<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 December 28, 1997 and December 29, 1996, and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<MULTIPLIER>                                   1,000

<S>                             <C>                           <C>
<PERIOD-TYPE>                   12-MOS                        12-MOS
<FISCAL-YEAR-END>                     DEC-28-1997             DEC-29-1996
<PERIOD-START>                        DEC-30-1996             JAN-01-1996
<PERIOD-END>                          DEC-28-1997             DEC-29-1996
<CASH>                                      5,388                   3,934
<SECURITIES>                                    0                       0
<RECEIVABLES>                               1,949<F1>               2,135<F1>
<ALLOWANCES>                                    0                       0
<INVENTORY>                                 1,052                     794
<CURRENT-ASSETS>                           10,968                  10,416
<PP&E>                                     68,067<F2>              69,806<F2>
<DEPRECIATION>                                  0                       0
<TOTAL-ASSETS>                            134,297                 112,258
<CURRENT-LIABILITIES>                      21,777                  19,968
<BONDS>                                     4,017                   4,775
<PREFERRED-MANDATORY>                           0                       0
<PREFERRED>                                    50                       0
<COMMON>                                    2,484                   2,079
<OTHER-SE>                                 39,024                  17,286
<TOTAL-LIABILITY-AND-EQUITY>              134,297                 112,258
<SALES>                                   139,350                 156,445
<TOTAL-REVENUES>                          144,930                 162,752
<CGS>                                     123,924                 140,481
<TOTAL-COSTS>                             141,452                 158,642
<OTHER-EXPENSES>                             (50)                   (565)
<LOSS-PROVISION>                              158                      20
<INTEREST-EXPENSE>                          7,431                   8,622
<INCOME-PRETAX>                           (4,061)                 (3,967)
<INCOME-TAX>                                  455                   (675)
<INCOME-CONTINUING>                       (4,516)                 (3,292)
<DISCONTINUED>                                  0                       0
<EXTRAORDINARY>                                 0                   5,280
<CHANGES>                                       0                       0
<NET-INCOME>                              (4,516)                   1,988
<EPS-PRIMARY>                               (.22)                     .12
<EPS-DILUTED>                               (.22)                     .12


<FN>
Footnotes:
<F1>
(1)  Receivables consists of --
     Accounts Receivable                   $1,555                $1,698
     Royalties Receivable                     394                   437
                                      ----------------------------------
     Total                                 $1,949                $2,125
                                      ==================================
<F2>
(2)  PP&E is net of accumulated depreciation and amortization of $45,001 and
     $39,188, respectively
</FN>


</TABLE>