SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-K/A
                                 Amendment No. 1

           [ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the fiscal year ended December 31, 1998.

                         Commission File Number 1-13089

                        U.S. RESTAURANT PROPERTIES, INC.
             (Exact name of registrant as specified in its charter)


        MARYLAND                                         75-2687420
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)


          5310 Harvest Hill Rd., Suite 270, LB 168, Dallas, Texas 75230
          (Address of principal executive offices, including zip code)

                                  972-387-1487
              (Registrant's telephone number, including area code)


SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

<TABLE>
<CAPTION>
Title of each class                                         Name of each exchange on which registered
-------------------                                         -----------------------------------------
<S>                                                         <C>
Common Stock, par value $0.001 per share                                      New York Stock Exchange
$1.93 Series A Cumulative Convertible Preferred Stock                         New York Stock Exchange

</TABLE>



     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
                                             ---    ---

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. X
          ---

     The  aggregate  market  value of the Common  Stock  (based upon the closing
price of the Common  Stock on March 12,  1999,  on the New York Stock  Exchange)
held by non-affiliates of the Registrant was $260,047,114.

         As of March 12, 1999, there were 14,347,427 shares outstanding.

                       DOCUMENTS INCORPORATED BY REFERENCE

Certain  information in the Registrant's  definitive proxy statement to be filed
with the Securities and Exchange Commission related to the Company's 1998 Annual
Meeting of Stockholders is incorporated by reference in Part III hereof.

--------------------------------------------------------------------------------
<PAGE>
EXPLANATORY NOTE

U.S.  Restaurant  Properties,  Inc., a Maryland  corporation  hereby  amends its
Annual  Report on Form 10-K for the  fiscal  year  ended  December  31,  1998 as
amended. The schedule of selected financial data under caption "Item 6. Selected
Financial Data" is hereby amended in its entirety to read as follows:

ITEM 6. SELECTED FINANCIAL DATA.

The  following  information  should be read in  conjunction  with the  Company's
consolidated financial statements and notes thereto.
<TABLE>
<CAPTION>
                                                                           YEARS ENDED DECEMBER 31,
                                                ---------------------------------------------------------------------------
                                                        (IN THOUSANDS, EXCEPT PER UNIT/SHARE AND PROPERTY DATA)
                                                   1994          1995           1996            1997             1998
                                                ------------  ------------  -------------   --------------   --------------
<S>                                             <C>           <C>           <C>             <C>              <C>
STATEMENT OF INCOME:
Revenues
  Rental income.............................     $  6,340      $  7,540     $  16,346        $   32,925         $  54,501
  Interest income...........................           94            70           194             1,091             2,855
  Amortization of unearned income on
     direct financing leases................        2,453         2,240         1,978             1,568             1,174
                                                ------------  ------------  -------------   --------------   --------------
Total revenues..............................     $  8,887      $  9,850     $  18,518        $   35,584         $  58,530
Expenses:
  Rent .....................................        1,348         1,405         2,080             2,488             3,158
  Depreciation and amortization ............        1,361         1,541         3,978             9,415            15,753
  General and administrative ...............        1,144         1,419         2,299             3,590             4,793
  Interest expense .........................           90           262         2,720            10,011            16,689
  REIT conversion costs ....................          --            --            --                920               --
  Termination of management contract .......          --            --            --             19,220            12,047
  Equity in net loss of affiliate ..........          --            --            --                --                317
  Non-cash charge for impairment of
    long lived assets ......................           11           --            --                --                127
                                                ------------  ------------  -------------   --------------   --------------
Total expenses .............................     $  3,954     $  4,627      $  11,077        $   45,644         $  52,884
Gain on sale of property ...................          --           --              32               869               403
Minority interest in operating partnership..          --           --             --               (202)               58
Loss on early extinguishment of debt .......          --           --             --                --               (190)
                                                ------------  ------------  -------------   --------------   --------------
Net income (loss) ..........................     $  4,933     $  5,223      $   7,473        $   (9,393)        $   5,917
                                                ============  ============  =============   ==============   ==============
Net income (loss) allocable to
    Unitholders/Shareholders (1) ...........     $  4,834     $  5,119      $   7,325        $  (10,261)        $  (1,185)
Weighted average units/shares outstanding (2):
    Basic ..................................        6,953        6,957          8,984            11,693            13,325
    Diluted ................................        6,953        7,015          9,190            11,693            13,325
Earnings per unit/share (2):
    Basic ..................................     $   0.70     $   0.74      $    0.82        $    (0.88)        $   (0.09)
    Diluted ................................     $   0.70     $   0.73      $    0.80        $    (0.88)        $   (0.09)
Dividends/distributions per unit/share (2)       $   1.07     $   1.14      $    1.25        $     1.38         $    1.57
BALANCE SHEET DATA:
Total assets ...............................     $ 62,889     $ 71,483      $ 177,418        $  359,149         $ 604,169
Line of credit and long term debt ..........          --        10,931         69,486           129,196           342,112
Capitalized lease obligations ..............          775          563            362               170                63
General partners' capital ..................        1,308        1,241          1,163               N/A               N/A
Limited partners' capital ..................       60,361       58,071        103,120               N/A               N/A
Stockholders' equity .......................          N/A          N/A            N/A           205,412           209,775
Minority interest ..........................          N/A          N/A            N/A            19,536            29,567

