Labor Relations

The Company employs approximately 3,500 persons of whom approximately 46% are
covered by collective bargaining agreements which expire at various dates over
the next three years.  The Company believes its relationship with the 
bargaining groups and other employees is good.

Seasonal Variations in Business

The seasonal demand for the Company's products is highest during the late 
spring and summer months and is normally lowest during the winter months.

Customers

Equity Foods ("Equity") accounted for approximately 16% of the Company's sales
for the year ended March 28, 1998.  The Company has an agreement with Equity to
supply chicken under a cost-plus arrangement, and approximately 20% of the
Company's production is committed to Equity.  Under the arrangement, production
in excess of Equity's demands and by-products are sold to other customers and
are credited against the cost-plus arrangement.  The Company generally receives
full margin on processed pounds regardless of the final customer.

Backlog

The Company had no material backlog of orders existing as of March 28, 1998.

<PAGE>


Competition

The Company is a leading regional integrated poultry processor, ranking 
seventh nationally in pounds produced.  The Company's products compete in the
marketplace with comparable products of approximately ten national and regional
producers in the areas of quality, service, and price.  The Company believes 
its flexibility and accessibility are positive factors enhancing the Company's
competitive position.

Regulation

The Company's facilities and operations are subject to regulation by various
federal and state agencies, including, but not limited to, the federal Food 
and Drug Administration ("FDA"), the United States Department of Agriculture
("USDA"), the Environmental Protection Agency, the Occupational Safety and
Health Administration, and the corresponding state agencies.  The Company's
processing plants are subject to continuous on-site inspection by the USDA, 
and the FDA inspects the production of the Company's feed mill.
Management believes that the Company is in substantial compliance with
applicable laws and regulations relating to the operation of its facilities.  
Subsequent to March 28, 1998 the Company was cited by OSHA for several 
violations at its Collinsville, Alabama plant and assessed a fine of $185,000.  
The Company has appealed this citation.


                           Item 2:  Properties

Production and Facilities

Breeding and Hatching

The Company supplies its broiler chicks by producing all of its own hatching
eggs from breeder flocks owned by the Company.  These breeder flocks are
maintained on 60 contract grower farms.  In addition, the replacement breeder
pullets are maintained on 41 contract grower farms where the breeders are 
reared from one day old to approximately 18 weeks old and then moved to the
breeder farm where they begin to produce eggs at about 25 weeks of age.  
These farms are located in north Georgia.

The Company owns two hatcheries located in Dalton, Georgia, and Forsyth,
Georgia, at which eggs are incubated and hatched.  This is a continuous 
process and requires 21 days to complete.  After the chicks are removed 
from the incubator, they are separated by sex, vaccinated against disease, 
and moved by a special-purpose vehicle, Chick Bus, to the Company's grow-out
farms.  The two hatcheries have an aggregate capacity of 2,100,000 chicks per
week.  Both of the hatcheries are company-owned.

Grow-Out

The Company places its broiler chicks on approximately 273 contract grower
farms.  The birds are grown separately by sex to provide the exact size
requirement of the Company's customers.

The independent contract growers provide the housing, equipment, utilities, 
and labor to grow the baby chicks to market age, which varies from six to 
eight weeks, depending on the market for which they are intended.  The Company
supplies the baby chicks, the feed, and all veterinary and technical services.
Title to the birds remains with the Company at all times.  The contract 
growers are paid on live weight and are guaranteed a minimum rate with 

<PAGE>

various incentives based upon a grower's performance as compared to other
growers whose birds are marketed during the same week.  These contract 
farms are located in Georgia, Tennessee, and Alabama.

Feed Mills

The Company owns two feed mills. The Dalton, Georgia feed mill has a 
production capacity of approximately 520,000 tons per year. The feed mill in
Forsyth, Georgia, has the capacity to produce approximately 300,000 tons 
per year.

Processing

As the broilers reach the desired processing weight, they are removed from the
houses and transported by company trucks to a processing plant.

The processing plants are located in Pine Mountain, Georgia; Macon, Georgia;
and Collinsville, Alabama.  The Macon, Georgia, plant has the capacity to 
process 8,400 birds per hour, and the Collinsville plant can process up to 
12,600 birds per hour.  The Pine Mountain plant which was destroyed by 
fire in June 1995 but has since been rebuilt now has the capacity to process 
10,800 birds per hour.  The Pine Mt. Valley, Georgia, and Collinsville, 
Alabama, plants operate two full shifts. The Macon, Georgia plant changed from
Two shifts to one shift during FY 1998.

Further Processing and Deboning

The Company has a stated goal of marketing the majority of its product as
value-added product.  This is accomplished by cutting the product into parts 
or fast-food cuts, deboning, marinating and breading, and converting into 
other convenience-type products.

Currently, further processing and deboning are conducted at the Collinsville,
Alabama, plant (cutting, marinating, and breading) and the Pine Mountain and
Macon, Georgia, plants (deboning).  In addition, the Atlanta, Georgia, 
facility and the Lovejoy, Georgia, facility are totally devoted to further
processing.

Freezer Storage

The Company's facilities located in Atlanta, Georgia; Collinsville, Alabama;
Pine Mountain, Georgia; and Lovejoy, Georgia, have freezer storage facilities
with aggregate capacity of approximately 6,800,000 pounds of frozen product.
The Company utilizes outside storage services as needed to supplement its own
freezer capacity.

Local Distribution

As an extension of the company sales division, local distribution is operated 
from refrigerated warehouse facilities in Atlanta, Georgia.  This unit has 
sales representatives located in Macon, Georgia, as well as Atlanta and 
Collinsville, Alabama, and is designed to provide storage and delivery 
service for customers.


