FORM 10-Q

               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549


       Quarterly Report Pursuant to Section 13 or 15(d) of
               the Securities Exchange Act of 1934

              For the Quarter ended October 3, 2001

                   Commission File No. 0-10943


                RYAN'S FAMILY STEAK HOUSES, INC.
     (Exact name of registrant as specified in its charter)

        South Carolina                No. 57-0657895
 (State or other jurisdiction        (I.R.S. Employer
      of incorporation)            Identification No.)


                  405 Lancaster Avenue (29650)
                          P. O. Box 100
                   Greer, South Carolina 29652
                 (Address of principal executive
                  offices, including zip code)

                          864-879-1000
      (Registrant's telephone number, including area code)

  ------------------------------------------------------------


Indicate by check mark whether the registrant (1) has  filed
all reports required to be filed by Sections 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 ________

At October 3, 2001, there were 30,501,000 shares outstanding
of the registrant's common stock, par value $1.00 per share.








                RYAN'S FAMILY STEAK HOUSES, INC.

                       TABLE OF CONTENTS                PAGE NO.



PART I -  FINANCIAL INFORMATION

Item 1.   Financial Statements:

       Consolidated Statements of Earnings (Unaudited) -
       Quarters Ended October 3, 2001 and September 27,
       2000                                                  3

       Consolidated Statements of Earnings (Unaudited) -
       Nine Months Ended October 3, 2001 and September 27,
       2000                                                  4

       Consolidated Balance Sheets -
       October 3, 2001 (Unaudited) and January 3, 2001       5

       Consolidated Statements of Cash Flows (Unaudited) -
       Nine Months Ended October 3, 2001 and September 27,
       2000                                                  6

       Consolidated Statements of Shareholders' Equity
       (Unaudited) -
       Nine Months Ended October 3, 2001 and September 27,
       2000                                                  7

       Notes to Consolidated Financial Statements
       (Unaudited)                                           8

Item 2.Management's Discussion and Analysis of Financial
       Condition
       and Results of Operations                         9 - 11

Item 3.Quantitative And Qualitative Disclosures About
       Market Risk                                          12

Forward-Looking Information                                 12


PART II - OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K               13


SIGNATURES                                                13









                 PART I.  FINANCIAL INFORMATION

Item 1.   Financial Statements

                RYAN'S FAMILY STEAK HOUSES, INC.

               CONSOLIDATED STATEMENTS OF EARNINGS
                           (Unaudited)

              (In thousands, except per share data)

                                         Quarter Ended
                                    October 3,   September 27,
                                       2001           2000

	      	  		                    
Restaurant sales                     $188,839        177,797

Operating expenses:
 Food and beverage                     67,878         67,050
 Payroll and benefits                  57,939         53,109
 Depreciation                           7,408          7,041
 Other operating expenses              25,102         23,481
   Total operating expenses           158,327        150,681
   Operating profit                    30,512         27,116

General and administrative expenses    10,280          8,933
Interest expense                        2,642          3,507
Revenues from franchised restaurants    (316)          (291)
Other income, net                       (850)          (563)
Earnings before income taxes           18,756         15,530
Income taxes                            6,751          5,653

   Net earnings                      $ 12,005          9,877

Net earnings per common share:
 Basic                               $    .39            .31
 Diluted                                  .38            .31

Weighted-average shares:
 Basic                                 30,561         32,037
 Diluted                               31,891         32,288


See accompanying notes to consolidated financial statements.










RYAN'S FAMILY STEAK HOUSES, INC.

               CONSOLIDATED STATEMENTS OF EARNINGS
                           (Unaudited)

              (In thousands, except per share data)

                                       Nine Months Ended
                                    October 3,   September 27,
                                       2001           2000

				                          
Restaurant sales                     $565,341        527,029

Operating expenses:
 Food and beverage                    207,092        197,630
 Payroll and benefits                 170,129        157,002
 Depreciation                          21,728         20,714
 Other operating expenses              76,713         67,597
   Total operating expenses           475,662        442,943
   Operating profit                    89,679         84,086

General and administrative expenses    27,867         26,506
Interest expense                        9,368         10,182
Revenues from franchised restaurants    (991)          (904)
Other income, net                     (2,219)        (1,875)
Earnings before income taxes           55,654         50,177
Income taxes                           20,034         18,265

   Net earnings                      $ 35,620         31,912

Net earnings per common share:
 Basic                               $   1.16            .96
 Diluted                                 1.13            .95

Weighted-average shares:
 Basic                                 30,654         33,168
 Diluted                               31,607         33,472


See accompanying notes to consolidated financial statements.
















