<PAGE>
 
                                   FORM 10-Q

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

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

               For the quarterly period ended

     [_]       TRANSISITON REPORT PURSUANT TO SECTION 13 OR 15(d)
               OF THE SECURITIES EXCHANGE ACT OF 1934

               For the transistion period from ___________ to ___________

Commission File Number       1-9684
                       ------------------------- 



                         CHART HOUSE ENTERPRISES, INC.
--------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)


                Delaware                         33-0147725
--------------------------------------------------------------------------------
     (State of other juridiction of           (I.R.S. Employer
    Incorporation or organization)           Identification No.)

          115 South Acacia Avenue, Solana Beach California 92075-1803
--------------------------------------------------------------------------------
         (Address of principal executive offices, including zip code)


                                 (619)755-8281
--------------------------------------------------------------------------------
             (registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by the Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter periods 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 the number of shares outstanding of each of the issuer's classes
of common stock, as of October 31, 1995:


                   Common Stock ($.01 par value) - 8,213,348
                                                   ---------
<PAGE>
 
                        PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

                                      -1-
<PAGE>
 
                CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                       (IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE> 
<CAPTION> 
                                                                September 30,            December 31,
ASSETS                                                              1995                     1994    
                                                                -------------            ------------
                                                                 (Unaudited)                         
                                                                                                     
<S>                                                            <C>                     <C>          
Current Assets:
 Cash                                                          $       237             $       245   
 Accounts Receivable                                                 2,142                   3,722   
 Inventories                                                         3,858                   3,992  
 Prepaid Expenses and Other Current Assets                           1,533                   1,310  
                                                               -----------             -----------     
                                                                                                   
       Total Current Assets                                          7,770                   9,269      
                                                               -----------             -----------        
Property and Equipment, at Cost:                                                                   
 Land                                                                9,400                   9,400    
 Buildings                                                          30,319                  29,742   
 Equipment                                                          47,070                  43,224  
 Leasehold Interests & Improvements                                 84,072                  79,332  
 Construction in Progress                                            4,747                   3,752  
                                                               -----------             -----------        
                                                                                                   
                                                                   175,608                 165,450   
                                                                                                   
Less: Accumulated Depreciation and Amortization                     54,300                  48,276   
                                                               -----------             -----------        
                                                                                                   
       Net Property & Equipment                                    121,308                 117,174  
                                                               -----------             -----------        
Leased Property under Capital Leases, Less Accumulated                                             
 Amortization of $4,065 in 1995 and $4,702 in 1994                   4,611                   5,285  
                                                               -----------             -----------         
                                                                                                   
Other Assets and Goodwill, Net                                      23,577                  24,981   
                                                               -----------             -----------         
                                                                                                   
                                                                                                   
                                                               $   157,266             $   156,709      
                                                               ===========             ===========  
</TABLE> 


  The accompanying notes are an integral part of these consolidated balance 
                                    sheets.

                                      -2-
<PAGE>
 
                CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                       (IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE> 
<CAPTION> 
                                                                September 30,            December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY                                1995                     1994    
                                                                -------------            ------------
                                                                 (Unaudited)                         
<S>                                                            <C>                     <C>          
Current Assets:
 Current Portion of Long-Term Debt                             $     3,000             $         - 
 Current Portion of Lease Obligations                                  449                     646    
 Accounts Payable                                                    2,852                   3,226 
 Accrued Liabilities                                                10,549                  10,509  
                                                               -----------             -----------            
                                                                                                  
       Total Current Liabilities                                    16,850                  14,381 
                                                               -----------             -----------      
                                                                                                  
Long-Term Debt                                                      49,700                  56,000 
                                                               -----------             -----------      
                                                                                                  
Long-Term Obligations under Capital Leases                           5,517                   5,982 
                                                               -----------             -----------      
                                                                                                  
Deferred Income Taxes                                                7,043                   6,388  
                                                               -----------             -----------      
                                                                                                  
Stockholders' Equity:                                                                             
Preferred Stock, $1.00 par value, authorized 10,000,000                                           
 shares; none outstanding                                                -                       -          
Common Stock, $1.00 par value, authorized 30,000,000                                              
 shares; 8,213,348 shares outstanding in 1995 and                                                 
 8,196,213 in 1994                                                      82                      82    
Additional Paid-In Capital                                          42,062                  42,036 
Retained Earnings                                                   36,012                  31,840    
                                                               -----------             -----------       
                                                                                                  
       Total Stockholders' Equity                                   78,156                  73,958 
                                                               -----------             -----------      
                                                                                                  
                                                               $   157,266             $   156,709   
                                                               ===========             ===========       
</TABLE> 


  The accompanying notes are an integral part of these consolidated balance 
                                    sheets.

