UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549
                            -------------------------


                                    FORM 10-Q


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


        For quarter ended                              Commission file number
         March 21, 2000                                     0-19907
         --------------                                     -------


                       LONE STAR STEAKHOUSE & SALOON, INC.
             (Exact name of registrant as specified in its charter)




          Delaware                                        48-1109495
          --------                                        ----------
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                      Identification Number)


                           224 East Douglas, Suite 700
                              Wichita, Kansas 67202
               (Address of principal executive offices) (Zip code)

                                 (316) 264-8899
              (Registrant's telephone number, including area code)

            Indicate  by check mark  whether  the  registrant  (1) has filed all
documents  and  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

            Indicate  the number of shares  outstanding  of each of the issuer's
classes of common stock, as of the latest practicable date.

           Class                                 Outstanding at April 14, 2000
           -----                                 -----------------------------
Common Stock, $.01 par value                            26,354,322 shares
<PAGE>
                       Lone Star Steakhouse & Saloon, Inc.

                                      Index

                                                                Page
                                                               Number
PART I.   FINANCIAL INFORMATION

Item 1.  Financial Statements

      Condensed Consolidated Balance Sheets
      at March 21, 2000 and December 28, 1999                    2

      Condensed Consolidated Statements of
      Income for the twelve weeks ended
      March 21, 2000 and March 23, 1999                          3

      Condensed Consolidated Statements of
      Cash Flows for the twelve weeks ended
      March 21, 2000 and March 23, 1999                          4

      Notes to Condensed Consolidated
      Financial Statements                                       5

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

Item 3.  Quantitative and Qualitative
      Disclosures about Market Risks                             12

PART II.  OTHER INFORMATION
Items 1 through 5 have been omitted
since the items are either inapplicable or the
answer is negative

Item 6.  Exhibits and Reports on Form 8-K                        13


                                      -1-
<PAGE>
                       LONE STAR STEAKHOUSE & SALOON, INC.
                      Condensed Consolidated Balance Sheets
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                  March 21, 2000   December 28, 1999
                                                                                                  --------------   -----------------

                                           ASSETS
<S>                                                                                                  <C>                  <C>
Current assets:
    Cash and cash equivalents                                                                        $  40,282            $  50,673
    Inventories                                                                                         12,105               11,440
    Other current assets                                                                                 6,304                7,256
                                                                                                     ---------            ---------
         Total current assets                                                                           58,691               69,369

Property and equipment, net                                                                            433,811              430,482
Intangible and other assets, net                                                                        35,337               33,682
                                                                                                     ---------            ---------
             Total assets                                                                            $ 527,839            $ 533,533
                                                                                                     =========            =========
                            LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                                                                 $  16,196            $  11,726
    Other current liabilities                                                                           39,583               37,428
                                                                                                     ---------            ---------
             Total current liabilities                                                                  55,779               49,154


Long-term debt                                                                                           8,750                 --
Stockholders' equity:
    Preferred stock                                                                                       --                   --
    Common stock                                                                                           269                  299
    Additional paid-in capital                                                                         211,698              238,000
    Retained earnings                                                                                  261,025              253,923
    Accumulated other comprehensive loss                                                                (9,682)              (7,843)
                                                                                                     ---------            ---------
             Total stockholders' equity                                                                463,310              484,379
                                                                                                     ---------            ---------
             Total liabilities and stockholders' equity                                              $ 527,839            $ 533,533
                                                                                                     =========            =========
</TABLE>

                             See accompanying notes.

                                      -2-
<PAGE>
                       LONE STAR STEAKHOUSE & SALOON, INC.
                   Condensed Consolidated Statements of Income
                  (In thousands, except for per share amounts)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      For the twelve weeks ended
                                                               --------------------------------------
                                                               March 21, 2000          March 23, 1999
                                                               --------------          --------------

<S>                                                              <C>                       <C>
Net sales                                                        $139,254                  $139,938
Costs and expenses:
    Costs of sales                                                 47,657                    50,386
    Restaurant operating expenses                                  63,109                    61,630
    Depreciation and amortization                                   6,550                     7,232
                                                                 --------                  --------
Restaurant costs and expenses                                     117,316                   119,248
                                                                 --------                  --------
Restaurant operating income                                        21,938                    20,690
General and administrative expenses                                11,342                     8,289
                                                                 --------                  --------
Income from operations                                             10,596                    12,401
Other income, principally interest                                    416                       247
                                                                 --------                  --------
Income before income taxes                                         11,012                    12,648
Provision for income taxes                                          3,910                     4,867
                                                                 --------                  --------
Net income                                                       $  7,102                  $  7,781
                                                                 ========                  ========
Basic earnings per share                                         $   0.25                  $   0.21
                                                                 ========                  ========
Diluted earnings per share                                       $   0.25                  $   0.21
                                                                 ========                  ========

</TABLE>
                             See accompanying notes.