Significant Unconsolidated Subsidiaries

The Company owns a 50% interest in a joint venture, which is a fully integrated
poultry company located in Camilla, Georgia. The joint venture is growing and 
processing approximately 1,300,000 birds per week in a processing plant that 
is capable of processing up to 1,400,000 broilers per week. The Company also 
owns a minority interest in a poultry by-product company. In December 1995, the
Company acquired a 1/3 interest in a grower housing financing company.  The 
financing company finances poultry houses for growers in the South Georgia area
who are contract growers for the joint venture company.  In November, 1997 a 
Joint Venture poultry company was formed in Kentucky and the company became a 
minority member.

<PAGE>

Executive Offices

The Company's executive offices are located in a renovated two-story
(22,000-square-foot) building at 2000 Hills Avenue, NW, Atlanta, Georgia.  
The building is owned by the Company.

All of the properties described above are in good condition and are adequate 
for their stated uses.

                        Item 3:  Legal Proceedings

The Company is involved in various lawsuits and legal matters on an ongoing
basis as a result of its day-to-day operations; however, the Company does not
believe that the ultimate resolution of these matters will have a material
adverse effect on the Company or its business.

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

No matters were submitted to security holders for a vote during the fourth
quarter of fiscal 1998.



                                     PART II

               Item 5:  Market for Registrant's Common Equity
                        and Related Stockholder Matters

The information required by this item is included in the Company's Annual 
Report to Stockholders for the year ended March 28, 1998 and is incorporated
herein by reference.


                       Item 6:  Selected Financial Data

The information required by this item is included in the Company's Annual 
Report to Stockholders for the year ended March 28, 1998 and is incorporated
herein by reference.


            Item 7:  Management's Discussion and Analysis of
                     Financial Condition and Results of Operations

The information required by this item is included in the Company's Annual 
Report to Stockholders for the year ended March 28, 1998 and is incorporated
herein by reference.

<PAGE>

             Item 8:  Financial Statements and Supplementary Data

The information required by this item is included in the Company's Annual 
Report to Stockholders for the year ended March 28, 1998 and is incorporated
herein by reference.

            Item 9:  Changes in and Disagreements With Accountants
                     on Accounting and Financial Disclosure

None.



                                    PART III

           Item 10:  Directors and Executive Officers of the Registrant

The information required by this item is included in the Company's Proxy
Statement for the Annual Meeting of Stockholders to be held July 10, 1998 and 
is incorporated herein by reference.

                    Item 11:  Executive Compensation

The information required by this item is included in the Company's Proxy
Statement for the Annual Meeting of Stockholders to be held July 10, 1998 and
is incorporated herein by reference.

     Item 12:  Security Ownership of Certain Beneficial Owners and Management

The information required by this item is included in the Company's Proxy
Statement for the Annual Meeting of Stockholders to be held July 10, 1998 and
is incorporated herein by reference.

           Item 13:  Certain Relationships and Related Transactions

The information required by this item is included in the Company's Proxy
Statement for the Annual Meeting of Stockholders to be held July 10, 1998 and
is incorporated herein by reference.



                                      PART IV

   Item 14:  Exhibits, Financial Statement Schedules, and Reports on Form 8-K

The following documents are filed as part of this report:

(a)1.   Financial Statements


The Company's 1998 Annual Report to Stockholders contains the consolidated
balance sheets as of March 28, 1998 and March 29, 1997, the related consolidated
statements of income, stockholders' equity, and cash flows for each of the 
three years in the period ended March 28, 1998, and the related report of 
Arthur Andersen LLP as to these financial statements.  These financial
statements and the report of Arthur Andersen LLP are incorporated herein by
reference. 
The financial statements, incorporated by reference, include the following:

	Consolidated Balance Sheets_March 28, 1998 and March 29, 1997

<PAGE>

	Consolidated Statements of Income for the Years Ended 
         March 28, 1998, March 29, 1997, and  March 30, 1996

	Consolidated Statements of  Stockholders' Equity for the Years Ended 
 .        March 28, 1998, March 29, 1997, and March 30, 1996

	Consolidated Statements of Cash Flows for the Years Ended 
 .        March 28, 1998, March 29, 1997, and March 30, 1996


	Notes to Consolidated Financial Statements for the Years Ended
 .        March 28, 1998, March 29, 1997, and March 30, 1996

         
(a)2.   Financial Statement Schedules

The financial statement schedules have been omitted because they are not
applicable or the required information is included in the consolidated 
financial statements or notes thereto.

(a)3     Exhibits

8.1 audited financial statements of unconsolidated affiliate.

Reports on Form 8-K

No reports on Form 8-K were filed.


<PAGE>


Signatures

Pursuant to the requirements of Section 13 or 15(d) 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.

Cagle's, Inc.

BY:   /s/  J. Douglas Cagle
          J. Douglas Cagle
          Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
is signed below by the following persons on behalf of the registrant and in 
capacities and on the date indicated:

 /s/ J.Douglas Cagle        Chairman and Director and	Chief Executive Officer

 /s/ Kenneth R. Barkley     Senior Vice President Finance/Treasurer/Chief
                            Financial Officer/Director/Principle Financial
                            and Accounting Officer

 /s/ G. Bland Byrne         Director

 /s/ George Douglas Cagle   Vice President, New Product Development 
                            and Director

 /s/ John J. Bruno          Senior Vice President Sales Marketing and Director

 /s/ James David Cagle      Vice President, New Product Sales and Director

 /s/ Jerry D. Gattis        President, Chief Operating Officer and Director

 /s/ Mark M. Ham IV         Vice President, Information Systems and Director

 /s/ Candace Chapman        Director

<PAGE>