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 July 3, 2002

                   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 July 3, 2002, there were 43,510,000 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 July 3, 2002 and July 4, 2001  3

       Consolidated Statements of Earnings (Unaudited) -
       Six Months Ended July 3, 2002 and July 4, 20014

       Consolidated Balance Sheets -
       July 3, 2002 (Unaudited) and January 2, 2002  5

       Consolidated Statements of Cash Flows (Unaudited) -
       Six Months Ended July 3, 2002 and July 4, 20016

       Consolidated Statements of Shareholders' Equity
       (Unaudited) -
       Six Months Ended July 3, 2002 and July 4, 20017

       Notes to Consolidated Financial Statements
       (Unaudited)                                 8 - 9

Item 2.Management's Discussion and Analysis of Financial
       Condition
       and Results of Operations                  10 - 13

Item 3.Quantitative And Qualitative Disclosures About
       Market Risk                                   13

Forward-Looking Information                           14


PART II -                                     OTHER INFORMATION

Item 4.                      Submission of Matters to a Vote of Security Holders
15

Item 6.                                Exhibits and Reports on Form 8-K
15


SIGNATURES                                            16

                 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
                                     July 3,        July 4,
                                       2002           2001
                                               
Restaurant sales                     $201,027        192,606

Operating expenses:
 Food and beverage                     71,480         70,116
 Payroll and benefits                  60,952         57,143
 Depreciation                           7,351          7,266
 Other operating expenses              26,089         26,245
   Total operating expenses           165,872        160,770
   Operating profit                    35,155         31,836

General and administrative expenses     9,578          9,338
Interest expense                        2,326          3,360
Revenues from franchised restaurants    (463)          (325)
Other income, net                       (530)          (591)
Earnings before income taxes           24,244         20,054
Income taxes                            8,818          7,220

   Net earnings                      $ 15,426         12,834

Net earnings per common share:
 Basic                               $    .35            .28
 Diluted                                  .34            .27

Weighted-average shares:
 Basic                                 43,733         45,507
 Diluted                               45,977         46,958

See accompanying notes to consolidated financial statements.

                RYAN'S FAMILY STEAK HOUSES, INC.

               CONSOLIDATED STATEMENTS OF EARNINGS
                           (Unaudited)

              (In thousands, except per share data)

  
                                      Six Months Ended
                                     July 3,        July 4,
                                       2002           2001
                                               
Restaurant sales                     $394,597        376,502

Operating expenses:
 Food and beverage                    142,202        138,199
 Payroll and benefits                 119,278        112,190
 Depreciation                          14,703         14,320
 Other operating expenses              52,377         51,611
   Total operating expenses           328,560        316,320
   Operating profit                    66,037         60,182

General and administrative expenses    18,787         18,602
Interest expense                        4,601          6,726
Revenues from franchised restaurants    (895)          (675)
Other income, net                     (1,671)        (1,369)
Earnings before income taxes           45,215         36,898
Income taxes                           16,368         13,283

   Net earnings                      $ 28,847         23,615

Net earnings per common share:
 Basic                               $    .65            .51
 Diluted                                  .62            .50

Weighted-average shares:
 Basic                                 44,284         46,050
 Diluted                               46,557         47,198

See accompanying notes to consolidated financial statements.


                RYAN'S FAMILY STEAK HOUSES, INC.

                   CONSOLIDATED BALANCE SHEETS
                         (In thousands)

                                     July 3,       January 2,
                                       2002           2002
ASSETS                             (Unaudited)
                                              
Current assets:
 Cash and cash equivalents           $ 10,833         13,323
 Receivables                            4,512          4,806
 Inventories                            4,726          5,091
 Deferred income taxes                  5,048          5,048
 Prepaid expenses                       2,267            816
   Total current assets                27,386         29,084

Property and equipment:
 Land and improvements                134,836        132,074
 Buildings                            388,937        379,254
 Equipment                            216,243        207,150
 Construction in progress              42,693         38,145
                                     782,709        756,623
 Less accumulated depreciation        219,935        209,514
   Net property and equipment         562,774        547,109
Other assets                            7,478          6,936
                                    $597,638        583,129