                                      -3-
<PAGE>
                       LONE STAR STEAKHOUSE & SALOON, INC.
                 Condensed Consolidated Statements of Cash Flows
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                          For the twelve weeks ended
                                                                                       ----------------------------------
                                                                                       March 21, 2000      March 23, 1999
                                                                                       --------------      --------------
<S>                                                                                      <C>                  <C>
Cash flows from operating activities:
    Net income                                                                           $  7,102             $  7,781
    Adjustments to reconcile net income to net cash provided
         by operating activities:
         Depreciation and amortization                                                      7,350                7,232
         Net change in operating assets and liabilities:
              Change in operating assets                                                      209                1,948
              Change in operating liabilities                                               6,625                2,172
                                                                                         --------             --------
Net cash provided by operating activities                                                  21,286               19,133
Cash flows from investing activities:
    Purchases of property and equipment                                                   (11,709)             (16,801)
    Other                                                                                  (2,382)                (408)
                                                                                         --------             --------
         Net cash used in investing activities                                            (14,091)             (17,209)
Cash flows from financing activities:
    Net proceeds from issuance of common stock                                               --                     12
    Common stock repurchased and retired                                                  (26,332)             (26,864)
    Proceeds from long-term borrowings                                                      8,750                 --
                                                                                         --------             --------
         Net cash used in financing activities                                            (17,582)             (26,852)
Effect of exchange rate on cash                                                                (4)                  14
                                                                                         --------             --------
    Net decrease in cash and cash equivalents                                             (10,391)             (24,914)
Cash and cash equivalents at beginning of period                                           50,673               89,847
                                                                                         --------             --------
Cash and cash equivalents at end of period                                               $ 40,282             $ 64,933
                                                                                         ========             ========

Supplemental disclosure of cash flow information:
    Cash paid for income taxes                                                           $  1,804             $  2,713
                                                                                         ========             ========
</TABLE>

                                       -4-
<PAGE>
                       LONE STAR STEAKHOUSE & SALOON, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.    BASIS OF PRESENTATION

      The unaudited  condensed  consolidated  financial  statements  include all
adjustments,  consisting  of  normal,  recurring  accruals,  which  the  Company
considers  necessary for a fair  presentation of the financial  position and the
results of  operations  for the  periods  presented.  The results for the twelve
weeks ended March 21, 2000 are not  necessarily  indicative of the results to be
expected for the full year ending  December 26, 2000.  This quarterly  report on
Form 10-Q should be read in conjunction with the Company's audited  consolidated
financial statements in its 1999 Form 10-K.


2.    COMPREHENSIVE INCOME

Comprehensive income is comprised of the following (in thousands):

                                                  For the twelve weeks ended
                                               -------------------------------
                                               March 21, 2000   March 23, 1999
                                               --------------   --------------

Net income                                       $ 7,102            $ 7,781
Foreign currency translation adjustments          (1,839)               933
                                                 -------            -------
  Comprehensive income                           $ 5,263            $ 8,714
                                                 =======            =======

3.    EARNINGS PER SHARE

      Basic  earnings  per share  amounts  are  computed  based on the  weighted
average  number  of  shares  actually  outstanding.   For  purposes  of  diluted
computations,  the number of shares  that would be issued  from the  exercise of
stock  options  has been  reduced by the number of shares  which could have been
purchased from the proceeds at the average  market price of the Company's  stock
or price of the Company's  stock on the exercise date if options were  exercised
during the period presented.

      The weighted average shares  outstanding for the periods  presented are as
follows (in thousands):

                                            For the twelve weeks ended
                                        ------------------------------------
                                        March 21, 2000        March 23, 1999
                                        --------------        --------------

Basic average shares outstanding           28,376               37,514
Diluted average shares outstanding         28,567               37,681


                                      -5-
<PAGE>
4.    LONG - TERM DEBT

      The Company has entered into a $20 million  revolving  term loan agreement
with a bank,  under which $8.75 million was  outstanding  at March 21, 2000. The
loan matures in April 2005 and requires  interest  only  payments  through April
2003, at which time the loan will convert to a term note with monthly  principal
and interest  payments  sufficient to amortize the loan over its remaining term.
The  interest  rate is at the daily prime rate as  published  in the Wall Street
Journal.  In addition,  the Company pays a facility fee of 1/4 of one percent on
the unused portion of the facility.

