<ARTICLE>                                           5
<LEGEND>                                                   
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>                                                  
<CIK>                                            0000914565
<NAME>                        MANHATTAN BAGEL COMPANY, INC.
                                                     
                                                   
<PERIOD-TYPE>                                         3-MOS
<FISCAL-YEAR-END>                               DEC-31-1998
<PERIOD-START>                                  JUN-30-1998
<PERIOD-END>                                    SEP-30-1998
<CASH>                                           $3,745,212
<SECURITIES>                                              0
<RECEIVABLES>                                     5,743,726
<ALLOWANCES>                                     (3,103,967)
<INVENTORY>                                       1,011,898
<CURRENT-ASSETS>                                  7,997,728
<PP&E>                                           16,476,608
<DEPRECIATION>                                   (4,713,429)
<TOTAL-ASSETS>                                   29,164,964
<CURRENT-LIABILITIES>                             5,700,104
<BONDS>                                                   0
<PREFERRED-MANDATORY>                                     0
<PREFERRED>                                               0
<COMMON>                                         41,104,828
<OTHER-SE>                                      (32,220,376)
<TOTAL-LIABILITY-AND-EQUITY>                     29,164,964
<SALES>                                          21,335,707
<TOTAL-REVENUES>                                 23,364,111
<CGS>                                            16,697,426
<TOTAL-COSTS>                                     5,965,255
<OTHER-EXPENSES>                                   (194,158)
<LOSS-PROVISION>                                    225,000
<INTEREST-EXPENSE>                                   64,683
<INCOME-PRETAX>                                  (1,406,986)
<INCOME-TAX>                                              0
<INCOME-CONTINUING>                              (1,406,986)
<DISCONTINUED>                                            0
<EXTRAORDINARY>                                           0
<CHANGES>                                                 0
<NET-INCOME>                                     (1,406,986)
<EPS-PRIMARY>                                         (0.19)
<EPS-DILUTED>                                         (0.19)