`DRAFT as of 10/21/2003 4:47 PM


                                  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
September 9, 2003                                                0-19907
-----------------                                                -------


                       LONE STAR STEAKHOUSE amp; 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 by check mark whether the Registrant is an accelerated  filer
(as defined in Rule 12b-2 of the Exchange Act.)

                                                                /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 October 17, 2003
           -----                                         20,837,479 SHARES
COMMON STOCK, $.01 PAR VALUE





                       LONE STAR STEAKHOUSE & SALOON, INC.

                                      Index

                                                                                                                                       Page
                                                                                                                                      Number
PART I.   FINANCIAL INFORMATION
          ---------------------

Item 1.  Financial Statements

      Condensed Consolidated Balance Sheets                                    2
      at September 9, 2003 and December 31, 2002

      Condensed Consolidated Statements of                                     3
      Income for the twelve weeks ended
      September 9, 2003 and September 3, 2002

      Condensed Consolidated Statements of                                     4
      Income for the thirty-six weeks ended
      September 9, 2003 and September 3, 2002

      Condensed Consolidated Statements of                                     5
      Cash Flows for the thirty-six weeks ended
      September 9, 2003 and September 3, 2002

      Notes to Condensed Consolidated                                          6
      Financial Statements

Item 2.  Management's Discussion and                                          11
Analysis of Financial Condition and
Results of Operations

Item 3. Quantitative and Qualitative                                          19
Disclosures about Market Risks

Item 4.  Controls and Procedures                                              19

PART II.  OTHER INFORMATION
          -----------------
Items 1, 2, 3, and 5 have been omitted
since the items are either inapplicable or the
answer is negative

Item 4.   Submission of Matters to a Vote of Stockholders                     20


Item 6.  Exhibits and Reports on Form 8-K                                     20


                                      -1-




                              LONE STAR STEAKHOUSE & SALOON, INC.
                             CONDENSED CONSOLIDATED BALANCE SHEETS
                                        (In thousands)
                                          (Unaudited)



                                                                        September 9, 2003   December 31, 2002
                                                                        -----------------   -----------------
              ASSETS

Current assets:
    Cash and cash equivalents                                                $  81,139           $  65,369
    Inventories                                                                 12,288              12,390
    Other current assets                                                        10,037               9,312
                                                                             ---------           ---------
         Total current assets                                                  103,464              87,071
Property and equipment                                                         522,077             520,513
Less accumulated depreciation and amortization                                (197,607)           (181,778)
                                                                             ---------           ---------
                                                                               324,470             338,735

Other assets:
    Deferred income taxes                                                       17,608              13,171
    Intangible and other assets, net                                            35,102              34,336
                                                                             ---------           ---------
             Total assets                                                    $ 480,644           $ 473,313
                                                                             =========           =========
    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                                         $  13,857           $  16,084
    Other current liabilities                                                   31,573              26,412
                                                                             ---------           ---------
             Total current liabilities                                          45,430              42,496


Long term liabilities, principally defered compensation obligations             16,620              11,058
Stockholders' equity:
    Preferred stock                                                                 --                  --
    Common stock                                                                   208                 210
    Additional paid-in capital                                                 179,854             189,908
    Retained earnings                                                          251,496             241,601
    Common stock held by Trust                                                  (3,663)                 --
    Accumulated other comprehensive loss                                        (9,301)            (11,960)
                                                                             ---------           ---------
             Total stockholders' equity                                        418,594             419,759
                                                                             ---------           ---------
             Total liabilities and stockholders' equity                      $ 480,644           $ 473,313
                                                                             =========           =========

                                    See accompanying notes.

                                       -2-



                                 LONE STAR STEAKHOUSE & SALOON, INC.
                             CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                            (In thousands, except for per share amounts)
                                           (Unaudited)

                                                                  For the twelve weeks ended
                                                           -------------------------------------------
                                                           September 9, 2003         September 3, 2002
                                                           -----------------         -----------------

Net sales                                                      $ 136,394                   $ 133,798
Costs and expenses:
    Costs of sales                                                49,460                      43,735
    Restaurant operating expenses                                 65,909                      62,817
    Depreciation and amortization                                  4,871                       5,829
                                                               ---------                   ---------
Restaurant costs and expenses                                    120,240                     112,381
                                                               ---------                   ---------
Restaurant operating income                                       16,154                      21,417
General and administrative expenses                               10,578                      10,334
Non-cash stock compensation expense                                   75                         711
                                                               ---------                   ---------
Income from operations                                             5,501                      10,372
Other income, net                                                     47                         198
                                                               ---------                   ---------
Income from continuing operations before income taxes              5,548                      10,570
Provision for income taxes                                         1,880                       2,325
                                                               ---------                   ---------
Income from continuing operations                                  3,668                       8,245
Discontinued operations:
    Loss from operations of discontinued restaurants                  (6)                        (73)
    Income tax benefit                                                 2                          26
                                                               ---------                   ---------
    Loss on discontinued operations                                   (4)                        (47)
                                                               ---------                   ---------
Net income                                                     $   3,664                   $   8,198
                                                               =========                   =========

Basic earnings per share:
    Continuing operations                                      $    0.18                   $    0.37
    Discontinued operations                                           --                          --
                                                               ---------                   ---------
    Basic earnings per share                                   $    0.18                   $    0.37
                                                               =========                   =========
Diluted earnings per share:
    Continuing operatons                                       $    0.15                   $    0.32
    Discontinued operations                                           --                          --
                                                               ---------                   ---------
    Diluted earnings per share                                 $    0.15                   $    0.32
                                                               =========                   =========

Dividends per share                                            $   0.165                   $    0.15
                                                               =========                   =========


                                    See accompanying notes.

