<PAGE>
 
________________________________________________________________________________
________________________________________________________________________________

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                        
                              ____________________

                                   FORM 10-Q
                              ____________________

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 1999

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934 (No Fee Required)
          For the transition period from             to             .
                                        
                         Commission file number 0-27116
                                        
                              ____________________

                             PYRAMID BREWERIES INC.
             (Exact name of registrant as specified in its charter)


          Washington                                      91-1258355    
(State or other jurisdiction of                        (I.R.S. Employer 
 incorporation or organization)                       Identification No.)


                           91 So. Royal Brougham Way,
                               Seattle, WA 98134
              (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (206) 682-8322
                                        
                              ____________________

  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.  Yes  X   No    .
                                               ---     ---

  Common stock, par value of $.01 per share: 8,224,352 shares of Common Stock
outstanding as of March 31, 1999
<PAGE>
 
                             PYRAMID BREWERIES INC.
                                   FORM 10-Q
                 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999

                               TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                                    Page                
                                                                                    ----
<S>       <C>                                                                       <C> 
PART I    FINANCIAL INFORMATION
Item 1.   Financial Statements (unaudited)
          Balance Sheets          
            March 31, 1999 and December 31, 1998.................................     3  
          Statements of Operations                                                       
            Quarter Ended March 31, 1999 and 1998................................     4  
          Statements of Cash Flows                                                       
            Quarter Ended March 31, 1999 and 1998................................     5  
          Notes to Financial Statements..........................................     6  
Item 2.   Management's Discussion and Analysis of Financial Condition                    
           and Results of Operations.............................................     8  
                                                                                         
PART II   OTHER INFORMATION                                                              
Item 6.   Exhibits and Reports on Form 8-K.......................................    11  
                                                                                         
          SIGNATURE..............................................................    12  
                                                                                         
          EXHIBIT INDEX..........................................................    13  
                                                                                         
          Exhibit 27.............................................................    14   
</TABLE> 
 

                                       2
<PAGE>
 
PART I

                         Item 1 -- FINANCIAL STATEMENTS
                                        
                              PYRAMID BREWERIES INC.

                                 BALANCE SHEETS
                                        
<TABLE>
<CAPTION>
                                                                     March 31,         December 31,
                                                                       1999                1998
                                                                    (Unaudited)         (Audited)
                                                               --------------------------------------
   <S>                                                              <C>                <C> 
CURRENT ASSETS:
   Cash and cash equivalents                                          $ 5,296,897         $ 5,245,134
   Accounts receivable, net                                             1,390,491           1,003,789
   Inventories                                                          1,402,026           1,202,793
   Prepaid expenses and other                                             563,256             621,009
   Deferred income taxes                                                  444,216             444,216
                                                               -------------------------------------- 
     Total current assets                                               9,096,886           8,516,941
                                                               -------------------------------------- 
Fixed assets, net                                                      27,245,233          27,558,848
Deferred income taxes                                                     490,576             490,576
Other                                                                     843,577             865,286
                                                               -------------------------------------- 
     Total assets                                                     $37,676,272         $37,431,651
                                                               ====================================== 
CURRENT LIABILITIES:
   Accounts payable                                                   $   756,739         $   218,964
   Accrued expenses                                                     1,370,758           1,312,593
   Refundable deposits                                                    520,895             462,747
   Restructuring reserve                                                   58,915              69,238
                                                               --------------------------------------
     Total current liabilities                                          2,707,307           2,063,542
 Deferred rent                                                            847,504             782,245
                                                               -------------------------------------- 
     Total liabilities                                                  3,554,811           2,845,787
                                                               --------------------------------------
COMMITMENTS AND CONTINGENCIES                                                                        
                                                                                                     
STOCKHOLDERS' EQUITY:                                                                                
Preferred stock, 10,000,000 shares authorized,                                                       
 none issued                                                                   --                  --    
Common stock, $.01 par value; 40,000,000 shares authorized,                                              
 8,224,352 and 8,219,532 shares issued and outstanding                     82,243              82,195    
Additional paid-in capital                                             35,042,412          35,036,869    
Retained deficit                                                       (1,003,194)           (533,200)   
                                                               -------------------------------------- 
Total stockholders' equity                                             34,121,461          34,585,864    
                                                               --------------------------------------    
Total liabilities and stockholders' equity                            $37,676,272         $37,431,651    
                                                               ====================================== 
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>
 
                             PYRAMID BREWERIES INC.

