<PAGE>   1

                                  United States

                       Securities and Exchange Commission

                              Washington, DC 20549

                                    FORM 10-Q

               Quarterly Report Pursuant to Section 13 or 15(d) of

                       the Securities Exchange Act of 1934

                  For the Quarterly Period Ended March 29, 1998

                         Commission file number 0-19924

                      RARE Hospitality International, Inc.
             (Exact name of registrant as specified in its charter)

               Georgia                                58-1498312
   --------------------------------------------------------------------
   (State or other jurisdiction of                (I. R. S. Employer
    incorporation or organization)                Identification No.)

   8215 Roswell RD; Bldg 200;      Atlanta, GA                30350
 ------------------------------------------------------------------------
   (Address of principal executive offices)                (Zip Code)

                                (770) 399-9595
                                --------------
             (Registrant's telephone number, including area code)

  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.

                                                      XX 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 as of May 8, 1998
          -----                         -----------------------------
   Common Stock, no par value                     12,008,608 shares

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                         Part I. Financial Information
                          Item 1. Financial Statements

                      RARE Hospitality International, Inc.
                           Consolidated Balance Sheets
                                 (In thousands)

<TABLE>
<CAPTION>

                                                     (unaudited)
               Assets                     12/28/97      03/29/98
               ------                     --------      --------
<S>                                       <C>           <C>     
Current assets:
   Cash and cash equivalents              $  1,752      $  6,851
   Marketable debt securities                  609           609
   Accounts receivable                       2,054         1,921
   Inventories                               9,152         9,081
   Prepaid expenses                          1,373           959
   Pre-opening costs, net of
     accumulated amortization                3,385         2,382
   Refundable income taxes                   6,900         4,900
                                          --------      --------
      Total current assets                  25,225        26,703

Property and equipment, less
   accumulated depreciation and
   amortization                            155,758       156,869
Goodwill, less accumulated
  amortization                               5,304         5,236
Deferred income taxes                        4,408         3,397
Other                                        2,356         2,191
                                          --------      --------
      Total assets                        $193,051      $194,396
                                          ========      ========

Liabilities and Shareholders' Equity
------------------------------------
Current liabilities:
   Accounts payable                       $ 12,739      $  6,276
   Accrued expenses                         14,873        18,416
   Current installments of
    obligations under capital leases           518           518
                                          --------      --------
      Total current liabilities             28,130        25,210

Long-term debt                              43,000        43,000
Obligations under capital leases,
  net of current installments                5,051         5,004
                                          --------      --------
      Total liabilities                     76,181        73,214
                                          --------      --------

Minority Interest                            4,890         6,223

Shareholders' equity:
   Preferred stock                              --            --
   Common stock                            103,981       104,289
   Retained earnings                         7,999        10,670
                                          --------      --------
     Total shareholders' equity            111,980       114,959
                                          --------      --------

     Total liabilities and
       shareholders' equity               $193,051      $194,396
                                          ========      ========
</TABLE>

  See accompanying notes to consolidated financial statements.

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                      RARE Hospitality International, Inc.
                      Consolidated Statements of Earnings
            For the Quarters Ended March 30, 1997 and March 29, 1998
                     (In thousands, except per share data)
                                  (unaudited)

<TABLE>
<CAPTION>

Revenues:                                         1997         1998
                                                -------      -------
<S>                                             <C>          <C>    
  Restaurant sales:
    LongHorn Steakhouse                         $41,177      $52,865
    Bugaboo Creek Steak House                    11,226       12,499
    The Capital Grille                            8,205       11,861
    Specialty concepts                            2,715        1,551
                                                -------      -------
      Total restaurant sales                     63,323       78,776
    Franchise revenues                               27           --
                                                -------      -------
      Total revenues                             63,350       78,776
                                                -------      -------

Costs and expenses:
Cost of restaurant sales                         22,749       29,288
Operating expenses - restaurants                 28,148       34,648
Depreciation and amortization - restaurant        3,525        4,520
General and administrative expenses               4,338        5,328
                                                -------      -------
   Total costs and expenses                      58,760       73,784
                                                -------      -------

   Operating income                               4,590        4,992

Interest expense, net                               150          764
Minority interest                                   339          407
                                                -------      -------
   Earnings before income taxes                   4,101        3,821

Income taxes                                      1,230        1,150
                                                -------      -------

   Net earnings                                 $ 2,871      $ 2,671
                                                =======      =======

Basic earnings per common share                 $  0.25      $  0.22
                                                =======      =======

Diluted earnings per common share               $  0.24      $  0.22
                                                =======      =======
</TABLE>


See accompanying notes to consolidated financial statements.

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                      RARE Hospitality International, Inc.