                                       -3-



                                 LONE STAR STEAKHOUSE & SALOON, INC.
                             CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                            (In thousands, except for per share amounts)
                                             (Unaudited)


                                                                         For the thirty-six weeks ended
                                                                  --------------------------------------------
                                                                  September 9, 2003          September 3, 2002
                                                                  -----------------          -----------------

Net sales                                                              $ 424,167                   $ 420,504
Costs and expenses:
    Costs of sales                                                       148,702                     137,359
    Restaurant operating expenses                                        198,886                     188,933
    Depreciation and amortization                                         15,157                      17,621
                                                                       ---------                   ---------
Restaurant costs and expenses                                            362,745                     343,913
                                                                       ---------                   ---------
Restaurant operating income                                               61,422                      76,591
General and administrative expenses                                       31,945                      31,263
Abandoned merger expense                                                      --                       2,967
Non-cash stock compensation expense                                        1,201                       2,273
                                                                       ---------                   ---------
Income from operations                                                    28,276                      40,088
Other income, net                                                            522                         850
                                                                       ---------                   ---------
Income from continuing operations before income taxes
    and cumulative effect of accounting change                            28,798                      40,938
Provision for income taxes                                                 9,307                      13,749
                                                                       ---------                   ---------
Income from continuing operations before cumulative
    effect of accounting change                                           19,491                      27,189
Discontinued operations:
    Income (loss) from operations of discontinued restaurants                817                        (660)
    Income tax benefit (provision)                                          (286)                        237
                                                                       ---------                   ---------
    Income (loss) on discontinued operations                                 531                        (423)
                                                                       ---------                   ---------
Income before cumulative effect of accounting change                      20,022                      26,766
Cumulative effect of accounting change, net of tax                            --                        (318)
                                                                       ---------                   ---------
Net income                                                             $  20,022                   $  26,448
                                                                       =========                   =========

Basic earnings (loss) per share:
    Continuing operations                                              $    0.94                   $    1.14
    Discontinued operations                                                 0.02                       (0.02)
    Cumulative effect of accounting change                                    --                       (0.01)
                                                                       ---------                   ---------
    Basic earnings per share                                           $    0.96                   $    1.11
                                                                       =========                   =========
Diluted earnings (loss) per share:
    Continuing operatons                                               $    0.82                   $    1.00
    Discontinued operations                                                 0.02                       (0.02)
    Cumulative effect of accounting change                                    --                       (0.01)
                                                                       ---------                   ---------
    Diluted earnings per share                                         $    0.84                   $    0.97
                                                                       =========                   =========

Dividends per share                                                    $    0.48                   $    0.45
                                                                       =========                   =========

                                    See accompanying notes.

                                       -4-




                                                     LONE STAR STEAKHOUSE & SALOON, INC.
                                               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                               (In thousands)
                                                                 (Unaudited)

                                                                                   For the thirty-six weeks ended
                                                                                --------------------------------------
                                                                                September 9, 2003    September 3, 2002
                                                                                -----------------    -----------------
Cash flows from operating activities:
    Net income                                                                        $ 20,022           $ 26,448
    Adjustments to reconcile net income to net cash provided
         by operating activities:
         Depreciation and amortization                                                  17,370             20,302
         Non-cash stock compensation expense                                             1,201              2,273
         Provision for impaired assets and restaurant closings                              --                200
         Loss from sale of assets                                                          112                149
         Cumulative effect of accounting change                                             --                508
         Deferred income taxes                                                          (4,437)              (392)
         (Income) loss from discontinued operations                                       (531)               423
         Net change in operating assets and liabilities:
              Change in operating assets                                                  (549)             1,006
              Change in operating liabilities                                            4,164             (7,348)
                                                                                      --------           --------
Net cash provided by operating activities of continuing operations                      37,352             43,569
Cash flows from investing activities:
    Purchases of property and equipment                                                 (3,834)            (1,653)
    Proceeds from sale of assets                                                         1,401              2,806
    Other                                                                                  477                 53
                                                                                      --------           --------
Net cash provided by (used in) investing activities of continuing operations            (1,956)             1,206
Cash flows from financing activities:
    Net proceeds from issuance of common stock                                           5,884             22,521
    Common stock repurchased and retired                                               (18,454)           (86,301)
    Cash dividends                                                                     (10,127)           (10,572)
                                                                                      --------           --------
Net cash used in financing activities of continuing operations                         (22,697)           (74,352)
Effect of exchange rate changes on cash                                                    872                273
Net cash provided by (used in) discontinued operations                                   2,199               (187)
                                                                                      --------           --------
Net increase (decrease) in cash and cash equivalents                                    15,770            (29,491)
Cash and cash equivalents at beginning of period                                        65,369             82,919
                                                                                      --------           --------
Cash and cash equivalents at end of period                                            $ 81,139           $ 53,428
                                                                                      ========           ========

Supplemental disclosure of cash flow information:
    Cash paid for income taxes                                                        $  2,305           $ 13,997
                                                                                      ========           ========



                                    See accompanying notes.


                                       -5-



                       LONE STAR STEAKHOUSE & SALOON, INC.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

1.    BASIS OF PRESENTATION
      ---------------------

          The unaudited condensed  consolidated financial statements include all
adjustments,   consisting  of  normal,   recurring  accruals,  which  Lone  Star
Steakhouse  &  Saloon,  Inc.  (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 thirty-six weeks ended September 9, 2003
are not  necessarily  indicative of the results to be expected for the full year
ending December 30, 2003.  This quarterly  report on Form 10-Q should be read in
conjunction with the Company's audited consolidated  financial statements in its
annual report on Form 10-K for the year ended December 31, 2002.

          Certain  amounts for the prior year have been  reclassified to conform
with the current year's presentation.

2.    COMPREHENSIVE INCOME
      --------------------

Comprehensive income is comprised of the following:

                                      For the twelve weeks ended         For the thirty-six weeks ended
                                      --------------------------         ------------------------------
                                      Sept. 9, 2003   Sept. 3, 2002      Sept. 9, 2003    Sept. 3, 2002
                                      -------------   -------------      -------------    -------------
Net income                            $ 3,664             $ 8,198         $20,022            $26,448

Foreign currency translation
        adjustments                      (292)               (566)          2,659              1,116
                                      -------             -------         -------            -------
Comprehensive income                  $ 3,372             $ 7,632         $22,681            $27,564
                                      =======             =======         =======            =======


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,  average shares  outstanding  has been adjusted to reflect (1) the
number of  shares  that  would be issued  from the  exercise  of stock  options,
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  and (2) the  number  of shares  that may be  issuable  to effect  the
settlement  of  certain  deferred  compensation   liabilities  pursuant  to  the
Company's Stock Option Deferred Compensation Plan. The effect of shares issuable
to settle the  deferred  compensation  liabilities  are  included for the twelve
weeks ended  September 9, 2003 and have not been presented for any other periods
as their effect would have been anti-dilutive.