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                      12,813         13,472
 Income taxes payable                   6,422          3,238
 Accrued liabilities                   39,616         36,333
   Total current liabilities           58,851         53,043
Long-term debt                        195,000        178,000
Deferred income taxes                  31,583         31,419
Other long-term liabilities             4,679          3,913
   Total liabilities                  290,113        266,375

Shareholders' equity:
 Common stock of $1.00 par value; authorized
  100,000,000 shares; issued 43,510,000 in
  2002 and 45,816,000 shares in 2001   43,510         45,816
 Additional paid-in capital             1,686          5,042
 Retained earnings                    262,329        265,896
   Total shareholders' equity         307,525        316,754
Commitments
                                     $597,638        583,129


See accompanying notes to consolidated financial statements.

        RYAN'S FAMILY STEAK HOUSES, INC.

              CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Unaudited)

                         (In thousands)

                                        Six Months Ended
                                     July 3,        July 4,
                                       2002           2001
Cash flows from operating activities:
                                               
 Net earnings                        $ 28,847         23,615
 Adjustments to reconcile net earnings to
  net cash provided by operating activities:
   Depreciation and amortization       15,385         15,147
     Gain   on   sale  of  property  and  equipment           (8)
(74)
    Tax  benefit  related to stock options  exercised       1,686
1,104
   Decrease (increase) in:
     Receivables                          294        (1,523)
     Inventories                          365             49
     Prepaid expenses                  (1,451)         (474)
     Other assets                       (681)          (347)
   Increase (decrease) in:
     Accounts payable                   (659)          6,283
     Income taxes payable               1,498          5,570
     Accrued liabilities                3,283          3,674
     Deferred income taxes                164            133
     Other long-term liabilities          766            565

Net   cash  provided  by  operating  activities            49,489
53,722

Cash flows from investing activities:
  Proceeds  from  sale of property and  equipment           3,697
612
 Capital expenditures                (34,600)       (29,182)

Net  cash  used  in  investing activities                (30,903)
(28,570)

Cash flows from financing activities:
  Net  borrowings  from revolving credit facility          17,000
-
 Proceeds from stock options exercised  4,438          2,904
 Purchases of common stock           (42,514)       (11,883)

Net  cash  used  in  financing activities                (21,076)
(8,979)

Increase  (decrease)  in  cash and cash  equivalents      (2,490)
16,173

Cash  and  cash  equivalents - beginning of  period        13,323
2,098

Cash  and  cash  equivalents - end  of  period    $        10,833
18,271


See accompanying notes to consolidated financial statements.
                RYAN'S FAMILY STEAK HOUSES, INC.

         CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                           (Unaudited)

                         (In thousands)


            I.  For the Six Months ended July 3, 2002

                           $1 Par Value  Additional
                            Common       Paid-In   Retained
                            Stock        Capital   Earnings   Total
                                                
Balances at January 2, 2002 $45,816       5,042   265,896   316,754

  Net earnings                  -           -      28,847    28,847
  Issuance of common stock
   under stock option plans     525       2,227      -        2,752
  Tax benefit from exercise of
   non-qualified stock options   -        1,686      -        1,686
  Purchases of common stock  (2,831)     (7,269)  (32,414)  (42,514)

Balances at July 3, 2002    $43,510       1,686   262,329   307,525



           II.  For the Six Months ended July 4, 2001

                          $1 Par Value   Additional
                           Common        Paid-In   Retained
                           Stock         Capital   Earnings   Total
                                                  
Balances at January 3, 2001 $46,788          -      235,641   282,429

  Net earnings                 -             -       23,615    23,615
  Issuance of common stock
   under stock option plans      591        1,209      -        1,800
  Tax benefit from exercise of
   non-qualified stock options  -           1,104      -        1,104
  Purchases of common stock   (1,706)      (1,080)   (9,097)  (11,883)

Balances at July 4, 2001     $45,673        1,233   250,159   297,065


See accompanying notes to consolidated financial statements.
                RYAN'S FAMILY STEAK HOUSES, INC.

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                          July 3, 2002
                           (Unaudited)

Note 1.  Description of Business

Ryan's  Family  Steak Houses, Inc. operates a single-concept
restaurant  chain  consisting of 316  Company-owned  and  22
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.