                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                         Quarter Ended March 31,       
                                                        1999                1998       
                                                -------------------------------------- 
<S>                                               <C>                <C>               
Gross sales                                             $6,227,482         $ 6,208,948 
Less excise taxes                                          357,589             359,767 
                                                -------------------------------------- 
Net sales                                                5,869,893           5,849,181 
Cost of sales                                            4,628,887           4,757,583 
                                                -------------------------------------- 
  Gross margin                                           1,241,006           1,091,598 
Selling, general and administrative expenses             1,810,949           2,157,190 
                                                -------------------------------------- 
Operating loss                                            (569,943)         (1,065,592)
Other income, net                                           99,949              84,485 
                                                -------------------------------------- 
Loss before income taxes                                  (469,994)           (981,107)
Benefit for income taxes                                        --             345,779 
                                                -------------------------------------- 
Net loss                                                $ (469,994)        $  (635,328)
                                                ====================================== 
Basic and diluted net loss per share                        $(0.06)             $(0.08)
                                                ====================================== 
Weighted average shares outstanding                      8,223,147           8,209,862 
                                                ====================================== 
  Beer barrels shipped                                      23,700              23,800 
                                                ====================================== 
  Soda barrels shipped                                       5,800               5,800 
                                                ====================================== 
  Total barrels shipped                                     29,500              29,600 
                                                ======================================  
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>
 
                             PYRAMID BREWERIES INC.

                            STATEMENTS OF CASH FLOWS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                                                         Quarter Ended March 31,
                                                                        1999                1998
                                                                  --------------------------------------  
<S>                                                               <C>                <C>
OPERATING ACTIVITIES:
  Net loss                                                              $ (469,994)         $ (635,328)
  Adjustments to reconcile net loss to net cash provided by
   (used in) operating activities:
    Depreciation and amortization                                          706,012             780,891
    Loss (gain) on sales of fixed assets                                     5,891              (9,745)
    Deferred income taxes                                                       --            (612,108)
    Deferred rent                                                           65,259              52,743
    Restructuring charge                                                   (10,323)           (149,240)
  Changes in operating assets and liabilities: 
    Accounts receivable                                                   (386,702)           (140,075)
    Inventories                                                           (199,233)            (33,101)
    Prepaid expenses and other                                             (70,986)            (66,490)
    Income taxes receivable                                                     --             265,449
    Accounts payable and accrued expenses                                  595,940             462,882
    Refundable deposits                                                     58,148             (27,206)
                                                                  -------------------------------------- 
      Net cash provided by (used in) used in operating activities          294,012            (111,328)
                                                                  -------------------------------------- 
INVESTING ACTIVITIES: 
    Acquisitions of fixed assets                                          (282,499)           (497,897)
    Proceeds from sales of fixed assets                                     34,659              92,898
    Payments on deposits                                                        --              (4,687)
                                                                  -------------------------------------- 
      Net cash used in investing activities                               (247,840)           (409,686)
                                                                  -------------------------------------- 
FINANCING ACTIVITIES:
    Proceeds from the sale of stock                                          5,591               5,526
                                                                  -------------------------------------- 
      Net cash provided by financing activities                              5,591               5,526
                                                                  --------------------------------------  
Increase (decrease) in cash and cash equivalents                            51,763            (515,488)
Cash and cash equivalents at beginning of period                         5,245,134           5,393,251
                                                                  -------------------------------------- 
Cash and cash equivalents at end of period                              $5,296,897          $4,877,763
                                                                  ======================================
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>
 
                             PYRAMID BREWERIES INC.

                         NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)

1.  BASIS OF PRESENTATION:

  Pyramid Breweries Inc. (the "Company"), a Washington corporation, is engaged
in the brewing, marketing and selling of craft beers and premium sodas and in
restaurant operations.  The Company operates breweries in Seattle, Washington
and Berkeley, California.  The Company sells its beer through a network of
selected independent distributors primarily in Washington, Oregon and California
under the Pyramid and Thomas Kemper brands. Pyramid manufactures a line of
batch-brewed sodas under the Thomas Kemper Soda Company label, which are sold
primarily in Washington, Oregon and California.  As of March 31, 1999, the
Company's products were distributed in 32 states and Canada. The Company
operates two restaurants adjacent to its breweries under the Pyramid Alehouse
brand name.

