UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

[X] Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended December 31, 2002

[ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from			to

Commission file number:	1-11754

Piccadilly Cafeterias, Inc.
(Exact name of registrant as specified in its charter)

Louisiana				72-0604977
(state or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)

3232 Sherwood Forest Blvd., Baton Rouge, Louisiana			70816
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code		(225) 293-9440

Not applicable
(Former name, former address and former fiscal year, if changed since last report)

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 [ ]

The number of shares outstanding of Common Stock, without par value, as of February 13, 2002, was 10,880,807.

PART I -- Financial Information

Item 1. Financial Statements (Unaudited)

CONDENSED BALANCE SHEETS (Unaudited)

(Amounts in thousands except share data)
	Balances at		December 31		July 2
			2002		2002
	ASSETS
	Current assets
	Cash and cash equivalents	$	1,144	$	5,661
	Accounts and other receivables		637		952
	Income taxes recoverable		2,000		---
	Inventories		11,105		11,286
	Other current assets		1,520		1,541
	Total current assets		16,406		19,440
	Property, Plant and Equipment		214,414		243,416
	Less allowances for depreciation and cafeteria closings		126,272		144,021
	Net property, plant and equipment		88,142
					99,395
	Goodwill		3,705		3,705
	Other assets		9,729		11,155
	Total assets	$	117,982	$	133,695

	LIABILITIES AND SHAREHOLDERS’ EQUITY
	Current liabilities
	Current portion of long term debt, net of $766,000 unamortized discount at
	July 2, 2002	$	---	$	9,112
	Accounts payable		8,800		7,831
	Accrued interest		868		984
	Accrued salaries, benefits and related taxes		11,551		12,973
	Accrued rent		3,524		3,502
	Other accrued expenses		4,580		4,592
	Total current liabilities		29,323		38,994
	Notes payable, net of $2,765,000 and $2,927,000 unamortized discount at December 31,
	2002 and July 2, 2002, respectively		36,452		34,695
	Reserve for cafeteria closings		3,715		5,163
	Other noncurrent liabilities, less current portion		8,327		8,039
	Minimum pension liability		22,538		22,538

	Shareholders’ equity
	Preferred stock, no par value; authorized 50,000,000 shares; issued and outstanding: none		---		---
	Common stock, no par value, stated value $1.82 per share; authorized 100,000,000 shares;
	issued and outstanding: 10,880,807 shares at December 31, 2002 and 10,880,453 shares
	at July 2, 2002		19,782		19,782
	Additional paid-in capital		18,506		18,506
	Retained earnings		1,877		8,680
			40,165		46,968
	Less treasury stock at cost: 14,864 Common Shares at July 2, 2002		---		164
	Less accumulated other comprehensive loss		22,538		22,538
	Total shareholders’ equity		17,627		24,266
	Total liabilities and shareholders’ equity	$	117,982	$	133,695
	See Notes to Condensed Financial Statements (Unaudited)

STATEMENTS OF OPERATIONS (Unaudited)

	(Amounts in thousands – except per share data)
		Three Months Ended December 31				Six Months Ended December 31
		2002		2001		2002		2001
	Net sales	$	88,398	$	95,771	$	176,294	$	190,502
	Cost and expenses:
	Cost of sales		51,203		53,585		102,875		106,792
	Other operating expense		32,705		36,278		66,242		71,450
	General and administrative expense		2,895		3,002		5,675		5,854
	Other expense (income)		(102)		(292)		(652)		(379)
	Interest expense		1,789		1,946		3,686		4,123
	Loss on early retirement of debt		1,326		804		1,326		1,906
	Provision for cafeteria impairments		5,841		---		5,841		---
			95,657		95,323		184,993		189,746
	Income (loss) from continuing operations before income taxes		(7,259)		448		(8,699)		756
	Provision for income taxes (benefit)		(2,000)		---		(2,000)		---
	Income (loss) from continuing operations		(5,259)		448		(6,699)		756
	Discontinued operations:
	Loss from operations		(346)		(225)		(816)		(442)
	Gain on disposal of cafeterias closed		831		---		831		---
	Net gain (loss) from discontinued operations		485		(225)		25		(442)
	Net income (loss)	$	(4,774)	$	223	$	(6,674)	$	314
	Weighted average number of shares outstanding – basic and assuming dilution		10,881