                RYAN'S FAMILY STEAK HOUSES, INC.

                   CONSOLIDATED BALANCE SHEETS
                         (In thousands)

                                    October 3,     January 3,
                                2001           2001
ASSETS                             (Unaudited)

Current assets:
                                              
 Cash and cash equivalents           $  5,851          2,098
 Receivables                            4,751          3,631
 Inventories                            4,855          5,085
 Deferred income taxes                  4,806          4,806
 Prepaid expenses                       1,345            820
   Total current assets                21,608         16,440

Property and equipment:
 Land and improvements                131,041        126,362
 Buildings                            374,648        358,415
 Equipment                            203,640        193,013
 Construction in progress              37,940         37,054
                                      747,269        714,844
 Less accumulated depreciation        201,473        182,379
   Net property and equipment         545,796        532,465
Other assets                            6,937          7,156
                                     $574,341        556,061

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                      11,802         11,003
 Income taxes payable                   7,204          3,263
 Accrued liabilities                   34,967         33,806
   Total current liabilities           53,973         48,072
Long-term debt                        178,000        192,000
Deferred income taxes                  30,829         30,628
Other long-term liabilities             3,705          2,932
   Total liabilities                  266,507        273,632

Shareholders' equity:
 Common stock of $1.00 par value; authorized
   100,000,000 shares; issued 30,501,000 in
   2001 and 31,192,000 shares in 2000  30,501         31,192
 Additional paid-in capital                38             89
 Retained earnings                    277,295        251,148
   Total shareholders' equity         307,834        282,429
Commitments
                                     $574,341        556,061


See accompanying notes to consolidated financial statements.





                RYAN'S FAMILY STEAK HOUSES, INC.
               CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)
                          (In thousands)
                                      Nine Months Ended
                                    October 3,   September 27,
                                       2001           2000

Cash flows from operating activities:
                                                
 Net earnings                        $ 35,620         31,912
 Adjustments to reconcile net earnings
  to net cash provided by operating
   activities:
   Depreciation and amortization       22,991         22,000
     Gain on sale of property and
       equipment                         (475)          (111)
   Decrease (increase) in:
     Receivables                       (1,120)          (573)
     Inventories                          230           (501)
     Prepaid expenses                    (525)          (719)
     Other assets                          17         (1,591)
   Increase in:
     Accounts payable                     799            600
     Income taxes payable               3,941          3,017
     Accrued liabilities                1,161          5,529
     Deferred income taxes                201            183
     Other long-term liabilities          773          1,624

Net cash provided by operating
    activities                         63,613         61,370
Cash flows from investing activities:
  Proceeds from sale of property and
    equipment                           5,385          4,665
 Capital expenditures                 (41,030)       (44,059)
Net cash used in investing activities (35,645)       (39,394)
Cash flows from financing activities:
 Net repayment of notes payable             -        (91,000)
 Repayment of long-term debt                -        (81,375)
   Proceeds from issuance of senior
     notes                                  -         75,000
 Net proceeds from (repayment of)
   revolving credit facility          (14,000)       119,000
 Debt issuance costs                        -         (1,565)
  Issuance of common stock under
    stock option plans                  5,332            591
 Purchases of common stock            (15,547)       (37,219)
Net cash used in financing activities (24,215)       (16,568)
Increase in cash and cash equivalents   3,753          5,408
Cash and cash equivalents - beginning
  of period                             2,098            642
Cash and cash equivalents - end
  of period                          $  5,851          6,050


See accompanying notes to consolidated financial statements.

                RYAN'S FAMILY STEAK HOUSES, INC.

         CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                           (Unaudited)

                         (In thousands)


          I.  For the Nine Months ended October 3, 2001

                         $1 Par Value Additional
                             Common   Paid-In    Retained
                              Stock    Capital   Earnings   Total

                                               
Balances at January 3, 2001 $ 31,192     89      251,148   282,429

  Net earnings                  -        -        35,620    35,620
  Issuance of common stock
   under stock option plans      683  4,649         -        5,332
  Purchases of common stock   (1,374)(4,700)      (9,473)  (15,547)

Balances at October 3, 2001 $ 30,501     38      277,295   307,834


        II.  For the Nine Months ended September 27, 2000

                           $1 Par Value Additional
                              Common     Paid-In   Retained
                       Stock     Capital   Earnings   Total
                                                 
Balances at December 29, 1999  $35,855    703      246,835   283,393

  Net earnings                    -         -       31,912    31,912
  Issuance of common stock
   under stock option plans         80    511         -          591
  Purchases of common stock     (4,034)(1,142)     (32,043)  (37,219)

Balances at September 27, 2000 $31,901     72      246,704   278,677


See accompanying notes to consolidated financial statements.















              RYAN'S FAMILY STEAK HOUSES, INC.

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                         October 3, 2001
                           (Unaudited)

Note 1.  Description of Business

Ryan's  Family  Steak Houses, Inc. operates a single-concept
restaurant  chain  consisting of 310  Company-owned  and  23
franchised  restaurants located principally in the  southern
and  midwestern  United States.  The Company,  organized  in
1977, opened its first restaurant in 1978 and completed  its
initial  public  offering in 1982.   The  Company  does  not
operate  or  franchise any international units  and  has  no
individually significant customers.

Note 2.  Basis of Presentation

The  consolidated financial statements include the financial
statements  of  Ryan's  Family Steak Houses,  Inc.  and  its
wholly-owned  subsidiaries.  All intercompany  balances  and
transactions have been eliminated in consolidation.

The accompanying unaudited consolidated financial statements
have  been prepared in accordance with accounting principles
generally  accepted  in  the United States  of  America  for
interim  financial information and the instructions to  Form
10-Q and do not include all of the information and footnotes
required by accounting principles generally accepted in  the
United  States of America for complete financial statements.
In the opinion of management, all adjustments (consisting of
normal  recurring accruals) considered necessary for a  fair
presentation  have  been  included.  Consolidated  operating
results  for the nine months ended October 3, 2001  are  not
necessarily  indicative of the results that may be  expected
for  the  fiscal year ending January 2, 2002.   For  further
information, refer to the consolidated financial  statements
and  footnotes  included in the Company's annual  report  on
Form 10-K for the fiscal year ended January 3, 2001.

Note 3.  Relevant New Accounting Pronouncements

In  October  2001, the Financial Accounting Standards  Board
issued  Statement of Financial Accounting Standards ("SFAS")
No. 144, "Accounting for the Impairment or Disposal of Long-
Lived  Assets", which is applicable to financial  statements
issued  for fiscal years beginning after December 15,  2001.
SFAS  No.  144  provides  new  rules  on  asset  impairment,
superseding SFAS No. 121, "Accounting for the Impairment  of
Long-Lived  Assets and for Long-Lived Assets to Be  Disposed
Of"  and  providing a single accounting model for long-lived
assets  to  be  disposed  of.  The Company  will  adopt  the
Statement   effective  January  3,  2002  and  is  currently
assessing the impact on its operations.

Note 4.  Contingencies

The Company received a proposed assessment in September 2001
from  the  South Carolina Department of Revenue  ("DOR")  in
connection with the DOR's audits of the Company's state  tax
returns  for  the  years  1994 through  1999.   The  Company
disagrees  strongly  with  the DOR's  findings,  intends  to
vigorously  contest the assessment and  has  in  fact  filed
refund  claims  for  substantially all of  the  years  under
audit.   The  DOR  has not yet issued a final determination.
When  the determination is issued, management believes  that
there  is  a strong likelihood that the assessment  will  be
sent  to  litigation  and  consequently  has  engaged  legal
counsel  to review the case and maintain a current  dialogue
with  the  DOR.  Accordingly, it is not possible to estimate
the  ultimate gain or loss to the Company.  In the event  of
an  unfavorable  outcome, payment of  the  full  assessment,
including interest and penalties, by the Company to the  DOR
would   not   materially  affect  the  Company's   financial
position.

Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS


RESULTS OF OPERATIONS

Quarter ended October 3, 2001 versus September 27, 2000

Restaurant sales during the third quarter of 2001  increased
by  6.2% over the comparable quarter of 2000.  Average  unit
growth,  based  on  the  average number  of  restaurants  in
operation,  for the quarter amounted to 4.2%.  Average  unit
sales  ("AUS"), or the average weekly sales volume per unit,
for   all   stores  (including  newly  opened   restaurants)
increased by 2.5%.  Same-store sales increased by  1.5%  for
the  quarter.  The Company calculates same-store sales using
AUS  in units that have been open for at least 18 months and
operating  during comparable weeks during  the  current  and
prior   year.   Same-store  sales  in  2001  were   affected
principally  by  new product introductions  and  menu  price
increases.

Total   costs  and  expenses  of  Company-owned  restaurants
include  food  and  beverage,  payroll,  payroll  taxes  and
employee   benefits,  depreciation,  repairs,   maintenance,
utilities, supplies, advertising, insurance, property  taxes
and  licenses.  Such costs, as a percentage of  sales,  were
83.8% during the third quarter of 2001 compared to 84.7%  in
2000.   Food and beverage costs decreased to 35.9% of  sales
in 2001 from 37.7% in 2000 due to lower soft drink, beef and
vegetable  costs  and  menu price  increases.   Payroll  and
benefits  increased to 30.7% of sales in 2001 from 29.9%  in
2000 due principally to higher manager pay and group medical
costs,  partially offset by lower hourly labor and  workers'
compensation costs.  Manager pay increased as a result of  a
company-wide   salary  increase  for  all  top-level   store
managers  that  was  implemented at the beginning  of  April
2001.   Group medical costs were impacted by general medical
inflation that is currently running nationally at a  13%  to
15%  annual  rate.  Hourly payroll and workers' compensation
costs  decreased due to efficiencies resulting  from  higher
AUS and lower team member accident rates, respectively.  All
other operating costs, including depreciation, were 17.2% of
sales  in both 2001 and 2000 with higher natural gas  prices
in  2001 offset by lower store closing costs.  Store closing
costs  were impacted by a gain on sale of a restaurant  that
amounted  to approximately $1.0 million, or 0.5%  of  sales.
Based  on  these  factors,  the Company's  operating  profit
amounted  to 16.2% and 15.3% of sales for the third quarters
of 2001 and 2000, respectively.

General  and administrative expenses increased  to  5.4%  of
sales  in  2001 compared to 5.0% in 2000.  Higher  franchise
taxes   in  2001  combined  with  the  write-off  of  unused
advertising  trade credits were partially  offset  by  lower
legal  costs.   The  Company obtained the trade  credits  in
connection  with  a prior year's sale of land  and  expensed
them in the third quarter of 2001 as management now believes
that  their  expected  utilization  will  be  minimal.   The
increase in AUS also favorably impacted this heavily  fixed-
cost category.

Interest  expense for the third quarters of  2001  and  2000
amounted  to  1.4%  and  2.0% of sales,  respectively.   The
effective average interest rate decreased to 6.7% during the
third  quarter  of  2001 from 8.4% in 2000,  resulting  from
favorable  interest  rate  trends.   At  October  3,   2001,
approximately  58%  of  the Company's outstanding  debt  was
variable-rate  debt with interest rates based  generally  on
the  London  Interbank  Offered Rate  ("LIBOR").   Based  on
current  LIBOR rates and recent actions by the U.S.  Federal
Reserve  Bank,  management expects favorable  interest  rate
comparisons during the remainder of 2001.

Effective income tax rates of 36.0% and 36.4% were used  for
the  second  quarters of 2001 and 2000,  respectively.   The
lower  rate  in 2001 resulted from the favorable  impact  of
various tax-planning strategies.

Net earnings for the third quarter amounted to $12.0 million
in  2001 compared to $9.9 million in 2000.  Weighted-average
shares (diluted) decreased 1.2% resulting from the Company's
stock   repurchase  program  (see  "Liquidity  and   Capital
Resources").   Accordingly,  earnings  per  share  (diluted)
increased by 22.6% to 38 cents in 2001 compared to 31  cents
in 2000.