  The accompanying condensed financial statements have been prepared by the
Company, without audit, in accordance with generally accepted accounting
principles for interim financial information and pursuant to the rules and
regulations of the Securities and Exchange Commission.  With the exception of
the historical information contained herein, the matters described may contain
forward-looking statements that involve risks and uncertainties, including those
described under the caption entitled "Risk Factors and Forward-Looking
Statements" in the Company's Annual Report on Form 10-K for the year ended
December 31, 1998, filed with the Securities and Exchange Commission, and
elsewhere in the Company's periodic reports.  In the opinion of management, the
accompanying unaudited financial statements contain all material adjustments,
consisting only of those of a normal recurring nature, considered necessary for
a fair presentation of the Company's financial position, results of operations
and cash flows at the dates and for the periods presented.  The operating
results for the interim periods presented are not necessarily indicative of the
results expected for the full year.

2.  INVENTORIES:

<TABLE>
<CAPTION>
                                                   March 31,          December 31,
                                                     1999                1998
                                                  -----------         ----------- 
<S>                                               <C>                 <C>
Raw Materials.............................         $  775,503          $  618,302 
Finished Goods............................            626,523             584,491 
                                                   ----------          ---------- 
                                                   $1,402,026          $1,202,793 
                                                   ==========          ==========  
</TABLE>

  Inventories are stated at the lower of average cost or market.  Cost is
determined by the first-in-first-out method and market represents the lower of
replacement cost or estimated net realizable value.
 
3.  FIXED ASSETS:

<TABLE>
<CAPTION>
                                                   March 31,          December 31,
                                                     1999                1998
                                                  -----------         ----------- 
<S>                                               <C>                 <C>
Brewery and retail equipment..............        $17,419,968         $17,283,235
Furniture and fixtures....................            878,882             618,910
Leasehold improvements....................         13,857,748          13,909,636
Construction in progress..................            266,144             340,514
Assets held for sale......................                 --              32,000
                                                  -----------         ----------- 
                                                   32,422,742          32,184,295
Less accumulated depreciation.............         (5,177,509)         (4,625,447)
                                                  -----------         -----------
                                                  $27,245,233         $27,558,848
                                                  ===========         ===========
</TABLE>

                                       6
<PAGE>
 
4.  COMMITMENTS AND CONTINGENCIES:

  The Company is involved from time to time in claims, proceedings and
litigation arising in the ordinary course of business. The Company does not
believe that any such claim, proceeding or litigation, either alone or in the
aggregate, will have a material adverse effect on the Company's financial
position or results of operations.

5.  SEGMENT INFORMATION:

  The Company adopted Statement of Financial Accounting Standards No. 131 (SFAS
131) "Disclosures about Segments of an Enterprise and Related Information,"
during 1998. Following the provisions of SFAS 131, the Company is reporting
segment information in the same format as reviewed by the Company's management
(the "Management Approach"), which is organized around differences in products
and services. All segment information is presented here except for the capital
expenditures and the total asset line items for 1998 because obtaining the
information was impracticable.

  Products and Services

  The Company's reportable segments include brewery operations, soda operations
and alehouses. Brewery operations include the production and sale of Pyramid
Ales and Thomas Kemper beers. Soda operations include the production and sale of
Thomas Kemper Soda Company products. The third segment consists of two full-
service alehouses, which market and sell the full line of the Company's beer and
soda products as well as food and certain merchandise.

  Factors used to identify reportable segments

  The Company's reportable segments are strategic business units that offer
distinct and different products and services. These segments are managed
separately because each business requires different production, management and
marketing strategies.

  Measurement of segment profit and segment assets

  The accounting policies of the segments are the same as those described in the
summary of significant accounting policies.  The Company evaluates performance
based on profit or loss from operations before income taxes not including
nonrecurring gains and losses.  The Company records intersegment sales at
current market prices.