5.    TREASURY STOCK TRANSACTIONS

      The Board of Directors has  authorized  the Company to purchase  shares of
the  Company's  common  stock  in the open  market  or in  privately  negotiated
transactions.  Pursuant to the  authorization,  the Company purchased  2,970,600
shares of its common  stock  during the twelve  weeks ended March 21, 2000 at an
average price of $8.86 per share and 2,798,000 shares of its common stock during
the twelve  weeks ended  March 23, 1999 at an average  price of $9.60 per share.
The Company is accounting for the purchases  using the  constructive  retirement
method of accounting  wherein the aggregate par value of the stock is charged to
the  common  stock  account  and the excess of cost over par value is charged to
paid-in capital.

6.    STOCK OPTIONS

      On January 7, 2000,  the Board of  Directors  approved  the  repricing  of
options to purchase  4,591,757  shares of Common  Stock held by certain  current
employees, including officers of the Company with an exercise price in excess of
the closing  price of the  Company's  Common Stock on that date of $8.47.  Other
than the change in the exercise price, there was no other change in the terms of
the original options as granted (See Note 7).

      During the twelve weeks ended March 21, 2000,  the Company  granted  stock
options for  466,258  shares of common  stock at an exercise  price of $8.47 per
share pursuant to its 1992 stock option plan for employees.


7.    RECENTLY ISSUED ACCOUNTING STANDARDS

      In June 1998 the  Financial  Accounting  Statements  Board  (FASB)  issued
Statement of  Financial  Accounting  Standards  (SFAS) No. 133  "Accounting  for
Derivative  Instruments and Hedging Activities," which is required to be adopted
in years beginning after June 15, 2000. The statement  permits early adoption as
of the beginning of any fiscal quarter after its issuance.  The Company  expects
to adopt the new statement effective January 2, 2001. The statement will require
the Company to recognize  all  derivatives  on the balance  sheet at fair value.
Derivatives not considered hedges must be adjusted to fair value through income.
If a derivative is a hedge, depending on the nature of the hedge, changes in the
fair value of the  derivative  will either be offset  against the change in fair
value of the hedged asset,  liability or firm commitment  through  earnings,  or
recognized in other comprehensive  income until the hedged item is recognized in
earnings. The ineffective portion of a derivative's change in fair value will be
immediately recognized in earnings. The Company does not anticipate the adoption
of SFAS No. 133 will have a  significant  effect on its results of operations or
financial position.

      In March 2000,  the FASB issued  Interpretation  No. 44,  "Accounting  for
Certain  Transactions  Involving Stock  Compensation:  An  Interpretation of APB
Opinion No. 25" (the FASB  Interpretation).  The FASB Interpretation among other
things, requires that certain modifications to


                                      -6-
<PAGE>

outstanding  stock  options  as  to  a  direct  change  to  the  exercise  price
(repricings) or the number of shares or an indirect change to the exercise price
or number of shares  (sometimes  referred to as  "synthetic  pricings")  must be
accounted for using variable-award  accounting.  The FASB  Interpretation,  when
adopted,  requires  compensation  accounting  for all  awards  for  which  share
repricings  or synthetic  pricings  occurred  after  December 15, 1998.  Imputed
non-cash compensation expense is to be recognized on a prospective basis only to
the extent that the market price of the stock exceeds the stock price on July 1,
2000,  the  FASB  Interpretation's   effective  date;  consequently,   the  last
measurement  of  compensation  expense  would  occur at the date the options are
exercised.  The Company has repriced options to purchase approximately 4,740,000
shares of Common  Stock  during  fiscal  1999 and in January  2000 which will be
subject to the FASB Interpretation. The impact of the FASB Interpretation is not
currently determinable.

8.    SUBSEQUENT EVENT

In April 2000, the Board of Directors  declared the Company's  initial quarterly
cash dividend of $.125 per share payable May 10, 2000 to  stockholders of record
on April 24, 2000.





                                      -7-
<PAGE>
                       LONE STAR STEAKHOUSE & SALOON, INC.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

      The following  discussion and analysis  should be read in conjuntion  with
the  condensed  consolidated  financial  statements  including the notes thereto
included elsewhere in this Form 10-Q.