                       Statement of Shareholders' Equity
                      for the Quarter Ended March 29, 1998
                                  (unaudited)

<TABLE>
<CAPTION>

                                                                         
                                     Common Stock                         Total
                                     ------------          Retained    shareholders'
                                 Shares        Amount      earnings       equity
                                 ------        ------      --------       ------

<S>                              <C>         <C>           <C>         <C>     
Balances, December 28, 1997      11,979      $103,981      $ 7,999      $111,980
Net earnings                         --            --        2,671         2,671
Issuance of shares pursuant
  to exercise of stock
  options                            29           308           --           308
                                 ------      --------      -------      --------

Balances, March 29, 1998         12,008      $104,289      $10,670      $114,959
                                 ======      ========      =======      ========

</TABLE>

     See accompanying notes to consolidated financial statements.

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                      RARE Hospitality International, Inc.
                     Consolidated Statements of Cash Flows
            For the Quarters Ended March 30, 1997 and March 29, 1998
                                 (In thousands)
                                  (unaudited)

<TABLE>
<CAPTION>

                                                              1997          1998
                                                            -------       -------
<S>                                                         <C>           <C>    
Cash Flows From operating activities:
   Net earnings                                             $ 2,871       $ 2,671
   Adjustments to reconcile Net Earnings to net cash
     provided by operating activities:
     Depreciation and amortization                            3,614         4,730
     Changes in working capital accounts                     (2,535)       (2,887)
     Minority interest                                          339           407
     Preopening costs                                          (686)         (319)
     Deferred tax (benefit) expense                             501         1,011
                                                            -------       -------
       Net cash provided by (used in) operating
       activities                                             4,104         5,613
                                                            -------       -------

Cash flows from investing activities:
  Proceeds from maturity of marketable debt securities          253            --
  Purchase of property and equipment                         (6,739)       (4,451)
  Asset acquisitions                                         (2,016)           --
                                                            -------       -------
      Net cash used in investing activities                  (8,502)       (4,451)
                                                            -------       -------

Cash flows from financing activities:
  Proceeds from (repayments of)lines of credit                5,000            --
  Proceeds from minority partners' contributions                524         1,644
  Distributions to minority partners                           (894)         (718)
  Increase in bank overdraft included in accounts
    payable                                                   1,492         2,750
  Principal payments on capital leases                           --           (47)
  Proceeds from exercise of stock options                        72           308
                                                            -------       -------
    Net cash provided by financing activities                 6,194         3,937


Net increase in cash and cash equivalents                     1,796         5,099
Cash and cash equivalents, beginning of period                6,478         1,752
                                                            -------       -------
Cash and cash equivalents, end of period                    $ 8,274       $ 6,851
                                                            =======       =======
</TABLE>


       See accompanying notes to consolidated financial statements.

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RARE Hospitality International, Inc.

                   Notes to Consolidated Financial Statements
                                   (unaudited)

1. Basis of Presentation

The consolidated financial statements of RARE Hospitality International, Inc.
(the "Company") as of December 28, 1997 and March 29, 1998 and for the quarters
ended March 29, 1998 and March 30, 1997 have been prepared by the Company,
pursuant to the rules and regulations of the Securities and Exchange Commission.
The information furnished herein reflects all adjustments (consisting of normal
recurring accruals and adjustments) which are, in the opinion of management,
necessary to fairly present the operating results for the respective periods.
Certain information and footnote disclosures normally presented in annual
financial statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to such rules and regulations. These
financial statements should be read in conjunction with the consolidated
financial statements and notes thereto contained in the Company's annual report
for the year ended December 28, 1997.

Certain prior year amounts in the accompanying consolidated financial statements
have been reclassified to conform to the current year presentation.

2. Income Taxes

   Income tax expense for the quarter has been provided for based on the
estimated effective tax rate expected to be applicable for the full 1998 fiscal
year. The effective income tax rate of 30.1% for the quarter ended March 29,
1998 differs from applying the statutory federal income tax rate of 34% to
pre-tax income primarily due to employee FICA tip tax credits (a reduction in
income tax expense) offset by state income taxes.

3. Long-Term Debt

At March 29, 1998, $43.0 million was outstanding under the Company's $60.0
million revolving credit agreement at a weighted average interest rate equal to
6.6875%.

4. Earnings Per Share

Basic earnings per share is equal to net earnings divided by the weighted
average number of common shares outstanding for the quarter. Diluted earnings
per share is equal to net earnings divided by the weighted average number of
common shares outstanding for the quarter, after giving effect to dilutive stock
options. The number of shares used in the basic earnings per common share
calculation for the quarters ended March 29, 1998 and March 30, 1997 was
11,981,000 and 11,661,000, respectively. The number of shares used for the
diluted earnings per share calculation for the quarters ended March 29, 1998 and
March 30, 1997 was 11,990,000 and 11,727,000, respectively.