Segment profit and segment assets are as follows:

<TABLE>
<CAPTION>
                                           Brewery          Soda
                                          Operations     Operations      Alehouses        Other           Total 
                                          ----------     ----------      ---------        -----           -----
                                                               (Dollars in thousands)
<S>                                    <C>            <C>            <C>              <C>             <C> 
Quarter ended March 31, 1999
   Revenues from external customers.        $ 3,831           $755        $1,641         $    --         $ 6,227
   Intersegment revenues............            152              7          (159)             --              --
   Interest income..................             --             --            --              79              79
   Depreciation and amortization....            540             28           103              35             706
   Operating income (loss)..........           (184)           242            20            (648)           (570)
   Income tax benefit...............             --             --            --              --              --
   Capital expenditures.............            141             --            29             112             282
   Total assets.....................         22,380            585         3,442          11,269          37,676
 
Quarter ended March 31, 1998
   Revenues from external customers.        $ 4,004           $755        $1,450         $    --         $ 6,209
   Intersegment revenues............             97              9          (106)             --              --
   Interest income..................             --             --            --              81              81
   Depreciation and amortization....            555             28           166              32             781
   Operating income (loss)..........           (500)           220           (15)           (771)         (1,066)
   Income tax benefit...............             --             --            --             346             346
   Capital expenditures.............            197            142            62              97             498
</TABLE>

                                       7
<PAGE>
 
Other

  Other consists of interest income, general and administrative expense,
corporate office assets and other reconciling items that are not allocated to
segments for internal management reporting purposes.  Total assets include all
assets except for fixed assets, which are presented by segment.

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

RESULTS OF OPERATIONS

  The following table sets forth, for the periods indicated, certain selected
unaudited operating data, expressed as a percentage of net sales.

SELECTED UNAUDITED OPERATING DATA

<TABLE>
<CAPTION>
                                                                               Quarter Ended March 31, 
                                                                               ----------------------- 
                                                                                % of                                  % of
                                                             1999            Net Sales             1998            Net Sales
                                                       -----------------  ----------------  ------------------  ----------------
<S>                                                    <C>                <C>               <C>                 <C>
Gross sales..........................................        $6,227,482                           $ 6,208,948
Less excise taxes....................................           357,589                               359,767
                                                             ----------          -----            -----------          -----     
Net sales............................................         5,869,893          100.0              5,849,181          100.0     
Cost of sales........................................         4,628,887           78.9              4,757,583           81.3     
                                                             ----------          -----            -----------          -----     
    Gross margin.....................................         1,241,006           21.1              1,091,598           18.7     
Selling, general and administrative..................         1,810,949           30.8              2,157,190           37.0     
                                                             ----------          -----            -----------          -----     
Operating loss.......................................          (569,943)          (9.7)            (1,065,592)         (18.3)    
Other income, net....................................            99,949            1.7                 84,485            1.4     
                                                             ----------          -----            -----------          -----     
Loss before income taxes.............................          (469,994)          (8.0)              (981,107)         (16.9)    
Benefit for  income taxes............................                --             --                345,779            5.9     
                                                             ----------          -----            -----------          -----     
Net loss.............................................        $ (469,994)          (8.0)           $  (635,328)         (11.0)    
                                                             ==========          =====            ===========          =====     
 
Basic and diluted net loss per share.................            $(0.06)                               $(0.08)
                                                             ==========                           ===========
Weighted  average shares outstanding.................         8,223,147                             8,209,862
                                                             ==========                           ===========
Operating data (in barrels):
    Beer barrels shipped.............................            23,700                                23,800
                                                             ==========                           ===========
    Soda barrels shipped.............................             5,800                                 5,800
                                                             ==========                           ===========
    Total barrels shipped............................            29,500                                29,600
                                                             ==========                           ===========
    Production capacity at period end................           172,000                               172,000
                                                             ==========                           ===========
</TABLE>

QUARTER ENDED MARCH 31, 1999 COMPARED TO QUARTER ENDED MARCH 31, 1998

  Gross Sales.  Gross sales were $6,227,000 in the first quarter ended March 31,
1999 compared to $6,209,000 in the same quarter of 1998.  This small increase in
gross sales was due to increased Alehouse sales, offset by a decrease in
wholesale beer sales while soda product sales were flat.  Alehouse sales
increased 13.2%, from $1,450,000 to $1,641,000, due to increased sales prices
and patronage at both alehouse restaurants.  Wholesale beer sales decreased 4.3%
to $3,831,000 in the first quarter ended March 31, 1999 from $4,004,000 in the
same quarter of 1998.  This decrease was due to a slight volume decrease and a
reduction in revenues per barrel due to an increase in draft beer sales as a
percentage of total beer sales from 38.3% in first quarter of 1998 to 41.5% in
first quarter of 1999.  Sales of Thomas Kemper Soda products remained unchanged
from the same quarter of 1998 at $755,000 and 5,800 barrels shipped.

