FORM 10-QSB
                    SECURITIES AND EXCHANGE COMMISSION           
                             WASHINGTON, D.C. 20549    

          ( X ) Quarterly Report Under Section 13 or 15(d) of
                The Securities Exchange Act of 1934

                For the Quarterly period Ended: January 31, 1996.          
                                   OR
          (  )  Transition Report Under Section 13 or 15(d)
                The Securities Exchange Act of 1934

          Commission File Number O-2825

                            SWISS CHALET, INC.
          (Exact name of Registrant as specified in its charter)

          COMMONWEALTH OF PUERTO RICO          66-020-0307
          (State or other jurisdiction of    (I.R.S. Employer
          Incorporation or Organization)      Identification No.)

                            105 De Diego Avenue
                       Santurce, Puerto Rico  00911
           (Address of principal executive offices)   (Zip Code)

                               (809)721-1200
           (Registrant's telephone number, including area code)

                                 Unchanged
(Former name, former address and former fiscal year, if changed since last
report)

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 requirements for the past 90 days.

Yes__X___ No ______

Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Sections 12,13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court.

Yes__X___ No______

Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock as of the latest practical date :

Number of shares of Common Stock outstanding at February 15,1996: 1,401,162







                       PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL INFORMATION



                            SWISS CHALET, INC.
                      CONDENSED STATEMENTS OF INCOME
              FOR THE NINE MONTHS ENDED JANUARY 1996 AND 1995    

                           (UNAUDITED) - NOTE A


                         NINE MONTHS ENDED      THREE MONTHS ENDED
                            JANUARY 31               JANUARY 31
                         1996      1995        1996         1995
                         ________________    _______________________

Net Sales and       $3,510,054    $3,144,831  $1,354,365  $1,212,677
Other Income           


COST AND EXPENSES

Cost of Sales           64,179        60,772      22,587      19,533

Operating Expenses   2,546,233     2,475,875     916,423     851,903       
and other deductions     

Interest Expense          -             -            -           -     

NET INCOME          $  899,642       608,184     415,355     341,241



Weighted Average     1,401,162     1,401,162   1,401,162    1,401,162
Number of Common
Shares Outstanding

NET INCOME PER SHARE     0.64c         0.43c       0.30c       0.24c 

                                                                           







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                            SWISS CHALET, INC.
                          CONDENSED BALANCE SHEET
                             JANUARY 31,1996
                           (UNAUDITED) - NOTE A

                                                  JANUARY 31
                                                    1996
                                                  __________
ASSETS


CURRENT ASSETS
     Cash and Cash equivalents                    $1,908,115     
     C.D. (over 3 months)                             96,000     
     Accounts Receivable, Net                        377,231     
     Inventories                                      38,314
     Other Current Assets                             47,801
                                                  __________
TOTAL CURRENT ASSETS                              $2,467,461

INVESTMENT IN CONDOMINIUM AND LAND                 
PROPERTY, PLANT AND EQUIPMENT, Net                 2,918,801

OTHER ASSETS                                          41,391
                                                  __________
TOTAL ASSETS                                      $5,427,653
                                                  __________

LIABILITIES AND SHAREHOLDER'S EQUITY


CURRENT LIABILITIES

     Accounts Payable and Accrued Expenses        $  578,014
     Dividends Payable                                71,145
                                                  __________
TOTAL CURRENT LIABILITIES                         $  649,159

Deferred Compensation Liability                       28,400   

SHAREHOLDER'S EQUITY,

     Common Stock at stated value                 $  700,581
     Additional paid in capital                       24,069
     Retained Earnings                             4,025,444
                                                  __________
                                                  $4,750,094
                                                  __________
TOTAL LIABILITIES                                 $5,427,653
                                                  __________


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                            SWISS CHALET, INC.