Nine months ended October 3, 2001 versus September 27, 2000

For  the nine months ended October 3, 2001, restaurant sales
increased  by  7.3%  compared to the same  period  in  2000.
Principal  factors affecting 2001 sales growth  include  (a)
the  4.5%  unit growth of Company-owned restaurants,  (b)  a
2.4%  increase in all-store AUS, and (c) the absence of  the
week  containing New Year's Day 2001 from the 2001  amounts.
This  week, which traditionally is a slower sales week,  was
included  in the results for the fourth quarter of 2000  due
to its January 3, 2001 ending date.  The week containing New
Year's  Day 2000 was included in the results for  the  first
nine  months of 2000.  Same-store sales for the  first  nine
months of 2001 increased by 1.4%.

Nine-month  costs and expenses as detailed above were  84.1%
and  84.0% of sales for 2001 and 2000, respectively.  During
the  first nine months of 2001, costs and expenses were most
affected  by  lower food and beverage costs  (down  0.9%  of
sales)   resulting   from  lower  beef,  produce,   poultry,
vegetable and soy-based product costs.  Payroll and benefits
increased  by  0.3% of sales due to higher manager  pay  and
group  medical costs, partially offset by lower hourly labor
and workers' compensation costs.  All other operating costs,
including  depreciation, increased  by  0.6%  of  sales  due
principally  to higher natural gas prices.  Based  on  these
factors,  the  Company's operating margin at the  restaurant
level  amounted to 15.9% of sales for the first nine  months
of 2001 compared to 16.0% of sales in 2000.

General  and administrative expenses decreased  by  0.1%  of
sales  for the first nine months of 2001 due to lower  media
advertising  and  professional fees for  the  current  year,
partially  offset by higher performance-based  compensation.
A reduction in the average interest rate associated with the
Company's  revolving  credit facility  (see  "Liquidity  and
Capital  Resources") caused interest expense to decrease  by
0.3% of sales from the prior year.

Effective income tax rates of 36.0% and 36.4% were used  for
the  first nine months of 2001 and 2000, respectively.   The
lower  rate  in 2001 resulted from the favorable  impact  of
various tax-planning strategies.

Net  earnings for the first nine months of 2001 amounted  to
$35.6  million compared to $31.9 million in 2000.  Weighted-
average  shares (diluted) decreased 5.6% resulting from  the
Company's  stock  repurchase  program  (see  "Liquidity  and
Capital   Resources").   Accordingly,  earnings  per   share
(diluted)  increased by 18.9% to $1.13 in 2001  compared  to
$0.95 in 2000.


LIQUIDITY AND CAPITAL RESOURCES

The  Company's restaurant sales are primarily  derived  from
cash.   Inventories are purchased on credit and are  rapidly
converted to cash.  Therefore, the Company does not maintain
significant  receivables or inventories, and  other  working
capital requirements for operations are not significant.

At  October  3,  2001, the Company's working capital  was  a
$32.4 million deficit compared to a $31.6 million deficit at
January  3,  2001.   The  Company does  not  anticipate  any
adverse effects from the current working capital deficit due
to  significant  cash  flow provided  by  operations,  which
amounted to $63.6 million for the first nine months of  2001
and $79.4 million for the year ended January 3, 2001.

Total capital expenditures for the first nine months of 2001
amounted  to  $41.0 million.  The Company opened  12  Ryan's
restaurants during the first nine months of 2001,  including
four  relocations.   Management defines a  relocation  as  a
restaurant  opened  within 18 months after  closing  another
restaurant   in  the  same  marketing  area.   A  relocation
represents  a redeployment of assets within a  market.   For
all of 2001, the Company plans to open a total of 16 Ryan's,
including five relocations.  Total capital expenditures  for
2001  are  estimated at $56 million.  Expansion of  Company-
owned  restaurants  is expected to occur  in  states  either
within  or  contiguous  to  the Company's  current  22-state
operating area.  The Company is currently concentrating  its
efforts  on Company-owned units and is not actively pursuing
any  additional  franchised locations,  either  domestic  or
international.