      In May 1998,  the Company  temporarily  suspended  development of new Lone
Star  restaurants  other than  properties  which had been  committed for or were
under  construction.  During  1998,  the  Company  substantially  completed  the
remodel/construction  of twelve  of these  restaurants  (including  one that was
damaged by fire and rebuilt).  The Company  opened one of these  restaurants  in
1999 and plans to open one  additional  restaurant in the summer of 2000.  There
are no  immediate  plans to open the  remaining  restaurants  until such time as
management believes the restaurants can be adequately staffed and are capable of
operating effectively and efficiently.  In addition, the Company has eight sites
available for future development, six of which are owned and two which are under
lease. During 1999, the Company closed two domestic Lone Star restaurants and in
December 1999,  decided to close an additional 24 restaurants  all of which were
closed in early  January,  2000.  There were 241  operating  domestic  Lone Star
restaurants as of March 21, 2000. In addition, licencees operate three Lone Star
restaurants in California and one in Guam.

      The  Company  is  currently  operating  four  Del  Frisco's   restaurants,
including the New York City restaurant,  which opened on March 7, 2000. There is
one Del Frisco's  restaurant under  construction in Las Vegas,  Nevada which the
Company  expects  to open in the  summer of 2000 and a  licensee  operates a Del
Frisco restaurant in Orlando, Florida.

      As of March  21,  2000  the  Company  was  operating  fourteen  Sullivan's
steakhouse  restaurants.  During 1999,  Sullivan's  steakhouse  restaurants were
opened in Denver, Colorado, Palm Desert, California and Raleigh, North Carolina.
The Company  expects to open a  Sullivan's  restaurant  in the summer of 2000 in
Tucson, Arizona.

      Although  the Company  believes  considerable  opportunities  exist in the
upscale steakhouse market, the Company has temporarily curtailed the development
of its upscale  concepts.  There are no current  commitments to open  additional
upscale  units  beyond  the  one Del  Frisco's  restaurant  and  one  Sullivan's
restaurant scheduled to open in summer of 2000.

      Internationally,  there are 40 Lone Star  Steakhouse & Saloon  restaurants
operated through a joint venture in Australia.


                                      -8-
<PAGE>
                       LONE STAR STEAKHOUSE & SALOON, INC.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS




RESULTS OF OPERATIONS

      The  following  table  sets  forth  for  the  periods  indicated  (i)  the
percentages which certain items included in the condensed consolidated statement
of income bear to net sales, and (ii) other selected operating data:

<TABLE>
<CAPTION>
                                                                                             Twelve Weeks Ended (1)
                                                                                             ----------------------
                                                                                   March 21, 2000          March 23, 1999
                                                                                   --------------          --------------
                                                                                             (dollars in thousands)
<S>                                                                                     <C>                     <C>
Income Statement Data:
      Net sales                                                                          100.0%                  100.0%
      Costs and expenses:
            Costs of sales..........................................................      34.2                    36.0
            Restaurant operating expenses...........................................      45.3                    44.0
            Depreciation and amortization...........................................       4.7                     5.2
                                                                                         -----                   -----


                 Restaurant costs and expenses......................................      84.2                    85.2
                                                                                         -----                   -----


      Restaurant operating income...................................................      15.8                    14.8
      General and administrative expenses...........................................       8.1                     5.9
                                                                                         -----                   -----



      Income from operations........................................................       7.7                     8.9
      Other income, principally interest............................................       0.3                     0.2
                                                                                         -----                   -----


      Income before provision for income taxes .....................................       8.0                     9.1
      Provision for income taxes....................................................       2.8                     3.5
                                                                                         -----                   -----


      Net income....................................................................       5.2%                    5.6%
                                                                                         =====                   =====

Restaurant Operating Data:
      Average sales per restaurant on an annualized basis (2)                           $2,003                $  1,877
      Number of restaurants at end of the period                                           300                     324
</TABLE>


(1)   The Company operates on a fifty-two or fifty-three week fiscal year ending
      the last Tuesday in December.  The fiscal quarters for the Company consist
      of accounting periods of twelve,  twelve,  twelve and sixteen or seventeen
      weeks, respectively.

(2)   Average  sales per  restaurant  on an  annualized  basis are  computed  by
      dividing a  restaurant's  total  sales for full  accounting  periods  open
      during the reporting period, and annualizing the result.




                                      -9-
<PAGE>
LONE STAR STEAKHOUSE & SALOON, INC.