                                      -3-
<PAGE>
 
                CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                  (UNAUDITED)

<TABLE> 
<CAPTION> 
                                            QUARTER ENDED              NINE MONTHS ENDED    
                                            SEPTEMBER 30,                SEPTEMBER 30,      
                                       -----------------------      ----------------------  
                                         1995           1994           1994         1994    
                                       --------      ---------      ---------     --------  
<S>                                    <C>           <C>            <C>           <C> 
Revenue                                $ 47,332      $ 46,277       $ 136,667     $ 131,656 
                                       --------      --------       ---------     --------- 
                                                                                            
Operating Expenses:                                                                         
 Cost of Food and Supplies               13,682        13,851          39,449        39,058 
 Payroll and Related Taxes               12,723        12,446          36,481        35,709             
 Other Operating Costs                   10,845         9,767          31,659        28,608            
 Depreciation and Amortization            2,764         2,058           7,984         7,318           
                                       --------      --------       ---------     --------- 
                                                                                            
      Total Operating Expenses           40,014        38,572         115,573       110,693
                                       --------      --------       ---------     --------- 

Income from Restaurant Operations         7,318         7,705          21,094        20,963
Selling, General and Administrative
 Expenses                                 3,597         4,079          11,425        11,860
Interest Expense                          1,194         1,109           3,618         3,279
                                       --------      --------       ---------     --------- 

Income Before Income Taxes                2,527         2,517           6,051         5,824
Provision for Income Taxes                  784           847           1,879         2,039
                                       --------      --------       ---------     --------- 

Net Income                             $  1,743      $  1,670       $   4,172     $   3,785
                                       ========      ========       =========     ========= 


Net Income Per Common Share            $    .21      $    .20       $     .50     $     .46
                                       ========      ========       =========     ========= 

Weighted Average Shares Outstanding       8,276         8,290           8,276         8,289
                                       ========      ========       =========     ========= 
</TABLE> 

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

                                      -4-
<PAGE>
 

                CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (IN THOUSANDS)
                                  (UNAUDITED)

<TABLE> 
<CAPTION> 
                                                                  Nine Months Ended
                                                                    September 30,
                                                             ------------------------
                                                               1995            1994
                                                             --------        --------
<S>                                                          <C>             <C> 
Cash Flows from Operating Activities:
Net Income                                                   $  4,172        $  3,785
Adjustments to Reconcile Net Income to Cash Flows
 from Operating Activities:
 Depreciation and Amortization                                  7,984           7,318
 Deferred Income Taxes                                            655             205
 Loss on Retirement of Assets                                     253             372
 Change in Net Current Liabilities                              1,033          (2,061)
                                                             --------        --------

        Cash Provided by Operating Activities                  14,097           9,619
                                                             --------        --------

Cash Flows from Investing Activities:                        
Expenditures for Property and Equipment                       (12,228)        (15,671)
Reductions (Additions) to Other Assets and Goodwill               168             (78)
Proceeds from Sale/Leaseback of Asset                             905               -
Proceeds from Disposition of Assets                               428             123
Payments Received on Notes                                        391             245
                                                             --------        --------
                                                                             
        Cash Used in Investing Activities                     (10,336)        (15,381)
                                                             --------        --------

Cash Flows from Financing Activities:                        
Principal Payments on Long-Term Obligations under
 Capital Leases                                                  (495)           (581)
Net Borrowings (Payments) under Revolving Credit
 Agreement                                                     (3,300)          6,300
Proceeds from Common Stock Issuance                                26              57
                                                             --------        --------

        Cash Provided by (Used in) Financing Activities        (3,769)          5,776
                                                             --------        --------

Increase (Decrease) in Cash                                        (8)             14
Cash, Beginning of Period                                         245             218
                                                             --------        --------


Cash, End of Period                                          $    237        $    232
                                                             ========        ========
</TABLE> 

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

                                      -5-
<PAGE>
 
                CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
                                (IN THOUSANDS)
                                  (UNAUDITED)