5. Comprehensive Income

In 1997, the Financial Accounting Standards Board (the "FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 130 "Reporting Comprehensive
Income." SFAS No. 130, which is effective for the Company's fiscal 1998,
establishes standards for reporting and display of comprehensive income and its
components in a full set of general-purpose financial statements. Comprehensive
income is defined as the change in equity of a business enterprise during a
period from transactions and other events and circumstances from nonowner
sources. It includes all changes in equity during a period, except those
resulting from investments by owners and distributions to owners. For the
quarter ended March 29, 1998, there were no differences between the Company's
net income and comprehensive income.


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Item 2.

                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations


RESULTS OF OPERATIONS

Quarter ended March 29, 1998 compared to quarter ended March 30, 1997

REVENUES

The Company currently derives all of its revenues from restaurant sales. Total
revenues increased 24.4% to $78.8 million for the first quarter of 1998 compared
to $63.4 million for the first quarter of 1997.

LongHorn Steakhouse:

Sales in the LongHorn Steakhouse restaurants increased 28.4% to $52.9 million
for the first quarter of 1998 compared to $41.2 million for the first quarter of
the prior year. The increase reflects a 21.4% increase in restaurant weeks in
the first quarter as compared to the same period of the prior year, resulting
from an increase in the restaurant base from 79 LongHorn Steakhouse restaurants
at the end of the first quarter of 1997 to 95 at the end of the first quarter of
1998. Average weekly sales for all LongHorn Steakhouse restaurants in the first
quarter of 1998 were $42,900, a 5.7% increase over the comparable period in
1997. Same store sales for the 64 comparable LongHorn Steakhouse restaurants
increased 5.2% in the first quarter of 1998 as compared to the same period in
1997, primarily due to an increase in customer counts. Same store sales for the
quarter ended March 29, 1998 consists of sales at restaurants opened prior to
July 1, 1996.

Bugaboo Creek Steak House:

Sales in the Bugaboo Creek Steak House restaurants increased 11.3% to $12.5
million for the first quarter of 1998 compared to $11.2 million for the same
period in 1997. Average weekly sales for all Bugaboo Creek Steak House
restaurants in the first quarter of 1998 were $60,100, a 2.6% decrease from the
comparable period for 1997. Same store sales for the 14 comparable Bugaboo Creek
Steak House restaurants in the first quarter of 1998 decreased 6.5% as compared
to the same period in 1997, primarily due to a decrease in customer counts. The
percentage rate of decrease in average weekly sales was less than the percentage
decrease in same store sales due to the higher than system average sales volumes
for the two Bugaboo Creek Steak House restaurants that opened during 1997.



The Capital Grille:

Sales in The Capital Grille restaurants increased 44.6% to $11.9 million for the
first quarter of 1998 compared to $8.2 million for the same period in 1997. The
increase reflects a 60.5% increase in restaurant weeks in the first quarter of
1998 as compared to the same period in 1997, resulting from an increase in the
restaurant base from seven The Capital Grille restaurants at the end of the

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first quarter of 1997 to 10 restaurants at the end of the first quarter of 1998.
Average weekly sales for all The Capital Grille restaurants in the first quarter
of 1998 were $91,200, a 10.0% decrease from the comparable period in 1997. The
decrease in average weekly sales is primarily due to the lower than system
average sales volumes at one of the Company's newest The Capital Grille
restaurants, which opened in the fourth quarter of 1997. Same Store sales for
the four comparable The Same Store Capital Grille restaurants increased 5.2% in
the first quarter of 1998 as compared to the same period in 1997, which is
primarily attributable to an increase in customer counts.

Company-wide:

Franchise revenues were eliminated prior to the first quarter of 1998. During
1997, the two remaining LongHorn Steakhouse restaurants, which operated as
franchises and paid royalties, were acquired by the Company.

COSTS AND EXPENSES

Cost of restaurant sales as a percentage of restaurant sales increased to 37.2%
for the first quarter of 1998 as compared to 35.9% for the same period of 1997.
The increase was primarily due to i) lower contracted beef prices for the first
quarter of 1997 as compared to the first quarter of 1998, ii) higher average
produce prices in the first quarter of 1998 as compared to the first quarter of
1997, and iii) the waste associated with an increased emphasis on meat cutting
standards at the unit level in the LongHorn Steakhouse division. During January
1998, the Company was purchasing most of its meat at spot market prices, which
were higher than the average prices paid under contracts in place during 1997.
Effective in February 1998, the Company began purchasing meat under a new
contract at prices which reduced the cost of restaurant sales as a percentage of
restaurant sales for the remainder of the first quarter of 1998.