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

                                          For the twelve weeks ended           For the thirty-six weeks ended
                                          ------------------------------      -----------------------------------
                                          Sept. 9, 2003    Sept. 3, 2002      Sept. 9, 2003     Sept. 3, 2002
                                          -------------    -------------      -------------     -------------
Basic average shares outstanding               20,584         22,263            20,787           23,736
Diluted average shares outstanding             23,703         25,625            23,814           27,318



                                      -6-



4.    TERM REVOLVER
      -------------

      The  Company has a credit  facility  pursuant  to an  unsecured  revolving
credit agreement with a group of banks led by SunTrust Bank. The credit facility
allows the Company to borrow up to $50,000.  The  commitment  terminates at June
30, 2004;  however,  it is subject to  acceleration  in the event of a change of
control of the Company as that term is defined in the credit  agreement.  At the
time of each borrowing, the Company may elect to pay interest at either SunTrust
Bank's  published  prime rate or a rate  determined by reference to the Adjusted
LIBOR rate. The Company is required to achieve certain  financial  ratios and to
maintain  certain  net worth  amounts as defined  in the credit  agreement.  The
Company is required to pay on a quarterly basis a facility fee equal to .25% per
annum on the daily unused  amount of the credit  facility.  At September 9, 2003
and at December 31, 2002, there were no borrowings  outstanding  pursuant to the
credit facility.

      The Company also has entered into a $5,000  revolving  term loan agreement
with a bank, under which no borrowings were outstanding at September 9, 2003 and
at December 31, 2002.  The loan  commitment  matures in August 2004 and required
interest only payments through April 2003, at which time the loan converted to a
term note with monthly  principal and interest  payments  sufficient to amortize
the loan over its remaining  term.  The interest rate is at .50% below the daily
prime rate as published  in the Wall Street  Journal.  In addition,  the Company
pays a facility fee of .25% per annum on the daily unused  portion of the credit
facility.

5.    COMMON STOCK TRANSACTIONS
      -------------------------

      In May 2002, the Company  commenced a Modified Dutch Auction tender offer.
Under the terms of the tender offer, the Company invited  shareholders to tender
their shares at prices  specified  by the  tendering  shareholder  at a purchase
price not in excess of $22.50 nor less than $20.50 per share.  The tender  offer
was completed in June 2002,  and as a result,  the Company  purchased  4,000,000
shares of its common stock at a price of $21.375 per share.  The aggregate  cost
to repurchase the shares was $86,301 including the cost of the tender offer. The
transaction was financed from the Company's existing available cash.

      The Board of  Directors  has from time to time  authorized  the Company to
purchase shares of the Company's common stock in the open market or in privately
negotiated  transactions.  The Company  purchased  891,000  shares of its common
stock during the  thirty-six  weeks ended  September 9, 2003,  and excluding the
4,000,000 shares repurchased in the tender offer as previously  described,  made
no purchases of its common stock during the thirty-six  weeks ended September 3,
2002.  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.

      In  September   2002,  the  Company   adopted  a  Stock  Option   Deferred
Compensation  Plan (the "Plan"),  which allows  certain key  executives to defer
compensation  arising  from the  exercise  of stock  options  granted  under the
Company's  1992  Incentive  and  Nonqualified  Stock  Option  Plan.  During  the
thirty-six  weeks ended  September 9, 2003, the Company issued 300,000 shares of
its common  stock to effect the  exercise of such stock  options in exchange for
122,855  shares of the  Company's  common stock as payment for such shares.  The
122,855  shares  received  by the Company  were  cancelled.  The Company  issued
122,855  shares to the  optionee  and  pursuant  to the  terms of the Plan,  the
Company  issued 177,145 shares to a Rabbi trust (the "Trust") with Intrust Bank,
NA serving as the  trustee.  The Trust  holds the shares for the  benefit of the
participating  employees  ("Participant(s)").  Under  the  terms  of  the  Plan,
Participants may elect to change the Plan's  investments from time to time which
may result in the sale of the  shares.  Since the  shares  held by the Trust are
held pursuant to a deferred  compensation  arrangement whereby amounts earned by
an employee  are  invested in the stock of the employer and placed in the Trust,
the Company  accounts for the  arrangement  as required by Emerging  Issues Task
Force   ("EITF")   consensus  on  Issue  No.  97-14,   ACCOUNTING  FOR  DEFERRED
COMPENSATION  ARRANGEMENTS  WHERE  AMOUNTS  EARNED ARE HELD IN A RABBI TRUST AND



                                      -7-



INVESTED  ("EITF  No.  97-14").  Accordingly,  shares  issued to the Trust  were
recorded at fair market value at the date issued by the Company in the amount of
$3,663,  which is reflected in the accompanying  Condensed  Consolidated Balance
Sheets as Common Stock Held By Trust. The  corresponding  amount was credited to
deferred  compensation  obligations.  Each period, the shares owned by the Trust
are  valued at the  closing  market  price,  with  corresponding  changes in the
underlying  shares being  reflected as adjustments to  compensation  expense and
deferred compensation obligations.  At September 9, 2003, the Trust held 177,145
shares of the Company's  common stock.  Included in non-cash stock  compensation
expense for the twelve and thirty-six weeks ended September 9, 2003 was a credit
of $95 and a charge of $314,  respectively,  relating to the accounting for such
shares.