  Excise Taxes.  Excise taxes totaled 5.7% and 5.8% of gross sales for the
quarters ended March 31, 1999 and 1998, respectively.

  Gross Margin.  Gross margin as a percentage of net sales increased to 21.1% in
the quarter ended March 31, 1999 from 18.7% in the same quarter of 1998. This
increase as a percentage of net sales was due mainly to a greater proportion of
beer production at the more efficient Berkeley production plant and a shift in
product mix to higher margin products.

  Selling, General and Administrative Expenses.  Selling, general and
administrative expenses decreased 16.0% to $1,811,000 or 30.8% of net sales for
the first quarter ended March 31, 1999 from $2,157,000 or 37% of net sales for
the same quarter of 1998.  This 

                                       8
<PAGE>
 
decrease resulted from planned sales and marketing expenditure reductions and a
decrease in non-recurring costs related to the upgrading of the Company's
computer systems, legal and other expenses in the first quarter of 1998.

  Other Income, net.  Other income, net was approximately $100,000 and 1.7% of
net sales for the first quarter ended March 31, 1999 compared to $84,000 and
1.4% of net sales in the same quarter of 1998.  The increase can be attributed
to increased parking and interest income and decreased other expense during the
quarter ended March 31, 1999 compared to the same quarter of 1998.

  Income Taxes. The Company recorded no income tax benefit for the first quarter
ended March 31, 1999 compared to the $346,000 benefit in the same quarter of
1998. The Company has established a valuation allowance to offset the further
accumulation of deferred tax assets that can arise from recurring tax benefits
associated with pre-tax losses.

  Net Loss. The Company reported a net loss of $470,000 for the first quarter
ended March 31, 1999 compared to a net loss of $635,000 in the same quarter of
1998. The decrease in net loss was the result of increased alehouse sales,
higher gross margin on wholesale beer sales and a reduction in selling, general
and administrative expenses, offset by the elimination of a tax benefit for the
loss in the first quarter ended March 31, 1999.

LIQUIDITY AND CAPITAL RESOURCES

  Net cash provided by operating activities during the first quarter ended March
31, 1999 was approximately $294,000 due primarily to the offset of depreciation
and amortization expense to the net loss for the quarter.  Net cash used in
investing activities for the quarter ended March 31, 1999 was $248,000 resulting
from funds used to upgrade computers and installation of production equipment at
the Berkeley Brewery.  At March 31, 1999, the Company had working capital of
$6,390,000 compared to $6,453,000 at December 31, 1998.

  The Company has a $10 million line of credit (the Line of Credit) for short-
term operating needs. The Line of Credit revolves through April 30, 2000, during
which time the payments are interest only. At that date, any outstanding balance
will be due in full. Borrowings under the Line of Credit will accrue interest,
at the Company's option, at either the bank's prime rate or at LIBOR plus 100
basis points. Up to $5 million of the line of credit may be used to finance
acquisitions. Amounts used to finance acquisitions may be converted to a four-
year fully amortizing term loan, with an additional option to fix the rate of
interest at the bank's prime rate plus 125 basis points.

  Future capital requirements may vary depending on such factors as the cost of
acquisition of businesses, brands and real estate costs in the markets selected
for future expansion, whether such real estate is leased or purchased and the
extent of improvements necessary. Capital expenditures in 1999 are expected to
be less than 1998 expenditures. Planned projects include the continued upgrading
of brewery equipment and alehouse facilities in the Seattle and Berkeley
locations.  While there can be no assurance that current expectations will be
realized and plans are subject to change upon further review, the Company
believes that its cash reserves, together with cash from operations and
borrowings under the Line of Credit, will be sufficient for the Company's
working capital needs during 1999.