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  six months ended July  3,  2002  are  not
necessarily  indicative of the results that may be  expected
for  the  fiscal year ending January 1, 2003.   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 2, 2002.

Note 3.  Relevant New Accounting Pronouncements

In  June  2001,  the  Financial Accounting  Standards  Board
("FASB")  issued Statement of Financial Accounting Standards
("SFAS") No. 141, "Business Combinations," and SFAS No. 142,
"Goodwill  and  Other  Intangible Assets."   Under  the  new
rules,  goodwill and other intangible assets with indefinite
lives are no longer amortized but are reviewed annually  for
impairment.  Separable intangible assets that are not deemed
to  have  an  indefinite life will continue to be  amortized
over  their  useful  lives.  The Company applied  these  new
accounting rules on January 3, 2002 and believes that  their
application did not materially impact the accompanying  2002
financial statements.

The   FASB  issued  SFAS  No.  143,  "Accounting  for  Asset
Retirement Obligations" in June 2001.  SFAS No. 143  applies
to  legal  obligations  associated with  the  retirement  of
certain  tangible  long-lived  assets.   This  statement  is
effective  for fiscal years beginning after June  15,  2002.
Accordingly,  the  Company  will  adopt  this  statement  on
January 2, 2003.  The Company believes the adoption of  SFAS
143  will  not  have  a  material impact  on  its  financial
statements.

In  August  2001, the FASB issued SFAS No. 144,  "Accounting
for  the Impairment or Disposal of Long-Lived Assets."  This
statement  addresses financial accounting and reporting  for
the   impairment  of  disposal  of  long-lived  assets   and
supersedes  SFAS No. 121, "Accounting for the Impairment  of
Long-Lived  Assets and for Long-Lived Assets to be  Disposed
Of."   SFAS  No. 144 is effective for fiscal years beginning
after  December  15, 2001 and interim periods  within  those
fiscal  years.  The Company adopted the Statement  effective
January 3, 2002 with no impact on its 2002 results.

Note 4.  Stock Split

On May 1, 2002, Ryan's board of directors approved a 3-for-2
stock split of the Company's common shares in the form of  a
50% stock dividend.  Accordingly, shareholders of record  on
May  15, 2002 received an additional common share for  every
two   shares   they  held.   The  additional   shares   were
distributed  on  May  29, 2002.  All  share  and  per  share
amounts  in the accompanying financial statements have  been
restated to reflect the stock split.

Note 5.  Reclassifications

Certain  prior year amounts in the accompanying consolidated
financial  statements have been reclassified to  conform  to
the  2002  presentation.   These reclassifications  did  not
affect the prior year's net income or stockholders' equity.

Note 6.  Subsequent Event

On  July 22, 2002 at a Special Meeting of Shareholders,  the
Company's  shareholders approved the 2002 Stock Option  Plan
under  which 3,600,000 shares of the Company's common  stock
were made available for future stock option grants.


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


RESULTS OF OPERATIONS

Quarter ended July 3, 2002 versus July 4, 2001

Restaurant sales during the second quarter of 2002 increased
by  4.4% over the comparable quarter of 2001.  Average  unit
growth,  based  on  the  average number  of  restaurants  in
operation,  amounted to 2.6% for the quarter.  Average  unit
sales  ("AUS"), or the average weekly sales volume per unit,
for   all   stores  (including  newly  opened   restaurants)
increased by 2.1%.  Same-store sales increased by  0.7%  for
the  quarter  compared  to a 0.4% increase  for  2001.   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 years.   Same-
store  sales in 2002 were favorably affected by new  product
introductions and menu price increases, but trended downward
during  the quarter, declining from +1.8% in April to  -0.1%
in  June.  All store formats, including Display Cooking (see
"Liquidity  and  Capital Resources") were  affected  by  the
decline.    In   addition,   first-year   Display    Cooking
conversions showed average sales increases ranging  from  3%
to  5%  during the quarter compared to management's expected
increases of approximately 15% and a first quarter 2002 peak
of  +10%.   Based  on continued high sales  volumes  at  new
Display Cooking restaurants, management continues to believe
that  Display  Cooking has consumer appeal and that  current
sales   trends  can  be  improved  with  better  store-level
execution and training.