The  Company began a stock repurchase program in March  1996
and  is  currently authorized to repurchase a total of  30.0
million   shares  of  the  Company's  common  stock  through
December 2002.  Repurchases may be made from time to time on
the  open market or in privately negotiated transactions  in
accordance with applicable securities regulations, depending
on market conditions, share price and other factors.  During
the  first  nine  months  of  2001,  the  Company  purchased
1,374,600  shares  at an aggregate cost  of  $15.5  million.
Since   the   beginning  of  the  program  in  March   1996,
approximately  24.9 million shares, or 47% of  total  shares
available  at  the  beginning  of  the  program,  had   been
purchased   at   an   aggregate  cost  of  $237.4   million.
Management  intends  to proceed with the repurchase  program
during  2001,  subject  to  the  continued  availability  of
capital  and the other factors described below in  "Forward-
Looking  Information".   The  Company  is  prohibited   from
repurchasing stock after 2002 per the current provisions  of
the credit agreement governing the revolving credit facility
(see next paragraph).

The  extent  of the Company's external funding  requirements
for  2001  is  dependent upon the level of stock  repurchase
transactions during the year.  Based on current target  debt
levels,   a   maximum  repurchase  scenario  would   require
approximately  $23  million of additional borrowings  during
the  remainder of 2001.  All other funding needs,  including
capital  expenditures, are expected to be met by  internally
generated   cash   from  operations.   The  Company's   debt
structure  at  October 3, 2001 consisted of $75  million  of
9.02%  senior  notes and $103 million in  outstanding  notes
under  a $200 million revolving credit facility.  The senior
notes are due in 2008 with principal payments commencing  in
2005.   The  revolving credit facility is due  in  2005  and
bears  interest at various floating interest  rates  plus  a
variable  spread currently set at 1.375%.  After  allowances
for   letters   of  credit  and  other  items,   there   was
approximately  $89  million  in funds  available  under  the
revolving  credit facility.  However, the Company's  ability
to draw on these funds may be limited by restrictions in the
loan  agreements  governing both the senior  notes  and  the
revolving  credit  facility.  The  loan  agreements  contain
minimum  net worth requirements and maximum leverage  ratios
as  well  as  restrictions on future stock repurchases  (see
preceding   paragraph),  dividends,  capital   expenditures,
investments and sales of assets.  As of October 3, 2001, the
Company  exceeded  the most restrictive  minimum  net  worth
requirement in the agreements by $51.4 million.  Both  loans
are secured by the stock of the Company and its wholly-owned
subsidiaries.

Management  believes that its current capital  structure  is
sufficient  to  meet its capital requirements through  2002.
Interest  rates for the revolving credit facility  have  not
been  fixed and generally change in response to LIBOR.   The
Company  has entered into interest rate hedging transactions
in  the  past and, although no such agreements are currently
outstanding,  management intends to continue monitoring  the
interest   rate   environment  and  may  enter   into   such
transactions in the future if deemed advantageous.


IMPACT OF INFLATION

The  Company's  operating  costs that  may  be  affected  by
inflation  consist principally of food, payroll and  utility
costs.   A  significant  number of the Company's  restaurant
team  members  are  paid at the Federal  minimum  wage  and,
accordingly, legislated changes to the minimum  wage  affect
the  Company's  payroll  costs.  Although  no  minimum  wage
increases  have  been signed into law, this issue  has  been
discussed  frequently  during  recent  months  in  the   U.S
Congress.   The  most  publicized  proposal  increases   the
minimum  wage  by $1.50 to $6.55 per hour in  several  steps
with  a  final  implementation date that has  not  yet  been
determined.  The Company is typically able to increase  menu
prices to offset most of the payroll rate increases.

The Company considers its current price structure to be very
competitive.   This factor, among others, is  considered  by
the Company when passing cost increases on to its customers.
Annual menu price increases have generally ranged from 3% to
5%.


Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK

The  Company's exposure to market risk relates primarily  to
changes in interest rates.  Foreign currencies are not  used
in  the  Company's operations, and commodities used  in  the
preparation  of  food at the Company's restaurants  are  not
under purchase contract for more than one year in advance.