<TABLE> 
<CAPTION> 
                                                                  Nine Months Ended
                                                                    September 30,
                                                             ------------------------
                                                               1995            1994
                                                             --------        --------
<S>                                                          <C>             <C> 
The Change in Net Current Liabilities is Comprised of        
 the Following:
 Decrease (Increase) in Accounts Receivable                  $  1,534        $   (361)
 Decrease (Increase) in Inventories                               103            (360)
 Decrease (Increase) in Prepaid Expenses and Other
  Current Assets                                                 (223)            215
 Decrease in Accounts Payable                                    (374)         (1,923)
 Increase (Decrease) in Accrued Liabilities                        (7)            368
                                                             --------        --------

        Change in Net Current Liabilities                    $  1,033        $ (2,061)
                                                             ========        ========

Supplemental Cash Flow Disclosures:
 Cash Paid During the Period for:
 Interest (Net of Amount Capitalized)                        $  4,028        $  3,084
 Income Taxes                                                $  1,049        $  1,936
</TABLE> 


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

                                      -6-
<PAGE>
 
                CHART HOUSE ENTERPRISES, INC. AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              September 30, 1995
                                  (Unaudited)



(1)  BASIS OF PRESENTATION

     The accompanying consolidated financial statements of Chart House
Enterprises, Inc. and subsidiaries (the "Company") for the quarterly and nine
month periods ended September 30, 1995 and 1994 have been prepared in accordance
with generally accepted accounting principles, and with the instructions to Form
10-Q. These financial statements have not been audited by independent public
accountants, but include all adjustments (consisting of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
presentation of the financial condition, results of operations and cash flows
for such periods. However, these results are not necessarily indicative of
results for any other interim period or for the full year.

      Certain information and footnote disclosures normally included in
financial statements in accordance with generally accepted accounting principles
have been omitted pursuant to requirements of the Securities and Exchange
Commission. Management believes that the disclosures included in the
accompanying interim financial statements and footnotes are adequate to make the
information not misleading, but should be read in conjunction with the
consolidated financial statements and notes thereto included in the Company's
annual report on Form 10-K for the year ended December 31, 1994.

(2)  NET INCOME PER COMMON SHARE

     Per share calculations are based on the weighted average number of common
shares and dilutive common stock equivalents (stock options) outstanding during
the period. Fully diluted earnings per share equals primary earnings per share
for all periods presented.

(3)  STOCKHOLDERS' EQUITY

     In the nine months of 1995, employees of the Company exercised stock
options to purchase an aggregate of 17,135 shares of common stock under the
Company's 1985 Incentive Stock Option Plan at a purchase price of $1.54 per
share.

(4)  AGREEMENT TO SELL SUBSIDIARY

     In July 1995, the Company entered into a definitive agreement to sell to an
unrelated third party all outstanding shares of common stock of its wholly-owned
subsidiary, Paradise Bakery, Inc.  The sale price will consist of $5.2 million
of cash and promissory notes totalling approximately $1.4 million.  The
transaction is expected to close in November 1995.

                                      -7-
<PAGE>
 
Item 2. Management's Discussion and Analysis of Financial Condition and Results 
of Operations.

Results of Operations
---------------------

       The following is a comparative discussion of the results of operations 
for the quarter and nine months ended September 30, 1995 and 1994. The results 
of operations for the first nine months of 1995 are not necessarily indicative 
of the results to be expected for the fiscal year ending December 31, 1995. The 
dollar amounts in the table below are in thousands.

<TABLE> 
<CAPTION> 
                                      Third Quarter Ended September 30,               Nine Months Ended September 30,
                                   ----------------------------------------      ----------------------------------------
                                          1995                  1994                    1995                  1994       
                                   ------------------    ------------------      ------------------    ------------------
                                   Dollars    Percent    Dollars    Percent      Dollars    Percent    Dollars    Percent
                                   -------    -------    -------    -------      -------    -------    -------    ------- 
                                                  (Unaudited)                                  (Unaudited)
<S>                                <C>        <C>        <C>        <C>          <C>        <C>        <C>        <C>     
Revenues                            47,332      100.0     46,277      100.0      136,667      100.0    131,656      100.0
                                   -------      -----    -------      -----      -------      -----    -------      -----

Operating Expenses:
 Cost of Food and Supplies          13,682       28.9     13,851       30.0       39,449       28.9     39,058       29.7
 Payroll and Related Taxes          12,723       26.9     12,446       26.9       36,481       26.7     35,709       27.1
 Other Operating Costs              10,845       22.9      9,767       21.1       31,659       23.2     28,608       21.7
 Depreciation and Amortization       2,764        5.8      2,508        5.4        7,984        5.8      7,318        5.6
                                   -------      -----    -------      -----      -------      -----    -------      -----
                                                                                
