EXHIBIT 11

                   THE QUAKER OATS COMPANY AND SUBSIDIARIES
                                       
                STATEMENT RE COMPUTATION OF PER SHARE EARNINGS

                                                                     
                                                                     
                                                                
Calculation of Fully Diluted Earnings Per Share                         
                                                     Dec 31,   Dec 31,   Dec 31,
Dollars in Millions (Except Per Share Data)            1996      1995      1994
                                                                                
Income  Before  Cumulative Effect of  Accounting 
  Change                                             $247.9    $724.0    $193.1
                                                                                
Less:  Adjustments attributable to conversion of                                
  ESOP Convertible Preferred Stock                     (0.8)     (1.0)     (1.3)
                                                                                
Income Before Cumulative Effect of Accounting                                   
  Change Used for Fully Diluted Calculation           247.1     723.0     191.8
                                                                                
Cumulative Effect of Accounting Change - net of tax      --        --      (4.1)

Net Income Used for Fully Diluted Calculation        $247.1    $723.0    $187.7
                                                                                
Shares in Thousands                                                             
                                                                                
Average Number of Common Shares Outstanding         135,466   134,149   133,709
                                                                                
Plus Dilutive Securities:                                                       
                                                                                
    Stock Options                                     1,276     1,309     1,703
                                                                                
    ESOP Convertible Preferred Stock                  2,441     2,586     2,659
                                                                                
Average Shares Outstanding Used for Fully                                       
  Diluted Calculation                               139,183   138,044   138,071
                                                                                
Fully Diluted Earnings Per Share Before                                         
  Cumulative Effect of Accounting Change             $ 1.78    $ 5.23    $ 1.39
                                                                                
Fully Diluted Cumulative Effect of Accounting                                   
  Change                                                 --        --     (0.03)
                                                                                
Fully Diluted Earnings Per Share                     $ 1.78    $ 5.23    $ 1.36