The Company is exposed to interest rate risk on its variable-
rate  debt,  which is composed entirely of outstanding  debt
under   the   Company's  revolving  credit   facility   (see
"Liquidity  and  Capital Resources").  At October  3,  2001,
there  was  $103  million  in outstanding  debt  under  this
facility.  Interest rates for the facility generally  change
in  response  to LIBOR.  Management estimates  that  a  one-
percent  change  in  interest rates throughout  the  quarter
ended  October 3, 2001 would have impacted interest  expense
by approximately $228,000 and net earnings by $146,000.

While  the Company has entered into interest rate derivative
agreements  in  the  past,  there were  no  such  agreements
outstanding  as  of October 3, 2001.  The Company  does  not
enter  into  financial instrument agreements for trading  or
speculative purposes.


                   FORWARD-LOOKING INFORMATION

In accordance with the safe harbor provisions of the Private
Securities  Litigation  Reform  Act  of  1995,  the  Company
cautions  that the statements in this report and  elsewhere,
which  are  forward-looking and  which  provide  other  than
historical information, involve risks and uncertainties that
may  impact the Company's actual results of operations.  All
statements  other  than statements of historical  fact  that
address  activities, events or developments that the Company
expects  or  anticipates will or may occur  in  the  future,
including  such things as deadlines for completing projects,
expected  financial  results  and  other  such  matters  are
forward-looking statements.  The words "estimate",  "plans",
"anticipate", "expects", "intends", "believes", and  similar
expressions   are   intended  to  identify   forward-looking
statements.   All forward-looking information  reflects  the
Company's   best  judgment  based  on  current  information.
However,  there can be no assurance that other factors  will
not  affect the accuracy of such information.  While  it  is
not  possible  to identify all factors, the following  could
cause actual results to differ materially from expectations:
general   economic  conditions;  competition;   developments
affecting    the   public's   perception   of   buffet-style
restaurants; real estate availability; food and labor supply
costs;  food  and labor availability; weather  fluctuations;
interest  rate  fluctuations; stock market  conditions;  and
other  risks and factors described from time to time in  the
Company's  reports  filed with the Securities  and  Exchange
Commission, including the Company's annual report on Form 10-
K for the fiscal year ended January 3, 2001.  The ability of
the Company to open new restaurants depends upon a number of
factors,  including  its ability to find suitable  locations
and  negotiate acceptable land acquisition and  construction
contracts,  its  ability to attract  and  retain  sufficient
numbers  of  restaurant managers and team members,  and  the
availability  of reasonably priced capital.  The  extent  of
the  Company's  stock  repurchase program  during  2001  and
future  years depends upon the financial performance of  the
Company's restaurants, the investment required to  open  new
restaurants,  share  price, the availability  of  reasonably
priced  capital,  the financial covenants contained  in  the
agreements governing both the senior notes and the revolving
credit facilities, and the maximum debt and share repurchase
levels authorized by the Company's Board of Directors.

PART II.  OTHER INFORMATION

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

       (a)None.
       (b)On  July  9,  2001, the Company filed a report  on
           Form  8-K  regarding sales information  for  June
           2001.
          On  August  13, 2001, the Company filed  a  report
           on  Form 8-K regarding sales information for July
           2001.
          On   September  10,  2001,  the  Company  filed  a
           report  on  Form 8-K regarding sales  information
           for August 2001.
          On  October  9, 2001, the Company filed  a  report
           on  Form  8-K  regarding  sales  information  for
           September 2001.
          On  November 13, 2001, the Company filed a  report
           on  Form  8-K  regarding  sales  information  for
           October 2001.


                           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.

                RYAN'S FAMILY STEAK HOUSES, INC.
                          (Registrant)




November 19, 2001        /s/Charles D. Way
                         Charles D. Way
                         Chairman, President and Chief
                         Executive Officer




November 19, 2001        /s/Fred T. Grant, Jr.
                         Fred T. Grant, Jr.
                         Senior Vice President-Finance and
                         Treasurer




November 19, 2001        /s/Richard D. Sieradzki
                         Richard D. Sieradzki
                         Controller