6.    STOCK BASED COMPENSATION
      ------------------------

      In December  2002,  the Financial  Accounting  Standards  Boards  ("FASB")
issued Statement of Financial  Accounting Standards ("SFAS") No. 148, ACCOUNTING
FOR STOCK BASED COMPENSATION TRANSITION AND DISCLOSURE, AN AMENDMENT OF SFAS NO.
123.  Accordingly,  effective with the first quarter of fiscal 2002, the Company
changed  its  method  of  accounting  as the  Company  adopted  the  fair  value
recognition provision of SFAS No. 123 for employee stock-based compensation. The
Company  now  values  stock  options  based  upon an  option  pricing  model and
recognizes  their value as an expense over the period in which options vest. The
Company elected to apply the retroactive  restatement method as provided in SFAS
No.  148 and as a result  all prior  periods  presented  have been  restated  to
reflect the  compensation  expense that would have been  recognized had SFAS No.
123 been applied to all awards  granted to employees  after January 1, 1995. The
effect of this change was to  decrease  net income  $5,375  ($0.24 per share for
basic earnings and $0.21 per share for diluted earnings) and increase net income
$14,017  ($0.59  per share for basic  earnings  and $0.51 per share for  diluted
earnings) for the twelve weeks and the thirty-six weeks ended September 3, 2002,
respectively.

7.    ACCOUNTING CHANGES
      ------------------

      During  the  first  quarter  of  fiscal  2002,  the  Company  adopted  the
provisions of SFAS No. 142, GOODWILL AND OTHER INTANGIBLE ASSETS, requiring that
goodwill and intangible assets deemed to have indefinite lives will no longer be
amortized. The application of the impairment provisions of SFAS No. 142 resulted
in a charge for the  cumulative  effect of an  accounting  change of $318,000 or
$0.01 per basic share, net of income taxes of $190,000, to reflect impairment of
certain goodwill related to Australian investments.

      In  August  2001,  the  FASB  issued  SFAS  No.  144,  ACCOUNTING  FOR THE
IMPAIRMENT OR DISPOSAL OF LONG-LIVED  ASSETS.  SFAS No. 144 supersedes  SFAS No.
121,  ACCOUNTING  FOR THE  IMPAIRMENT  OF LONG-LIVED  ASSETS AND FOR  LONG-LIVED
ASSETS TO BE DISPOSED OF and resolves significant implementation issues that had
evolved  since the issuance of SFAS No. 121.  SFAS No. 144  established a single
accounting model for long-lived assets to be disposed of by sale or abandonment.
Additionally,  SFAS No.  144  expanded  the scope of  financial  accounting  and
reporting  of  discontinued  operations  previously  addressed  in APB No. 30 to
require that all  components  of an entity that have either been disposed of (by
sale, by  abandonment,  or in a distribution to owners) or are held for sale and
whose operations and cash flows can be clearly distinguished,  operationally and
for  financial  reporting  purposes  from  the  rest of the  entity,  should  be
presented as  discontinued  operations.  SFAS No. 144 is effective for financial
statements  issued for fiscal years  beginning  after  December  15,  2001.  The
provisions for presenting the components of an entity as discontinued operations
are effective  only for disposal  activities  initiated by the Company after the
effective date of the Statement.  The Company adopted the provisions of SFAS No.
144,  effective  December  26,  2001.  Pursuant  to SFAS No. 144,  each  Company
restaurant is a component of the entity whose  operations  can be  distinguished
from the rest of the Company;  therefore,  when a  restaurant  is closed and the
restaurant is either held for sale or  abandoned,  the  restaurant's  operations
will be eliminated from the ongoing operations of the Company.  Accordingly, the


                                      -8-



operations  of such  restaurants,  net of  applicable  income  taxes,  have been
presented as discontinued  operations and prior period financial statements have
been reclassified.

      In June  2002,  the  FASB  issued  SFAS  No.  146,  ACCOUNTING  FOR  COSTS
ASSOCIATED  WITH EXIT OR DISPOSAL  ACTIVITIES.  This  statement  requires that a
liability for a cost associated with an exit or disposal  activity be recognized
only when the liability is incurred and measured at fair value.  SFAS No. 146 is
effective for exit or disposal activities initiated after December 31, 2002. The
Company has adopted this  Statement  effective  January 1, 2003,  and it did not
have a material impact on its results of operations or financial position.

8.    ABANDONED MERGER EXPENSES
      -------------------------

      On May 4, 2002, the non-binding  Letter of Intent  previously  signed with
Bruckmann, Rosser, Sherrill & Co., LLC ("BRS") with respect to the proposed sale
and  merger  of the  Company  expired,  as the  Company  and BRS were  unable to
complete a  definitive  agreement.  The direct  costs  incurred  by the  Company
associated with the proposed  merger,  primarily  consisting of fees paid to the
Company's  investment  advisors  and  legal  counsel  as well as  certain  costs
reimbursed  by the Company to BRS in connection  with its due diligence  efforts
pursuant  to the  terms of the  Letter  of Intent  were  expensed  and have been
included in the accompanying condensed  consolidated  statements of income under
the caption "Abandoned Merger Expenses."

9.    SUBSEQUENT EVENTS
      -----------------

      On September  25,  2003,  the Board of  Directors  declared the  Company's
quarterly  cash  dividend  of  $0.165  per share  payable  October  20,  2003 to
stockholders of record on October 6, 2003.