TWELVE WEEKS ENDED MARCH 21, 2000 COMPARED TO TWELVE WEEKS ENDED MARCH 23, 1999
                          (DOLLAR AMOUNTS IN THOUSANDS)

      Net sales  decreased  $684 (0.5%) to $139,254  for the twelve  weeks ended
March 21, 2000  compared to $139,938  for the twelve weeks ended March 23, 1999.
The decrease was  principally  attributable to the closing of two restaurants in
fiscal 1999 and 24  restaurants  in January  2000.  The decrease  was  partially
offset by additional sales of $2,387 from one new domestic Lone Star restaurant,
two  Sullivan's  restaurants  and one new Del Frisco's  restaurant  opened since
March of 1999. Same store sales increased .5% compared with the comparable prior
year period.

      Costs of sales, primarily food and beverages, decreased as a percentage of
sales to 34.2% from 36.0% due primarily to lower prices on certain meat products
and lower prices on produce and dairy products.

      Restaurant  operating  expenses  for the twelve weeks ended March 21, 2000
increased  $1,479 from $61,630 in 1999, to $63,109 and increased as a percentage
of net sales from 44.0% to 45.3%. The increase in restaurant  operating expenses
is attributable primarily to a $1,223 increase in media advertising and a $1,066
increase in restaurant preopening expenses.  These increases were offset in part
by the  impact  of the  closed  restaurants  as well  as  decreases  to  various
operating costs including insurance and operating supplies.

      Depreciation  and  amortization  decreased  $682 in the twelve weeks ended
March 21, 2000  compared to the twelve weeks ended March 23, 1999.  The decrease
is attributable primarily to the 26 restaurants closed since March of 1999.

      General and  administrative  expenses  increased $3,053 as compared to the
same period in 1999. The increases in general and  administrative  expenses were
attributable  primarily  to increased  (1)  salaries  and wage related  expenses
reflecting the costs  associated  with the new positions added to strengthen the
Company's  corporate  infrastructure,  general salary  increases and the Company
costs related to employee  retirement  benefit  plans,  (2) increased  costs for
software  amortization and consulting costs related to the Company's information
systems and (3) increased travel costs.

      Other income,  principally interest,  for the twelve weeks ended March 21,
2000 was $416,  as compared to $247 in 1999.  The  increase is  attributable  to
better interest rates available for short term investment purposes.

      The  effective  income tax rates for the twelve weeks ended March 21, 2000
and the twelve  weeks ended  March 23, 1999 were 35.5% and 38.4%,  respectively.
The  decrease  in the  effective  tax  rate  is  primarily  attributable  to the
reduction in valuation allowances associated with Australian losses.



                                      -10-
<PAGE>
IMPACT OF INFLATION

      The  primary  inflationary  factors  affecting  the  Company's  operations
include  food and  labor  costs.  A large  number  of the  Company's  restaurant
personnel are paid at the federal and state established minimum wage levels and,
accordingly, changes in such wage levels affect the Company's labor costs. Since
the majority of personnel are tipped  employees,  minimum wage changes will have
little  effect on labor costs.  As costs of food and labor have  increased,  the
Company has historically  been able to offset these increases  through economies
of scale,  although there is no assurance  that such offsets will  continue.  To
date, inflation has not had a material impact on operating margins.

LIQUIDITY AND CAPITAL RESOURCES

      The following  table  presents a summary of the  Company's  cash flows for
each of the twelve weeks ended March 21, 2000 and March 23, 1999 (in thousands):

                                                      Twelve weeks ended
                                                      ------------------
                                                 March 21, 2000   March 23, 1999
                                                 --------------   --------------

Net cash provided by operating activities ......   $ 21,286         $ 19,133
Net cash used in investment activities .........    (14,091)         (17,209)
Net cash used in financing activities ..........    (17,582)         (26,852)
Effect of exchange rate on cash ................         (4)              14
                                                   --------         --------
Net decrease in cash ...........................   $(10,391)        $(24,914)
                                                   ========         ========

      During  the  twelve  week  period  ended  March 21,  2000,  the  Company's
investment  in property and  equipment  was $11,709  compared to $17,209 for the
same period in 1999.

      The  Company  does not  have  significant  receivables  or  inventory  and
receives  trade  credit  based  upon  negotiated  terms in  purchasing  food and
supplies.  Because funds available from cash sales are not needed immediately to
pay for food and supplies, or to finance inventory,  they may be considered as a
source of financing for non-current capital expenditures.