    Total Operating Expenses        40,014       84.5     38,572       83.4      115,573       84.6    110,693       84.1
                                   -------      -----    -------      -----      -------      -----    -------      -----

Income from Restaurant 
 Operations                          7,318       15.5      7,705       16.6       21,094       15.4     20,963       15.9
Selling, General and
 Administrative Expenses             3,597        7.6      4,079        8.8       11,425        8.4     11,860        9.0
Interest Expense                     1,194        2.5      1,109        2.4        3,618        2.6      3,279        2.5
                                   -------      -----    -------      -----      -------      -----    -------      -----

Income Before Income Taxes           2,527        5.4      2,517        5.4        6,051        4.4      5,824        4.4
Provision for Income Taxes             784        1.7        847        1.8        1,879        1.3      2,039        1.5
                                   -------      -----    -------      -----      -------      -----    -------      -----

Net Income                           1,743        3.7      1,670        3.6        4,172        3.1      3,785        2.9
                                   =======      =====    =======      =====      =======      =====    =======      =====
</TABLE> 

       Management believes that the most meaningful approach to analyzing 
results of operations is through margin analysis, which requires critically 
reviewing the relationships that certain costs and expenses bear to Revenues. 
Accordingly, the discussion below follows this approach.

       Revenues for the third quarter and nine months of 1995 increased by 
$1,055,000 and $5,011,000, respectively, from the same periods of the prior 
year. Newly-opened Islands restaurants accounted for an increase in Revenues of 
$2,576,000 for the third quarter and $7,185,000 for the nine months. Also, the 
Company's wholesale bakery increased its sales by $561,000 and $1,574,000 over 
the previous third quarter and nine month periods, respectively, due primarily 
to the addition of the Starbucks Coffee Company retail account. The sale of the 
Cork 'N Cleaver restaurants at the end of 1994 accounted for a decrease in 
Revenues of $764,000 and $2,030,000 for the third quarter and nine months, 
respectively. Comparable restaurant sales (sales at restaurants open the entire 
periods of both years) were down 2.2% for the third quarter and 1.6% for the 
nine months, due primarily to a decrease in customer counts at the Company's 
restaurants.

                                      -8-
<PAGE>
 
     Restaurant operating margins (Income from Restaurant Operations as a
percentage of Revenues) were 15.5% for the third quarter and 15.4% for the nine
months of 1995, compared to 16.6% and 15.9%, respectively, for the same periods
of 1994. Cost of Food and Supplies decreased as a percentage of Revenues mainly
because of lower costs of beef and chicken products and improved control of food
costs at Islands restaurants. Payroll and Related Taxes as a percentage of
Revenues for the 1995 periods remained unchanged from or slightly below the 1994
levels, as management continued its efforts to control hourly employee labor
costs at the restaurant level.  However, Other Operating Costs as a percentage
of Revenues increased in 1995 due to increased direct promotional costs of
redeeming Aloha Club awards at the Chart House restaurants, an increase in
insurance expenses over the prior year and from new Islands restaurants, which
initially have higher occupancy and other operating costs as a percentage of
Revenues.  Depreciation and Amortization increased slightly as a percentage of
Revenues in 1995 because of the addition of several new Islands restaurants,
which generally have shorter asset lives and higher relative costs than the
older base of Chart House restaurants.

     Selling, General and Administrative Expenses as a percentage of Revenues
decreased for the third quarter from 8.8% in 1994 to 7.6% in 1995, and for the
nine month period from 9.0% in 1994 to 8.4% in 1995.  Marketing expenditures for
the Chart House Aloha Club were lower in 1995 than in 1994, as there were
significant start up and support costs in 1994 for the Aloha Club and costs for
redeeming award certificates were shifted to the restaurants in 1995.  In
addition, personnel and overhead costs for the Islands organization have been
reduced in 1995.

     Interest Expense for the third quarter and nine months of 1995 increased by
$85,000 and $339,000, respectively, from the same periods of the prior year due
to increases in borrowings in the latter half of 1994 to fund the expansion of
Islands restaurants and higher prevailing interest rates under the revolving
credit agreement in 1995.