10.   DISCONTINUED OPERATIONS
      -----------------------

      Pursuant to the provisions of SFAS No. 144 as previously described in Note
7 to the condensed consolidated financial statements, the Company closed certain
restaurants  during the year ended  December 31, 2002 which met the criteria for
the  operations  of  the   restaurants  to  be  accounted  for  as  discontinued
operations.  In addition, the Company closed and abandoned one Australian leased
restaurant  during the twelve weeks ended  September 9, 2003.  The components of
the loss from discontinued operations are as follows:

                                   For the twelve weeks ended       For the thirty-six weeks ended
                                   ------------------------------   ------------------------------
                                   Sept. 9, 2003    Sept. 3, 2002   Sept. 9, 2003    Sept. 3, 2002
                                   -------------    -------------   -------------    -------------

Loss from operations                   $   (16)         $   (73)         $   (32)         $  (660)
Gain on disposal of assets                  10                -              849                -
Income tax benefit (provision)               2               26             (286)             237
                                   -------------    -------------   -------------    -------------

Income (loss) from
 discontinued operations               $    (4)         $   (47)         $   531          $  (423)
                                   =============    =============   =============    =============
Net sales from discontinued
 operations                            $   164          $   694          $   541          $ 2,517
                                   =============    =============   =============    =============


11.   INCOME TAX
      ----------

      The  effective  income tax rate was 33.9% and 22.0% for the  twelve  weeks
ended September 9, 2003 and September 3, 2002, respectively, and 32.3% and 33.6%
for the  thirty-six  weeks  ended  September  9,  2003 and  September  3,  2002,
respectively.  The factors  which cause the effective tax rates to vary from the
federal statutory rate of 35% include state income taxes, the impact of FICA Tip
and  other  credits,  certain  non-deductible  expenses,  and the tax  effect of
incentive  stock  options.  There is  generally  no tax  impact  to the  Company
associated with incentive stock options and the related amortization  associated


                                      -9-



with such  options in the income  statement.  However,  tax  benefits  may arise
related to the incentive  stock options at the time the options are exercised to
the extent that the exercise is followed by a  disqualifying  disposition of the
shares by the optionee.  The effective rate for the twelve weeks ended September
3, 2002 is significantly  impacted by the tax benefit arising from disqualifying
dispositions of shares related to incentive stock options.



                                      -10-



                       LONE STAR STEAKHOUSE & SALOON, INC.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
             (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

GENERAL

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

      The Company did not open any restaurants during the thirty-six weeks ended
September 9, 2003 or the year ended December 31, 2002.

      There were 249 operating domestic Lone Star restaurants as of September 9,
2003.  In  addition,   a  licensee  operates  three  Lone  Star  restaurants  in
California.  The Company  closed one domestic  Lone Star  restaurant in February
2002,  and a domestic Lone Star  restaurant  was destroyed by fire in March 2002
and was not rebuilt.

      The  Company  currently  operates  five Del  Frisco's  Double  Eagle ("Del
Frisco's")  restaurants.  In  addition,  a licensee  operates  one Del  Frisco's
restaurant.   The  Company  currently  operates  fifteen  Sullivan's  Steakhouse
("Sullivan's") restaurants and one Frankie's Italian Grille restaurant.

      Internationally,  the Company currently  operates 19 Lone Star restaurants
in Australia  and a licensee  operates  one Lone Star  restaurant  in Guam.  The
Company  closed one Lone Star  restaurant  in  Australia in August 2003 and five
Lone Star restaurants in Australia during the year ended December 31, 2002.


      The  Company's  operating  margins are impacted by the price of beef which
has increased significantly during the thirty-six weeks ended September 9, 2003.


                                      -11-



                       LONE STAR STEAKHOUSE & Saloon, Inc.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
             (Dollar amounts in thousands, except per share amounts)


RESULTS OF OPERATIONS

      The following  table sets forth for the periods  indicated the percentages
which  certain  items  included  in  the  condensed  consolidated  statement  of
operations bear to net sales.

                                                               TWELVE WEEKS ENDED (1)          THIRTY-SIX WEEKS ENDED
                                                               ----------------------------    -----------------------------
                                                               Sept. 9, 2003   Sept. 3, 2002   Sept. 9, 2003   Sept. 3, 2002
                                                               -------------   -------------   -------------   -------------

Statement of Operations Data:
      Net sales ...........................................         100.0%        100.0%          100.0%          100.0%
      Costs and expenses:
            Costs of sales ................................          36.3          32.7            35.1            32.7

            Restaurant operating expenses .................          48.3          46.9            46.9            44.9

            Depreciation and amortization .................           3.6           4.4             3.5             4.2
                                                               -------------   -------------   -------------   -------------
                  Restaurant costs and expenses ...........          88.2          84.0            85.5            81.8
                                                               -------------   -------------   -------------   -------------


      Restaurant operating income .........................          11.8          16.0            14.5            18.2

      General and administrative expenses .................           7.7           7.7             7.5             7.4
      Abandoned merger expenses ...........................             -             -               -             0.7
      Non-cash stock compensation expense .................           0.1           0.5             0.3             0.5
                                                               -------------   -------------   -------------   -------------



      Income from operations ..............................           4.0           7.8             6.7             9.6
      Other income, net ...................................           0.1           0.1             0.1             0.2
                                                               -------------   -------------   -------------   -------------


      Income from continuing operations before income taxes
        and cumulative effect of accounting change ........           4.1           7.9             6.8             9.8

      Provision for income taxes ..........................           1.4           1.7             2.2             3.3
                                                               -------------   -------------   -------------   -------------


      Income from continuing operations before cumulative
        effect of accounting change .......................           2.7           6.2             4.6             6.5

      Income (loss) from discontinued operations, net of
       applicable income taxes ............................             -          (0.1)            0.1            (0.1)
                                                               -------------   -------------   -------------   -------------

      Income before cumulative effect of accounting change            2.7           6.1             4.7             6.4
      Cumulative effect of accounting change, net of tax ..             -             -               -            (0.1)
                                                               -------------   -------------   -------------   -------------


      Net income ..........................................           2.7%          6.1%            4.7%            6.3%
                                                               =============   =============   =============   =============


(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.


                                      -12-



                      LONE STAR STEAKHOUSE & SALOON, INC.

       TWELVE WEEKS ENDED SEPTEMBER 9, 2003 COMPARED TO TWELVE WEEKS ENDED
    SEPTEMBER 3, 2002 (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

      Net sales increased  $2,596 or 1.9% to $136,394 for the twelve weeks ended
September 9, 2003,  compared to $133,798 for the twelve weeks ended September 3,
2002.  Sales were  negatively  impacted in the current  quarter by the fact that
there was a calendar shift in the timing of Father's Day, an important sales day
for domestic Lone Star  restaurants,  as Father's Day occurred during the second
quarter of 2003 and the third quarter in 2002. The decline in sales attributable
to the shift in Father's Day is estimated to be approximately  $1,800;  however,
the decline was more than offset by  increased  sales at the  Company's  upscale
restaurants  and  the  impact  of  more  favorable  foreign  exchange  rates  in
Australia.  In the aggregate,  same store sales increased 1.2% compared with the
prior year period.