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
82.5% during the second quarter of 2002 compared to 83.5% in
2001.   Food and beverage costs decreased to 35.6% of  sales
in  2002  from  36.4% of sales in 2001 due  to  lower  beef,
seafood,  and pork costs combined with menu price increases,
partially offset by higher potato, soybean-oil products  and
distribution costs.  Payroll and benefits increased to 30.3%
of sales in 2002 from 29.7% of sales in 2001 due principally
to  higher  manager  pay  and workers'  compensation  costs.
Manager pay increased as a result of improved retention  and
higher performance bonuses, and workers' compensation  costs
increased  due  to  higher projected per claim  costs.   All
other operating costs, including depreciation, decreased  to
16.6% of sales in 2002 from 17.4% in 2001 due principally to
lower natural gas and store closing costs in 2002.  Based on
these  factors, the Company's operating profit increased  by
1.0%  of sales to 17.5% of sales in 2002 from 16.5% of sales
in 2001.

General and administrative expenses remained flat at 4.8% of
sales in both 2002 and 2001.

Interest  expense for the second quarters of 2002  and  2001
amounted  to  1.2%  and  1.7% of sales,  respectively.   The
effective average interest rate decreased to 5.5% during the
second  quarter of 2002 from 7.9% in 2001, resulting from  a
favorable  interest  rate environment.   At  July  3,  2002,
approximately  62%  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 management believes that the  effective
interest  rate  comparisons will remain favorable  at  least
through the third quarter of 2002.

An  effective  income tax rate of 36.4%  was  used  for  the
second  quarter  of 2002 compared to 36.0%  for  the  second
quarter  of  2001 due to management's revised projection  of
overall 2002 income tax expense.

Net  earnings  for  the  second quarter  amounted  to  $15.4
million in 2002 compared to $12.8 million in 2001.  Weighted-
average  shares (diluted) decreased 2.1% resulting from  the
Company's  stock  repurchase  program  (see  "Liquidity  and
Capital   Resources").   Accordingly,  earnings  per   share
(diluted) increased by 25.9% to 34 cents in 2002 compared to
27 cents in 2001.

Six months ended July 3, 2002 versus July 4, 2001

For the six months ended July 3, 2002, restaurant sales were
up  4.8%  compared  to the same period in  2001.   Principal
factors  affecting the 2002 sales growth include  2.9%  unit
growth  of Company-owned restaurants and a 2.1% increase  in
all-store  AUS.  Same-store AUS for the first six months  of
2002 increased by 0.7%.

Six-month  costs and expenses as detailed above  were  83.3%
and  84.0% of sales for 2002 and 2001, respectively.  During
the  first six months of 2002, costs and expenses were  most
affected  by  lower food and beverage costs  (down  0.7%  of
sales)  resulting from lower beef, seafood, dairy  and  pork
costs.   Payroll  and benefits increased 0.4%  of  sales  to
30.2%  of  sales for 2002 from 29.8% for 2001 due to  higher
manager  pay  and  workers'  compensation  costs,  partially
offset by lower medical expense.  All other operating costs,
including  depreciation, decreased by 0.5% of sales  due  to
lower  natural gas and store closing costs.  Based on  these
factors,  the  Company's operating margin at the  restaurant
level amounted to 16.7% of sales for the first six months of
2002 compared to 16.0% of sales in 2001.

General  and administrative expenses decreased  by  0.2%  of
sales  for  the first six months of 2002 due principally  to
lower  performance-based bonus costs.  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  0.6%  of
sales from the prior year.

Effective income tax rates of 36.2% and 36.0% were used  for
the first six months of 2002 and 2001, respectively.

Net  earnings for the first six months of 2002  amounted  to
$28.8  million compared to $23.6 million in 2001.  Weighted-
average  shares (diluted) decreased 1.4% resulting from  the
Company's  stock  repurchase  program  (see  "Liquidity  and
Capital   Resources").   Accordingly,  earnings  per   share
(diluted) increased by 24.0% to 62 cents in 2002 compared to
50 cents in 2001.