Restaurant operating expenses as a percentage of restaurant sales decreased to
44.0% for the first quarter of 1998 as compared to 44.5% for the same period in
1997. This was due to greater leverage of fixed and semi-fixed expenses, offset
by incremental labor. These changes primarily resulted from start-up expenses
associated with the new unit openings which occurred in the fourth quarter of
1997 and the first quarter of 1998. Restaurant depreciation and amortization
increased 28.2% to $4.5 million from $3.5 million in the corresponding period of
the prior year primarily due to the construction of new restaurants.

General and administrative expenses as a percentage of total revenues remained
flat at 6.8% for the first quarter of 1998 as compared to the corresponding
period of the prior year.

As a result of the relationships between revenues and expenses discussed above,
the Company's operating income increased to $5.0 million for the first quarter
of 1998 as compared to $4.6 million for the corresponding period of the prior
year.

Interest expense, net increased to $764 thousand in the first quarter of 1998
from $150 thousand for the same period of the prior year due to an increase in
the average balance outstanding under the Company's revolving credit agreements.

Minority interest expense increased to $407 thousand for the first quarter of
1998 from $339 thousand for the same period of the prior year due to an increase
in the number of LongHorn Steakhouse restaurants operated under joint venture
agreements.

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Income tax expense for the first quarter of 1998 was 30.1% of earnings before
income taxes. This compares to 30.0% of earnings before income taxes for the
first quarter of 1997. The Company's effective income tax rate differs from
applying the statutory federal income tax rate of 34% to pre-tax income
primarily due to employee FICA tip tax credits and state income taxes.

Net earnings decreased 7.0% to $2.7 million for the first quarter of 1998 from
net earnings of $2.9 million for the first quarter of 1997, reflecting the net
effect of the items discussed above.

Liquidity and Capital Resources:

The Company requires capital primarily for the development of new restaurants,
selected acquisitions and the remodeling of existing restaurants. During the
first quarter of 1998 the Company's principal source of working capital was cash
provided by operating activities ($5.6 million). The principal use of working
capital was related to capital expenditures ($4.5 million) for new and improved
facilities. As of March 29, 1998, $43.0 million was outstanding and $17.0
million was available under the Company's $60.0 million revolving credit
facility which, coupled with internally generated funds, should fund expansion
through 1998.

The Company intends to open approximately 8 Company-owned and joint venture
Longhorn Steakhouse restaurants, two Bugaboo Steakhouse restaurants and two The
Capital Grille restaurants in fiscal year 1998. The Company estimates that its
capital expenditures for fiscal year 1998 will be approximately $38-40 million.
This estimate of capital expenditures is a forward looking statement, and actual
capital expenditures could differ materially from this estimate due to any
number of factors, including the total number of restaurants constructed and the
ownership vs. ground lease of restaurant sites. During the first quarter of
1998, the Company opened one LongHorn Steakhouse, and closed two other
restaurants for which the Company had provided reserves in the fourth quarter of
1997.

RECENT ACCOUNTING PRONOUNCEMENTS

In June 1997, the FASB issued, SFAS No. 131 "Disclosure about Segments of an
Enterprise and Related Information." SFAS No. 131 establishes standards for the
way public business enterprises report information about operating segments in
annual financial statements and requires that those enterprises report selected
information about operating segments in interim financial reports issued to
shareholders. It also establishes standards for related disclosures about
products and services, geographic areas, and major customers. This statement is
effective for financial statements for periods beginning after December 15,
1997. In the initial year of application, comparative information for earlier
years is to be presented. This statement need not be applied to interim
financial statements in the initial year of its application, but comparative
information for interim periods in the initial year of application is to be
reported in financial statements for interim periods in the second year of
application.

The American Institute of Certified Public Accountants has issued a Statement of
Position ("SOP"), "Reporting on the Costs of Start-up Activities," which will
require all entities to expense the costs of start-up activities as incurred.
The SOP is effective for financial statements for periods beginning after
December 15, 1998. The Company is evaluating the impact of this SOP.

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Part II - Other Information

Item 6. Exhibits and Reports on Form 8-K

   (a) Exhibits Filed.

          10(p)- Employment Agreement dated

    between the Registrant and W. Douglas Benn

          27   - Financial Data Schedule (for SEC use only)

   (b) Reports filed on Form 8-K.
          None.

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.

                                     RARE Hospitality International, Inc.




Date: May 13, 1998               /s/ W. Douglas Benn
     -----------------------     -------------------
                                     W. Douglas Benn
                                     Executive Vice President and
                                     Chief Financial Officer
                                     (Principal Financial
                                     Officer and Chief
                                     Accounting Officer, and
                                     a duly authorised officer)

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