      Costs of sales, primarily food and beverages, increased as a percentage of
net sales to 36.3% from 32.7% due primarily to increased beef costs.

      Restaurant operating expenses for the twelve weeks ended September 9, 2003
increased  $3,092 to $65,909  compared to $62,817 in the prior year period,  and
increased  as a  percentage  of net sales to 48.3% from 46.9%.  The  increase is
primarily attributable to (1) approximately $1,100 due to increased salaries for
increased  manager  staffing and indirect  labor for payroll  related  taxes and
insurance costs,  (2)  approximately  $410 for increased  building and equipment
repairs,  (3) approximately  $350 for increased  utilities and (4) approximately
$460 for increased advertising spending.

      Depreciation  and  amortization  decreased $958 for the twelve weeks ended
September  9,  2003  compared  with the  prior  year  period.  The  decrease  is
attributable  primarily to a reduction in  depreciation  for certain assets that
have become fully depreciated.

      General and  administrative  expenses  increased $244 for the twelve weeks
ended  September 9, 2003 compared to the prior year period.  The increase is due
primarily to increased  costs of  approximately  $890 for directors and officers
liability  insurance and travel  costs.  The  increases  were largely  offset by
reductions   in   incentive   compensation,   professional   fees  and  software
amortization expenses.

      Non-cash stock  compensation  expense for the twelve weeks ended September
9, 2003  decreased  $636  compared  to the prior year  period.  The  decrease is
primarily attributable to lower amortization of such costs.

      Other income,  net for the twelve weeks ended  September 9, 2003,  was $47
compared to $198 for the prior year period.  The decrease is  attributable  to a
decrease  in gains from sales of assets  and a decline in  interest  income as a
result of lower interest rates.

      The  effective  income tax rate was 33.9% and 22.0% for the  twelve  weeks
ended September 9, 2003 and September 3, 2002,  respectively.  The factors which
cause the  effective  tax rates to vary from the federal  statutory  rate of 35%
include state income taxes,  the impact of FICA Tip and other  credits,  certain
non-deductible expenses, and the tax effect of incentive stock options. There is
generally no tax impact to the Company  associated  with incentive stock options
and  the  related  amortization  associated  with  such  options  in the  income
statement. However, tax benefits may arise at the time the incentive options are
exercised  to the  extent  that the  exercise  is  followed  by a  disqualifying
disposition  of the shares by the optionee.  The effective tax rate for the 2002
period was  significantly  impacted by tax benefits  arising from  disqualifying
dispositions of shares related to incentive stock options for tax purposes.  The
2003  period  reflects  both a  decrease  in the  amortization  of stock  option
compensation  and a  decrease  in  tax  benefits  resulting  from  disqualifying
disposition of shares related to incentive stock options.

      Discontinued  operations  reflect the  operations  of  restaurants  closed
during the year ended December 31, 2002 and the twelve weeks ended  September 9,
2003  which are  required  to be reported as discontinued operations pursuant to


                                      -13-



SFAS No.  144.  See Note 10 to the  Notes to  Condensed  Consolidated  Financial
Statements for additional information.


                                      -14-



                      LONE STAR STEAKHOUSE & SALOON, INC.

                    THIRTY-SIX WEEKS ENDED SEPTEMBER 9, 2003
              COMPARED TO THIRTY-SIX WEEKS ENDED SEPTEMBER 3, 2002
             (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

      Net sales  increased  $3,663 or 0.9% to $424,167 for the thirty-six  weeks
ended  September 9, 2003,  compared to $420,504 for the  thirty-six  weeks ended
September 3, 2002. Same store sales increased 0.6% compared with the prior year.
The increase in net sales is primarily  attributable  to an increase in sales at
the Company's  upscale  restaurants and by the impact of more favorable  foreign
currency exchange rates in Australia.

      Costs of sales, primarily food and beverages, increased as a percentage of
net sales to 35.1% from 32.7% due primarily to increased beef costs.

      Restaurant  operating expenses for the thirty-six weeks ended September 9,
2003 increased $9,953 to $198,886 compared to $188,933 in the prior year period,
and increased as a percentage of net sales to 46.9% from 44.9%.  The increase is
primarily attributable to (1) approximately $3,200 due to increased salaries for
increased  manager  staffing and indirect  labor for payroll  related  taxes and
insurance costs, (2) approximately  $1,100 for increased  advertising  spending,
(3)  approximately  $1,890 for increased  building and equipment repairs and (4)
approximately $1,100 for increased utilities.

      Depreciation  and  amortization  decreased $2,464 for the thirty-six weeks
ended  September 9, 2003  compared  with the prior year period.  The decrease is
attributable  primarily to a reduction in  depreciation  for certain assets that
have become fully depreciated.

      General and  administrative  expenses  increased  $682 for the  thirty-six
weeks ended September 9, 2003 compared to the prior year period. The increase is
due  primarily to increased  costs of  approximately  $2,100 for  directors  and
officers liability insurance and travel and recruiting costs. The increases were
largely offset by reductions in incentive  compensation,  professional  fees and
software amortization expense.

      Abandoned  merger  expenses  of  $2,967  for the  thirty-six  weeks  ended
September 3, 2002 reflect the costs  incurred  related to the proposed  sale and
merger of the Company which was  terminated  on May 4, 2002.  Such costs include
fees paid to  investment  advisors  and legal  counsel as well as certain  costs
reimbursed  by the Company to the  potential  buyer in  connection  with its due
diligence efforts.

