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, 1997.          
                                   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)

                               (787)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 24,1997
: 1,401,162







                       PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL INFORMATION



                            SWISS CHALET, INC.
                      CONDENSED STATEMENTS OF INCOME
              FOR THE NINE MONTHS ENDED JANUARY 1997 AND 1996    

                           (UNAUDITED) - NOTE A


                      NINE MONTHS ENDED         THREE MONTHS ENDED
                          JANUARY 31                 JANUARY 31
                       1997        1996          1997        1996
                    _____________________    _______________________

Net Sales and       $3,796,588    $3,510,054  $1,304,885   $1,354,365
Other Income


COST AND EXPENSES

Cost of Sales           57,375        64,179      13,722      22,587

Operating Expenses   2,670,449     2,546,233     917,693     916,423       
and other deductions     

Interest Expense          -             -            -           -     

NET INCOME          $1,068,764       899,642     373,470     415,355



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

NET INCOME PER SHARE    0.76c         0.64c       0.27c        0.30c 

                                                                           







                                    -1- 


               
                            SWISS CHALET, INC.
                          CONDENSED BALANCE SHEET
                             JANUARY 31, 1997
                           (UNAUDITED) - NOTE A

                                                  JANUARY 31
                                                    1997
                                                  __________
ASSETS


CURRENT ASSETS
     Cash and Cash equivalents                    $1,477,855     
     C.D. (over 3 months)                                  0     
     Accounts Receivable, Net                        391,074     
     Inventories                                      10,275
     Other Current Assets                             67,463
                                                  __________
TOTAL CURRENT ASSETS                              $1,946,667

INVESTMENT IN TREASURY BILLS                         996,357

                    
INVESTMENT IN CONDOMINIUM AND LAND                 
PROPERTY, PLANT AND EQUIPMENT, Net                 3,001,192

OTHER ASSETS                                          54,816
                                                  __________
TOTAL ASSETS                                      $5,999,032
                                                  _________ 
                                             
LIABILITIES AND SHAREHOLDER'S EQUITY

CURRENT LIABILITIES

     Accounts Payable and Accrued Expenses        $  531,335
     Dividends Payable                                84,519 
                                                  __________
TOTAL CURRENT LIABILITIES                         $  615,854

Deferred Compensation Liability                       46,800   

SHAREHOLDER'S EQUITY,

     Common Stock at stated value                 $  700,581
     Additional paid in capital                       24,069
     Retained Earnings                             4,611,728
                                                  __________
                                                  $5,336,378
                                                  __________
TOTAL LIABILITIES                                 $5,999,032
                                                  __________

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                            SWISS CHALET, INC.

               CONDENSED STATEMENTS OF CHANGES IN CASH FLOWS
                                     
            FOR THE NINE MONTHS ENDED JANUARY 31, 1997 AND 1996
                                     
                           (UNAUDITED) - NOTE A



                                             NINE MONTHS ENDED
                                                JANUARY 31
                                             1997             1996
                                                     
Cash Flow from Operations :
                                            
     Net Income                         $ 1,068,764      $   899,642        
               
     Adjustments (net)                       68,960          249,108   
                                          ___________      _________    
Net Cash from operations                $ 1,137,724      $ 1,148,750



Cash Flow from Investing activities      (1,222,875)         519,963

Cash Flow from Financing activities      (1,177,380)      (  968,611)
                                           __________       _________

Increase/(Decrease) in Cash Flow        $(1,262,531)     $   700,152   


Cash and Cash equivalents - beginning     2,740,386        1,208,013

                                          __________      __________ 
Cash and Cash equivalents - ending      $ 1,477,855      $ 1,908,115















                                    -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, 1996.

     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 $25,000.00
for the three month period.


 













                                    -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      $ 286,534      8.2    $( 49,480) ( 3.7)

Cost of Sales                  (  6,804)   (10.6)    (  8,865) (39.2)

Operation Expenses and          124,216      4.9        1,270    0.1
Other Deductions

Interest                            -        N/A          -     N/A

Net Income                    $ 169,122     18.8    $( 41,885) (10.1)











                                    -5-



                            SWISS CHALET, INC.



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


                       Occupancy                   Average Rate
                  1996/97       1995/96          1996/97    1995/96
     
     May            66%            65%            $86.96    $85.99
     June           70%            62%             87.16     84.03
     July           70%            69%             85.35     78.64
     Aug            79%            69%             85.07     83.17
     Sept           82%            72%             87.65     83.36
     Oct            87%            67%             87.10     82.27
     Nov            71%            79%             84.87     82.58
     Dec            72%            78%             90.36     86.58
     Jan            76%            79%            108.87    105.35
 

Average 9 months    75%            71%            $89.34    $86.08
     
     The Company had an disappointing third quarter as occupancy levels
were not able to sustain the growth of the first two quarters and, in fact,
fell in each of the three months. Average Daily Rates reflected the modest
increases built into our rate structure. 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 and, in addition to labor costs, the Company has been
very successful in keeping expenses under control. 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. Although working capital decreased over the nine month
period by $325,529 this was primarily due to a change in investment policy
from short to longer term instruments.  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 :02/24/97                     BY:__________________________
                                   PETER D. SOMECH
                                   Treasurer, Director and
                                   Principal Financial Officer























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