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, generally prior to the payment  of  the
related vendors' invoices.  Therefore, the Company does  not
maintain  significant receivables or inventories, and  other
working   capital  requirements  for  operations   are   not
significant.    Cash   balances  in  excess   of   immediate
disbursement requirements are typically used for non-current
uses,  such as capital expenditures, repayment of  long-term
debt   or   share  repurchases.   Accordingly,  the  Company
operates  with a working capital deficit, which  is  managed
through  the  utilization of a significant  and  predictable
cash flow from restaurant sales and available credit under a
revolving credit facility.

At  July  3,  2002,  the Company's working  capital  deficit
amounted  to  $31.5  million compared  to  a  $24.0  million
deficit  at January 2, 2002.  Management does not anticipate
any adverse effects from the current working capital deficit
due  to (i) cash flow provided by operations, which amounted
to  $49.5 million for the first six months of 2002 and $84.9
million  for  the  year  ended January  2,  2002,  and  (ii)
approximately  $69  million  in  funds  available  under   a
revolving credit facility.

Total capital expenditures for the first six months of  2002
amounted  to $34.6 million. The Company opened eight  Ryan's
restaurants  during the first six months of 2002,  including
three  relocations,  and closed five restaurants,  including
three due to relocation.  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
the  remainder of 2002, the Company plans to build and  open
11  new  restaurants, including three relocations.  All  new
restaurants  will open with Ryan's Display  Cooking  format.
This  format  was introduced in 2000 and involves  a  glass-
enclosed grill and cooking area that extends into the dining
room.  A variety of meats are grilled daily and available to
customers  as  part of the buffet price.  Customers  go  the
grill  and  can get hot, cooked-to-order steak,  chicken  or
other  grilled  items placed directly from  the  grill  onto
their plate.  Management intends to remodel approximately 35
restaurants  during  2002 with the Display  Cooking  format.
Total  2002  capital  expenditures  are  estimated  at   $73
million.  The Company is currently concentrating its efforts
on  Company-owned  Ryan's restaurants and  is  not  actively
pursuing   any   additional  franchised  locations,   either
domestically or internationally.

The  Company began a stock repurchase program in March  1996
and  is  currently authorized to repurchase up to 55 million
shares of the Company's common stock through December  2005.
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
six  months of 2002, the Company purchased 2,825,100  shares
at  an  aggregate  cost of $42.5 million.  Through  July  3,
2002,  approximately 40.8 million shares, or  51%  of  total
shares available at the beginning of the repurchase program,
had  been  purchased at an aggregate cost of $286.7 million.
The  Company  purchased an additional 299,400  shares  since
July  3,  2002  at an aggregate cost of $3.5  million.   The
Company  completed  substantially  all  of  its  2002  share
repurchase plan during the first six months of 2002, but may
repurchase an additional $2.0 million to $4.0 million of its
common  stock during the remainder of the year if management
believes  that  the  share price is at an attractive  level,
subject  to  the  continued  availability  of  capital,  the
limitations   imposed  by  the  Company's   current   credit
agreements, applicable securities regulations and the  other
factors  described  in "Forward-Looking  Information".   The
Company  is  currently  prohibited from  repurchasing  stock
after  2002  by the terms of its revolving credit  facility.
Management  is currently discussing potential  revisions  to
this covenant with its lenders.

At July 3, 2002, the Company's outstanding debt consisted of
$75  million  of  9.02%  senior notes  and  a  $200  million
revolving   credit  facility  of  which  $120  million   was
outstanding at that date.  As noted above, after  allowances
for   letters   of  credit  and  other  items,   there   was
approximately  $69  million  in funds  available  under  the
revolving credit facility.  The Company's ability to draw on
these funds may be limited by restrictions in the agreements
governing  both  the senior notes and the  revolving  credit
facility.   Management believes that, based on  its  current
plans,  these  restrictions will not  impair  the  Company's
operations during 2002.

Management  believes that its current capital  structure  is
sufficient  to meet its 2002 requirements.  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.


CRITICAL ACCOUNTING POLICIES

Critical accounting policies are defined as those that  have
significant impact on the Company's financial statements and
involve  difficult or subjective estimates of future  events
by   management.    Management's  estimates   could   differ
significantly  from  actual  results,  leading  to  possible
significant adjustments to future financial results.