      Non-cash  stock  compensation  expense  for  the  thirty-six  weeks  ended
September  9, 2003  decreased  $1,072  compared  to the prior year  period.  The
decrease reflects approximately $1,385 for lower amortization of such costs. The
decrease was partially offset by a charge of $313 relating to the accounting for
certain shares of the Company's common stock held by a Rabbi Trust pursuant to a
deferred  compensation  arrangement.  See  Note  5 to  the  Notes  to  Condensed
Consolidated Financial Statements for additional information.

      Other income,  net for the thirty-six  weeks ended  September 9, 2003, was
$522 compared to $850 for the prior year period. The decrease is attributable to
a decline in  interest  income as a result of lower  interest  rates and reduced
amounts of excess funds available for investment.

      The effective income tax rate was 32.3% and 33.6% for the thirty-six weeks
ended September 9, 2003 and September 3, 2002,  respectively.  The factors which
cause the  effective  tax rates to vary from the federal  statutory  rate of 35%
include state income taxes,  the impact of FICA Tip and other  credits,  certain
non-deductible expenses, and the tax effect of incentive stock options. There is
generally no tax impact to the Company  associated  with incentive stock options
and  the  related  amortization  associated  with  such  options  in the  income
statement. However, tax benefits may arise at the time the incentive options are
exercised  to the  extent  that the  exercise  is  followed  by a  disqualifying
disposition  of the shares by the  optionee.  The decrease in the  effective tax
rate for 2003  primarily  reflects  the  impact of a  decrease  in the amount of
amortization  of stock  option  compensation  attributable  to  incentive  stock
options as compared to the prior year period.


                                      -15-



      Discontinued  operations  reflect the  operations  of  restaurants  closed
during the year ended December 31, 2002 and the thirty-six weeks ended September
9, 2003 which are required to be reported as discontinued operations pursuant to
SFAS No.  144.  The income for the  thirty-six  weeks  ended  September  9, 2003
results  primarily  from a gain on the  disposal  of assets.  See Note 10 to the
Notes to Condensed Consolidated Financial Statements for additional information.

      The cumulative effect of accounting change reflects the effect of adoption
of the provisions of SFAS No. 142,  Goodwill and Other  Intangible  Assets.  The
Company adopted the provisions of SFAS No. 142 effective  December 26, 2001. The
cumulative  effect of the change in accounting  resulted in a one-time charge of
$318, net of income taxes, to reflect the impairment of goodwill  related to the
Company's  Australian  operations.   See  Note  7  to  the  Notes  to  Condensed
Consolidated Financial Statements for additional information.


                                      -16-



IMPACT OF INFLATION

      The  primary  inflationary  factors  affecting  the  Company's  operations
include food and labor costs. A 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. However, since the
majority of personnel  are tipped  employees,  minimum wage changes  should have
little  effect on overall labor costs.  Historically  as costs of food and labor
have increased, the Company has been able to offset these increases through menu
price  increases  and  economies of scale;  however,  there may be delays in the
implementation  of such menu price increases or in effecting timely economies of
scale, as well as competitive pressures which may limit the Company's ability to
recover any cost increases in its entirety. Historically,  inflation has not had
a material  impact on  operating  margins.  During  fiscal  2003 the Company has
experienced significant increases in beef prices. If the price of beef continues
at its current  level,  it will continue to have a material  impact on operating
margins

LIQUIDITY AND CAPITAL RESOURCES  (AMOUNTS IN THOUSANDS, EXCEPT SHARE AMOUNTS)

      The following  table  presents a summary of the  Company's  cash flows for
each of the thirty-six weeks ended September 9, 2003 and September 3, 2002:

                                                                      Thirty-six weeks ended
                                                                      ----------------------
                                                                Sept. 9, 2003      Sept. 3, 2002
                                                                -------------      -------------
Net cash provided by operating activities ............          $ 37,352             43,569
Net cash provided by (used in) investing activities ..            (1,956)             1,206
Net cash used in financing activities ................           (22,697)           (74,352)
Effect of exchange rate changes on cash ..............               872                273
Net cash provided by (used in) discontinued operations             2,199               (187)
                                                                -------------      -------------
Net increase (decrease) in cash and cash equivilants .          $ 15,770           $(29,491)
                                                                =============      =============


      The  decrease  in net  cash  provided  by  operating  activities  for  the
thirty-six week period ended September 9, 2003 compared to the prior year period
is  due  to a  decrease  in  net  income  and a  decrease  in  depreciation  and
amortization.

      During the thirty-six  week period ended  September 9, 2003, the Company's
investment in property and equipment was $3,834  compared to $1,653 for the same
period in 2002.  In the  thirty-six  week period ended  September  9, 2003,  the
Company  received  $1,401 in proceeds from the sale of assets compared to $2,806
in the same period in 2002.

      During the  thirty-six  week period ended  September 9, 2003,  the Company
received net  proceeds of $5,884 from the  issuance of 697,371  shares of common
stock due to the exercise of stock options  compared to proceeds of $22,521 from
the issuance of 1,980,708  shares issued  pursuant to stock option  exercises in
the same period in 2002.

      In June 2002, the Company  completed a Modified Dutch Auction tender offer
for the purchase of  4,000,000  shares of its common stock at a price of $21.375
per share. The aggregate cost to repurchase the shares was $86,301 including the
costs of the tender  offer.  The  transaction  was financed  from the  Company's
existing available cash.


                                      -17-



      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 thirty-six  week period ended September 9,
2003 the Company  purchased  891,000  shares of common stock at a cost of $20.71
per share or an  aggregate  cost of  $18,454.  Except for the  4,000,000  shares
repurchased  in the tender  offer  previously  described,  the  Company  did not
purchase any common stock during the same period in 2002.

      The Company has paid  quarterly  cash  dividends on its common stock since
the second  quarter of fiscal 2000. In January 2003,  the Company  increased its
quarterly  cash dividend  from $.15 to $.165 per share  commencing in the second
quarter of fiscal 2003.  During the  thirty-six  week period ended  September 9,
2003,  the Company  paid  dividends  of $10,127 or $.48 per share as compared to
$10,752 or $.45 per share in the same period in 2002.