      At March 21, 2000,  the Company had $40,282 in cash and cash  equivalents.
The Company has entered  into a $20,000  revolving  term loan  agreement  with a
bank.  At March 21,  2000 the  Company  had  borrowed  $8,750 and had  available
borrowing  capacity of $11,250 pursuant to the revolver.  See Note 4 to Notes to
Condensed  Consolidated  Financial  Statements.  The  Company  is  not  actively
negotiating the purchase or lease of additional sites.

      The Company's  Board of Directors has authorized the purchase of shares of
the Company's  common stock from time to time in the open market or in privately
negotiated  transactions.  During  the twelve  weeks  ended  March 21,  2000 the
Company has purchased 2,970,600 shares at a cost of $26,332.

      In April  2000 the  Board of  Directors  declared  the  Company's  initial
quarterly cash dividend of $.125 per share payable May 10, 2000 to  shareholders
of record on April 24, 2000.


                                      -11-
<PAGE>
      The  Company  utilizes  derivative  financial  instruments  in the form of
commodity  futures  contracts  to manage  market  risks and reduce its  exposure
resulting  from  fluctuations  in the prices of meat. The Company uses live beef
cattle futures  contracts to accomplish  its objective.  Realized and unrealized
changes in the fair  values of the  derivative  instruments  are  recognized  in
income in the period in which the change occurs.  Realized and unrealized  gains
and  losses for the  period  were not  significant.  As of March 21,  2000,  the
Company's exposure for open positions in futures contracts was not significant.

      In March  2000,  the FASB issued  Interpretation  No. 44  "Accounting  for
Certain  Transactions  Involving Stock  Compensation:  An  Interpretation of APB
Opinion No. 25" (the FASB Interpretation).  The FASB Interpretation, among other
things, requires that certain modifications to outstanding stock options as to a
direct change to the exercise price  (repricings)  or the number of shares or an
indirect change to the exercise price or number of shares (sometimes referred to
as "synthetic pricings") must be accounted for using variable-award  accounting.
The FASB Interpretation,  when adopted, requires compensation accounting for all
awards for which share repricings or synthetic  pricings occurred after December
15,  1998.  Imputed  non-cash  compensation  expense  is to be  recognized  on a
prospective  basis only to the extent that the market price of the stock exceeds
the stock  price on July 1,  2000,  the FASB  Interpretation's  effective  date;
consequently,  the last  measurement of compensation  expense would occur at the
date the options are  exercised.  The Company has  repriced  options to purchase
approximately 4,740,000 shares of Common Stock during fiscal 1999 and in January
2000,  which  will  be  subject  to the  FASB  Interpretation  when  it  becomes
effective. The Company may incur significant volatility in reporting of earnings
in future  periods as  fluctuations  in market  prices of its  common  stock may
greatly impact reported compensation expenses on a periodic basis.


FORWARD LOOKING STATEMENTS

      This report contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities  Exchange Act of 1934,  amended.  Stockholders are cautioned that all
forward-looking  statements  involve risks and  uncertainty,  including  without
limitation,  the ability of the Company to open new restaurants,  general market
conditions,  competition  and pricing and other risks set forth in the Company's
Annual Report on Form 10-K for the fiscal year ended December 28, 1999. Although
the Company believes the assumptions  underlying the forward-looking  statements
contained herein are reasonable, any of the assumptions could be inaccurate, and
therefore,  there  can  be no  assurance  that  the  forward-looking  statements
contained in the report will prove to be accurate.



ITEM 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

                     THE COMPANY'S  EXPOSURE TO MARKET RISKS WAS NOT SIGNIFICANT
DURING THE TWELVE WEEKS ENDED MARCH 21, 2000.


                                      -12-
<PAGE>
LONE STAR STEAKHOUSE & SALOON, INC.


ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K
           (A)  EXHIBIT 27              FINANCIAL DATA SCHEDULE
                EXHIBIT 99              LOAN AGREEMENT DATED APRIL 28, 2000
                                        BETWEEN THE COMPANY AND INTRUST
                                        BANK, N.A.

           (B)  REPORTS ON FORM 8-K     NONE











                                      -13-
<PAGE>
                                   SIGNATURES

      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.

                                          Lone Star Steakhouse & Saloon, Inc.
                                           (Registrant)

      Date  May 4, 2000                   / s / Randall H. Pierce
                                          ---------------------------------
                                          Randall H. Pierce
                                          Chief Financial Officer




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