Other Data:
Funds From Operations (FFO) (3).............     $  7,638     $  8,314      $  13,111        $    1,524         $  18,639
Cash flow from operating activities ........     $  6,990     $  9,288      $  13,852        $   19,334         $  41,002
Cash flow from (used in) investing activities    $    --      $(12,039)     $(100,978)       $ (174,040)        $(246,488)
Cash flow from (used in) financing activities    $ (7,569)    $  2,077      $  87,500        $  155,429         $ 206,239
Number of properties .......................          123          139            322               591               854

</TABLE>

-----------------------------
(1)  Prior to October 15, 1997  the Company  operated in  the  form of  a master
     limited partnership.  Amounts  shown for  years prior  to 1997  reflect net
     income allocable  to  partnership unitholders,  net income  per partnership
     unit, and cash distributions declared per partnership unit.

(2)  Weighted average number of units/shares outstanding, dividends/
     distributions per unit/share and earnings (loss) per unit/share have been
     adjusted to reflect the three-for-two split of the Common Stock and
     calculation of earnings (loss) per unit/share in accordance with SFAS 128.

(3)  The Company believes that it computes FFO in accordance with the standards
     established by the National Association of Real Estate Investment Trusts
     ("NAREIT"), which may differ from the methodology for calculating FFO
     utilized by other equity REITs, and, accordingly, may not be comparable to
     such other REITs.  The Company's FFO is computed as net income (loss)


                                        2
<PAGE>

     available to common stockholders (computed in accordance with GAAP), plus
     real estate related depreciation and amortization but excluding the effects
     of direct financing leases, minority interest, unusual charges and gains
     (or losses)from debt restructuring and sales of property, and the effect of
     EITF 98-9.  The Company believes FFO enhances and is helpful to investors
     as a measure of the performance of an equity REIT because, along with the
     Company's financial condition, results of operations and cash flows, it
     provides investors with an understanding of the ability of the Company to
     incur and service debt and make capital expenditures.  In evaluating FFO
     and the trends it depicts, investors should consider the major factors
     affecting FFO.  Growth in FFO will result from increases in revenue or
     decreases in related operating expenses.  Conversely, FFO will decline if
     revenues decline or related operating expenses increase.  FFO does not
     represent amounts available for management's discretionary use because of
     needed capital replacement or expansion, debt service obligations, or
     other commitments and uncertainties.  FFO should not be considered as an
     alternative to net income (determined in accordance with GAAP) as an
     indication of the Company's financial performance or to cash flows from
     operating activities (determined in accordance with GAAP) as a measure
     of the Company's liquidity, nor is it indicative of funds available to
     fund the Company's cash needs, including its ability to make distributions.


                                      3
<PAGE>
                                   SIGNATURE

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange  Act of 1934,  the  Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                        U.S. Restaurant Properties, Inc.


                                        By: /s/ Michael D. Warren
                                           ------------------------------
                                             Michael D. Warren
                                             Director of Finance


                                        Dated: June 29, 1999


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