      At  September  9,  2003,   the  Company  had  $81,139  in  cash  and  cash
equivalents.  The Company had available  $55,000 in unsecured  revolving  credit
facilities. At September 9, 2003, the Company had no outstanding borrowings. See
Note 4 to the Notes to Condensed  Consolidated Financial Statements in this Form
10-Q for a further description of the Company's credit facilities.

      The Company from time to time may utilize derivative financial instruments
in the form of live beef cattle  futures  contracts  to manage  market risks and
reduce its exposure  resulting from fluctuations in the price of meat.  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 2003 and 2002 periods were not significant.
As of September 9, 2003, the Company had no positions in futures contracts.

IMPACT OF RECENTLY ISSUED FINANCIAL STANDARDS

      In June  2002,  the  FASB  issued  SFAS  No.  146,  Accounting  for  Costs
Associated  with Exit or Disposal  Activities.  This  statement  requires that a
liability for a cost associated with an exit or disposal  activity be recognized
only when the liability is incurred and measured at fair value.  SFAS No. 146 is
effective for exit or disposal  activities that are initiated after December 31,
2002. The Company has adopted this Statement  effective  January 1, 2003, and it
did not have a  material  impact  on its  results  of  operations  or  financial
position.

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, as 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, the price of beef, competition and pricing and other risks set forth
in the Company's  Annual Report on Form 10-K for the fiscal year ended  December
31,  2002.  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.


                                      -18-



Item 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
          -----------------------------------------------------------

          The Company's  exposure to market risks was not significant during the
          twelve and thirty-six weeks ended September 9, 2003.

Item 4.   CONTROLS AND PROCEDURES
          -----------------------

          Disclosure   controls  are  procedures  that  are  designed  with  the
          objective of ensuring that information required to be disclosed in the
          Company's  reports under the Securities  Exchange Act of 1934, such as
          this Form 10-Q,  is reported in  accordance  with the  Securities  and
          Exchange  Commission's  rules.  Disclosure  controls are also designed
          with the objective of ensuring that such  information  is  accumulated
          and communicated to management,  including the Chief Executive Officer
          and Chief Financial  Officer as appropriate to allow timely  decisions
          regarding required disclosure.

          As of the end of the  period  covered by the Form  10-Q,  the  Company
          carried  out  an  evaluation   under  the  supervision  and  with  the
          participation  of the  Company's  management,  including the Company's
          Chief  Executive   Officer  and  Chief  Financial   Officer,   of  the
          effectiveness of the design and operation of the Company's  disclosure
          controls and procedures  pursuant to the Securities  Exchange Act Rule
          13a-14.  Based upon that evaluation,  the Chief Executive  Officer and
          Chief  Financial  Officer  concluded  that  the  Company's  disclosure
          controls  and  procedures  are  effective in timely  alerting  them to
          material   information   relating  to  the  Company   (including   its
          consolidated  subsidiaries)  required to be in the Company's  periodic
          SEC  filings.  There  were no  significant  changes  in the  Company's
          internal controls or in other factors that could significantly  affect
          these controls subsequent to the date of their evaluation.

          Certifications  of the Chief  Executive  Officer  and Chief  Financial
          Officer  regarding,   among  other  items,   disclosure  controls  and
          procedures  are included  immediately  after the signature  section of
          this Form 10-Q.

Part II.  OTHER INFORMATION
--------  -----------------

Item 4.   SUBMISSION OF MATTERS TO A VOTE OF STOCKHOLDERS
          -----------------------------------------------

          On July 11, 2003, the Company held its Annual Meeting of  Stockholders
          (the "Meeting").  At the Meeting, the stockholders re-elected Clark D.
          Mandigo, John D. White and Thomas G. Lasorda to the Board of Directors
          to serve until the 2006 Annual Meeting of Stockholders and until their
          successors  have  been duly  elected  and  qualified.  As to the newly
          re-elected  Directors,  there were 17,944,529  votes "For" and 820,399
          votes "Withheld" for Clark D. Mandigo,  and 18,595,673 votes "For" and
          169,255 votes "Withheld" for John D. White, and 18,388,088 votes "For"
          and 376,840 votes  "Withheld" for Thomas G. Lasorda.  The stockholders
          ratified  the  appointment  of  Ernst  &  Young  LLP as the  Company's
          independent  auditors for the year ending December 30, 2003. As to the
          ratification of auditors,  there were 18,022,045 votes "For",  738,325
          votes "Against" and 4,558 votes "Abstained".


                                      -19-



Item 6.   EXHIBITS AND REPORTS ON FORM 8-K
          --------------------------------

          (a) Reports on Form 8-K

              During  the twelve  weeks  ended  September  9, 2003,  the Company
              filed   Form  8-Ks on the  following  dates  under  Item 5 - Other
              Events: July 9, 2003 and July 17, 2003

              In  addition,  the  Company   filed  a  Form  8-K  under  Item 9 -
              Regulation FD Disclosure on July 8, 2003.

          (b) Exhibits

              31.1     Certification  of Chief  Executive  Officer  pursuant  to
                       Section 302 of the Sarbanes-Oxley Act.

              31.2     Certification  of Chief  Financial  Officer  pursuant  to
                       Section 302 of the Sarbanes-Oxley Act.

              32.1     Certification  of Chief  Executive  Officer  pursuant  to
                       Section 906 of the Sarbanes-Oxley Act

              32.2     Certification  of Chief  Financial  Officer  pursuant  to
                       Section 906 of the Sarbanes-Oxley Act


                                      -20-



                                   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:  October 24, 2003                 /s/ Randall H. Pierce
                                        ----------------------------------------
                                        Randall H. Pierce
                                        Chief Financial Officer


                                      -21-



                       LONE STAR STEAKHOUSE & Saloon, 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 behalf by the
undersigned thereunto duly authorized.


                                        LONE STAR STEAKHOUSE & Saloon, Inc.
                                        (Registrant)



Date:  October 24, 2003                 /s/ Randall H. Pierce
                                        ----------------------------------------
                                        Chief Financial Officer



                                      -22-`