               CONDENSED STATEMENTS OF CHANGES IN CASH FLOWS
                                     
            FOR THE NINE MONTHS ENDED JANUARY 31, 1996 AND 1995
                                     
                           (UNAUDITED) - NOTE A



                                                NINE MONTHS ENDED
                                                   JANUARY 31
                                             1996             1995
                                   
Cash Flow from Operations :

     Net Income                         $  899,642        $ 608,184
     Adjustments (net)                     249,108           92,096 
                                        __________         _________
     Net Cash from operations           $1,148,750        $ 700,280



Cash Flow from Investing activities        519,963          (64,361)

Cash Flow from Financing activities      ( 968,611)       ( 830,429)
                                         __________       _________


Increase/(Decrease) in Cash Flow        $  700,102       $ (194,510)


Cash and Cash equivalents - beginning    1,208,013        1,039,708

                                        __________        _________
Cash and Cash equivalents - ending      $1,908,115       $  845,198















                                    -3-

     
                            SWISS CHALET, INC.
            NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)



NOTE A  - BASIS OF PRESENTATION

     The accompanying unaudited Condensed Financial Statements have been
prepared in accordance with the instructions to Form 10-QSB and, therefore,
do not include all information and footnotes necessary for a fair
presentation of financial position in conformity with generally accepted
accounting principles. The unaudited Condensed Financial Statements contain
all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of Management, necessary to a fair statement of the
results for the period presented. The interim results are not necessarily
indicative of the results which may be expected for the full year. The
subject Condensed Financial Statements should be read in conjunction with
the summary of significant accounting policies set forth in Note 1 to the
Financial Statements included in the Company's Annual Report to
Shareholders for the year ended April 30, 1995.

     Depreciation of the original building is spread over a 50 year life
while equipment is depreciated over useful lives ranging from 5 to 10 years
depending on its type.

 
NOTE B  - PROVISIONS FOR INCOME TAX


     Local Income Tax is not provided for until the year end. however, if
such provision had been made it would have amounted to less than $20,000.00
for the three month period.


NOTE C  - REPAYMENT OF LONG TERM DEBT


     Even through the outstanding debt with the Government Development Bank
and PRIDCO was to be amortised monthly until 1995 the Company elected to
make early repayment on September 1, 1993 thus avoiding further interest at
10%.







                                    -4-





PART I


                            SWISS CHALET, INC.



ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS



     The following is Management's discussion and analysis of certain
significant factors which have affected the Company's earnings during the
periods included in the accompanying Condensed Statements of Income.

     A summary of the period to period changes in the principal items
included in the Condensed Statement of Income is shown below:





                              NINE MONTHS ENDED   THREE MONTHS ENDED
                                 JANUARY 31          JANUARY 31

                                 INCREASE            INCREASE
                                (DECREASE)   %      (DECREASE)   %
                              _______________________________________

Net Sales & Other Income      $ 365,223     11.6    $ 141,688   11.7

Cost of Sales                     3,407      0.5        3,054   15.6 

Operation Expenses and           70,538      2.8       64,520    7.6
Other Deductions

Interest                            -        N/A          -     N/A

Net Income                      291,458     47.9       74,114   21.7 











                                    -5-



                            SWISS CHALET, INC.



     The comparative table of occupancies and average rates is shown below
for the nine month period.


                       Occupancy                       Average Rate
                  1995/96         1994/95        1995/96    1994/95  
     
     May            65%            65%            $85.99    $81.25
     June           62%            64%             84.03     82.46
     July           69%            57%             78.64     80.26
     Aug            69%            59%             83.17     82.23
     Sept           72%            57%             83.36     81.92
     Oct            67%            64%             82.27     77.24
     Nov            79%            68%             82.58     83.06
     Dec            78%            69%             86.58     85.64
     Jan            79%            75%            105.35    101.28

Average 9 months    71%            64%            $86.08    $84.82

     
     The Company had another excellent quarter recording sales increases in
each of the three months maintaining the trend established in the previous
quarter. The three year contract with union employees signed in December
'94 containing average increases of less than 3% over the contract period
has helped the Company to remain competitive in its market segment. In
addition to labor costs the Company has been very successful in keeping
expenses under control and, as a result, a considerable proportion of the
sales increase has been reflected in the bottom line. As mentioned in
earlier reports the Company has eliminated all long term debt and interest
expense due to the strong cash flows generated from operations.

     The Company's primary source of working capital is from funds provided
from operations. Working capital increased over the nine month period by
$904,910 and, as mentioned above, all long term debt has been repaid. The
Company believes that it's excess cash from operations will be sufficient
to finance it's long and short term capital needs including the payment of
accrued dividends.


PART II


6.   EXHIBITS AND REPORTS ON FORM 8K

     NONE


                                    -6-



                            SWISS CHALET, INC.

                                SIGNATURES   



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




                                   SWISS CHALET, INC.







DATE :02/28/96                     BY:__________________________
                                   PETER D. SOMECH
                                   Treasurer, Director and
                                   Principal Financial Officer


























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