  The Company's future cash requirements and cash flow expectations are closely
related to its expansion plans. The Company generally expects to meet future
financing needs through cash on-hand, cash flow from operations and, to the
extent required and available, additional bank borrowings.

YEAR 2000

  The year 2000 issue is the result of computer programs being written using two
digits rather than four digits to define the applicable year.  Any of the
Company's computer programs that have time-sensitive software may recognize a
date using "00" as the year 1900 rather than the year 2000.  If not addressed,
the direct result could be a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary inability
to process customer transactions or engage in similar normal business
activities.

  The Company's Year 2000 Project is proceeding on schedule. Early in 1998, the
Company began a project to improve its information systems by replacing existing
business software. The new system replaces all critical systems and
approximately 90% of all computer systems which the Company's inventory showed
to be affected by the year 2000 issue. The Company's inventory 

                                       9
<PAGE>
 
revealed no other significant problems arising from non-compliant computer chips
embedded in other equipment. The total cost of the Company's Year 2000 Project
is approximately $500,000, including the cost of installing the business
software. Approximately $430,000 has been incurred as of March 31, 1999 and the
project is expected to be completed by mid-1999.

  The Company is dependent upon certain suppliers and its wholesale customers.
There are plans to communicate with these companies to assess their readiness
for the year 2000. Contingency plans will be made where practicable to cope with
interruption of supplies or services and failures by wholesalers to properly
service the Company's markets. However, it should be noted that there are many
cases, such as utility supply and servicing of remote markets, where no feasible
alternatives are available to the Company and the Company is vulnerable to
failures by external third parties.

  Although management anticipates that its systems and applications will be year
2000 compliant on a timely basis, there can be no assurance that the systems of
other companies on which the Company's systems rely will be year 2000 compliant
in the same time frame. Any such failure on the part of other companies with
whom the Company transacts business, to be year 2000 compliant on a timely
basis, may have an adverse impact on the operations of the Company.

RISK FACTORS AND FORWARD LOOKING STATEMENTS

  Pyramid Breweries Inc. does not provide forecasts of future financial
performance. However this report does contain forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934, which are
subject to the "safe harbor" created by that section.  There are numerous
important factors that could cause results to differ materially from those
anticipated by some of the statements made by the Company. Investors are
cautioned that all forward-looking statements involve a high degree of risk and
uncertainty. Additional information concerning those and other factors is
contained in the Company's Securities and Exchange Commission filings including
its Form 10-K for the year ended December 31, 1998.

                                       10
<PAGE>
 
PART II -- OTHER INFORMATION

ITEM 5.  OTHER INFORMATION

  A shareholder who intends to present a proposal at the Company's next annual
meeting, other than pursuant to Rule 14a-8 under the Securities Exchange Act of
1934, must provide the Company notice of such intention by at least April 7,
2000, or management of the Company will have discretionary voting authority at
the 2000 annual meeting with respect to such proposal without any discussion of
the matter in the Company's proxy statement.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(A)  EXHIBITS

  The following exhibits are filed as part of this report.

  3.1*  Amended and Restated Articles of Incorporation
  3.2*  Amended and Restated Bylaws
  27    Financial Data Schedule

  * Incorporated by reference to the exhibits filed as part of the Company's
    Registration Statement on Form S-1 (File No. 33-97834).

(B)  REPORTS ON FORM 8-K

  None filed during the quarter ended March 31, 1999.

Items 1, 2, 3, and 4 of PART II are not applicable and have been omitted

                                       11
<PAGE>
 
                                   SIGNATURE
                                        
  Pursuant to the requirements of Section 13 or 15(d) 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, in the City of Seattle,
State of Washington, on May 14, 1999.

                                          PYRAMID BREWERIES INC.            
                                                                            
                                                                            
                                          By: /s/ RICHARD DENMARK        
                                              -------------------        
                                              Richard Denmark, Vice President
                                              and Chief Financial Officer     


DATE:  May 14, 1999

                                       12
<PAGE>
 
                                 EXHIBIT INDEX

  EXHIBIT
    NO.                      DESCRIPTION
  -------                -----------------------
    27                   Financial Data Schedule

                                       13