     The Provision for Income Taxes reflects an effective rate of 31% for the
third quarter and nine months of 1995, compared with 34% for the third quarter
and 35% for the nine months of 1994.  The decrease in the rate primarily
reflects the increased amount of federal tax credit for employment-related FICA
taxes paid on tip earnings reported by the Company's employees.

     As a result of the foregoing, Net Income increased by $73,000 for the third
quarter of 1995 and $387,000 for the nine months of 1995, over the same periods
of the prior year.

Liquidity and Capital Resources
-------------------------------

     The Company requires capital principally for the acquisition and
construction of new restaurants and the remodeling and refurbishing of existing
restaurants.  The Company's primary sources of working capital are cash flows
from operations and borrowings under a revolving credit agreement with three
banks which provides a $40,000,000 line of credit with interest at the lead
bank's base rate.  Any excess cash flows from operating and investing activities
are used primarily to reduce those borrowings.  In the nine months of 1995, the
Company decreased its revolving credit debt by $3,300,000.  At September 30,
1995, the Company had outstanding borrowings of $18,700,000 under the revolving
credit agreement.

     The Company opened four Islands restaurants, two in Florida and two in
California, in the first nine months of 1995.  Capital Expenditures, which
totalled $12.2 million, also include expenditures for Islands restaurants and
one Chart House under construction and for remodels of certain Chart House
restaurants.

                                      -9-
<PAGE>
 
     In September 1995, the Company closed its Quahogs restaurant in Warwick,
Rhode Island pending a review of alternative uses for the restaurant property
(which is owned by the Company) and evaluation of its marketability. Quahogs, a
sports-bar concept that had been open for just over one year, was shut down
because of weak sales.

     The two Chart House restaurants in the U.S. Virgin Islands have suspended
operations for an indeterminable period as a result of storm damage from
Hurricane Marilyn in September.  The Company carries property damage and
business interruption insurance, which should adequately cover the financial
loss resulting from the hurricane.

     The first principal installment of $3,000,000 under the Company's 10.4%
Senior Secured Note will become due in July 1996.  Accordingly, the amount has
been classified as a current payable on the balance sheet as of September 30,
1995.

     The Company expects to open three additional Islands restaurants in the
fourth quarter of 1995.  One Chart House restaurant and one Islands are expected
to open in the first quarter of 1996.  Total capital expenditures for 1995 are
projected to be approximately $19.0 million.  Management believes that cash
flows from operations will be sufficient to fund a portion of the capital
expenditures for the planned new restaurants for 1995, the ongoing maintenance
and remodeling of existing restaurants, and construction of restaurants which
will open in 1996.  Borrowings under the revolving credit agreement will meet
funding requirements not met by cash flows from operations in 1995.

Seasonality
-----------

     Historically, the Company's business is seasonal in nature with Revenues
and Net Income for the second and third quarters being greater than in the first
and fourth quarters.

                                      -10-
<PAGE>
 
                          PART II - OTHER INFORMATION


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

   (a)  Exhibits.

        Exhibits No. 2.1  (1) Agreement and Plan of Reorganization dated as of
                              July 7, 1995 by and among Clucker's Wood Roasted
                              Chicken, Inc., Paradise Acquisition Corp., Chart
                              House Enterprises, Inc., and Paradise Bakery,
                              Inc., together with exhibits thereto (but
                              excluding the Disclosure Schedule attached
                              thereto).

                          (2) First Amendment dated September 6, 1995 to
                              Agreement and Plan of Reorganization.
                          (3) Second Amendment dated November 2, 1995 to
                              Agreement and Plan of Reorganization.

                 No. 27.1     Financial Data Schedule (required for electronic 
                              filing only)

   (b)  Reports on Form 8-K.  No reports on Form 8-K were filed during the
        quarter of which this report is filed.

                                      -11-
<PAGE>
 
                                  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.


                                  CHART HOUSE ENTERPRISES, INC. (Registrant)



Date:  November 7, 1995               By: /s/ JOHN M. CREED
                                          ------------------------------
                                          John M. Creed
                                          President, Chief Executive Officer and
                                           Chairman of the Board


                                      By: /s/ HAROLD E. GAUBERT, JR.
                                          ------------------------------
                                          Harold E. Gaubert, Jr.
                                          Vice President, Treasurer and Chief
                                          Financial Officer


                                      By: /s/ JAMES C. WENDLER
                                          ------------------------------
                                          James C. Wendler
                                          Vice President and Chief Accounting
                                          Officer

                                      -12-