Management  believes  that  the Company's  policy  regarding
asset  impairment is the Company's sole critical  accounting
policy.  This policy generally applies to the recoverability
of  a  restaurant's carrying amount.  For  restaurants  that
will  continue  to  be  operated,  the  carrying  amount  is
compared  to  the undiscounted future cash flows,  including
proceeds  from  future  disposal, of  the  restaurant.   The
estimate  of  future  cash flows is  based  on  management's
review  of  historical and current sales and cost trends  of
both  the subject and similar restaurants.  The estimate  of
proceeds  from  future  disposal is  based  on  management's
knowledge  of  current  and  planned  development  near  the
restaurant site and on current market transactions.  If  the
carrying amount is not recoverable, or less than the sum  of
the  undiscounted future cash flows, the carrying  value  is
reduced to the restaurant's current fair value less costs to
sell  ("Current Market Proceeds").  The estimate of  Current
Market Proceeds is based on current market transactions  for
similar restaurants.  If the decision has been made to close
a  restaurant,  the  carrying value of  that  restaurant  is
reduced to its Current Market Proceeds.


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, legislation  proposing
to  increase the minimum wage by $1.50 to $6.65 per hour was
introduced  In  the U.S. Senate in May 2002.  This  proposed
legislation  would  increase the  minimum  wage  in  several
increments with the $6.65 rate being in place at January  1,
2004.  The Company is typically able to increase menu prices
to cover 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 during the last five years  have
generally ranged from 2% to 4%.


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 approximately 90% of  the
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 July 3, 2002,  there
was  $120  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  July  3,  2002
would   have  impacted  interest  expense  by  approximately
$248,000 and net earnings by $159,000.

While  the Company has entered into interest rate derivative
agreements  in  the  past,  there were  no  such  agreements
outstanding as of July 3, 2002.  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  annual  report  and
elsewhere   that  are  forward-looking  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,
expected regulatory environment and other such matters,  are
forward-looking statements.  The words "estimates", "plans",
"anticipates", "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 including consumer  confidence
levels;  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;    political
environment; 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  2,
2002.   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  2002  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 Company's loan  agreements  that
govern  the senior notes and the revolving credit  facility,
and  the maximum debt and share repurchase levels authorized
by the Company's Board of Directors.


                   PART II.  OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders.

       (a)  The following table summarizes the results of the
          shareholder votes cast at the Annual Meeting of Shareholders held
          on May 1, 2002 (all votes, as adjusted for the stock split
          effected May 15, 2002, are in thousands):

                                                 Broker-
                   For  Against Withheld Abstain Nonvotes

(i) Election of Directors:
                                    
C. D. Way        30,507   n/a    9,827     n/a      n/a
G. E. McCranie   40,044   n/a      290     n/a      n/a
B. L. Edwards    40,043   n/a      290     n/a      n/a
J. M. Shoemaker,Jr.39,777 n/a      552     n/a      n/a
H. K. Roberts,Jr.40,043   n/a      291     n/a      n/a
J. D. Cockman    40,040   n/a      294     n/a      n/a
B. S. MacKenzie  40,044   n/a      290     n/a      n/a

(ii) Approval of
     2002 Stock
     Option Plan 16,770  18,039    n/a     87       5,438


(iii) Ratify the
      appointment
      of KPMG LLP
      for fiscal
      2003       40,050     251    n/a      33      n/a


       (b)  The following table summarizes the results of the
          shareholder votes cast at a Special Meeting of Shareholders held
          on July 22, 2002 (all votes are in thousands):

                                                        Broker-
                         For  Against Withheld  Abstain Nonvotes

Approval of 2002                              
Stock Option Plan      17,156   9,309    n/a       80     10,905



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

       (a)  None.
       (b)  On  May 1, 2002, the Company  filed a report on Form 8-K
            regarding  the Board  of  Directors' approval of a 3-for-2  stock
            split.

                           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)




August 19, 2002          /s/Charles D. Way
                         Charles D. Way
                         Chairman, President and Chief
                         Executive Officer




August 19, 2002          /s/Fred T. Grant, Jr.
                         Fred T. Grant, Jr.
                         Senior Vice President-Finance and
                         Treasurer




August 19, 2002          /s/Richard D. Sieradzki
                         Richard D. Sieradzki
                         Controller