UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number  811-06628

The Yacktman Funds, Inc.

(Exact name of registrant as specified in charter)

6300 Bridgeport Parkway

Building One, Suite 320

Austin, TX 78730

(Address of principal executive offices) (Zip code)

Donald A. Yacktman

c/o Yacktman Asset Management Co.

6300 Bridgeport Parkway

Building One, Suite 320

Austin, TX 78730

(Name and address of agent for service)

512-767-6700

Registrant's telephone number, including area code

Date of fiscal year end: December 31

Date of reporting period:  September 30, 2011

Item 1. Schedule of Investments.

Schedule of Investments
September 30, 2011 (Unaudited)
The Yacktman Fund
	Number of Shares	Value
COMMON STOCKS - 89.06%
Banks - 2.96%
The Bancorp, Inc. (a)	760,000	$	5,441,600
U.S. Bancorp	6,500,000		153,010,000
			158,451,600
Beverages - 15.31%
Coca-Cola Co.	3,250,000		219,570,000
PepsiCo, Inc.	9,670,000		598,573,000
			818,143,000
Capital Markets - 1.85%
Bank of New York Mellon Corp.	3,900,000		72,501,000
Janus Capital Group, Inc.	4,370,000		26,220,000
			98,721,000
Commercial Services & Supplies - 1.62%
H&R Block, Inc.	6,500,000		86,515,000
Communications Equipment - 0.67%
Research In Motion Ltd (a)	1,750,000		35,525,000
Computers & Peripherals - 2.16%
Hewlett-Packard Co.	5,150,000		115,617,500
Consumer Finance - 0.20%
American Express Co.	235,000		10,551,500
Diversified Consumer Services - 1.52%
Apollo Group, Inc. (a)	2,050,000		81,200,500
Diversified Financial Services - 0.06%
Resource America, Inc., Class A	659,226		2,973,109
Electronic Equipment, Instruments & Components - 1.20%
Corning, Inc.	5,200,000		64,272,000
Food & Staples Retailing - 3.50%
Sysco Corp.	7,220,000		186,998,000
Food Products - 0.52%
Lancaster Colony Corp.	460,000		28,064,600
Health Care Equipment & Supplies - 6.38%
Becton Dickinson & Co.	750,000		54,990,000
C.R. Bard, Inc.	1,500,000		131,310,000
Covidien Plc	850,000		37,485,000
Medtronic, Inc.	400,000		13,296,000
Stryker Corp.	2,200,000		103,686,000
			340,767,000
Health Care Providers & Services - 2.13%
Patterson Companies, Inc.	2,050,000		58,691,500
UnitedHealth Group, Inc.	1,200,000		55,344,000
			114,035,500
Household Products - 7.91%
Clorox Co.	1,400,000		92,862,000
Colgate-Palmolive Co.	670,000		59,415,600
Procter & Gamble Co.	4,280,000		270,410,400
			422,688,000
Internet Retail - 0.69%
eBay, Inc. (a)	1,250,000		36,862,500
IT Services - 5.15%
Cisco Systems, Inc.	15,800,000		244,742,000
Total System Services, Inc.	1,800,000		30,474,000
			275,216,000
Media - 15.81%
Comcast Corp.	4,700,000		97,243,000
Liberty Media Holding Corp., Interactive-Series A (a)	2,900,000		42,833,000
News Corp., Class A	36,800,000		569,296,000
Viacom, Inc., Class B	3,500,000		135,590,000
			844,962,000
Oil, Gas & Consumable Fuels - 4.11%
ConocoPhillips	2,150,000		136,138,000
Exxon Mobil Corp.	1,150,000		83,524,500
			219,662,500
Personal Products - 1.10%
Avon Products, Inc.	3,000,000		58,800,000
Pharmaceuticals - 6.75%
Johnson & Johnson	3,500,000		222,985,000
Pfizer, Inc.	7,800,000		137,904,000
			360,889,000
Semiconductor & Semiconductor Equipment - 0.92%
Intel Corp.	2,300,000		49,059,000
Software - 4.89%
Microsoft Corp.	10,500,000		261,345,000
Specialty Retail - 1.65%
Wal-Mart Stores, Inc.	1,700,000		88,230,000
TOTAL COMMON STOCKS (Cost $4,596,479,707)			4,759,549,309
	Principal
	Amount
SHORT TERM INVESTMENTS - 10.96%
Commercial Paper - 1.22%
American Express Co.
0.007%, 10/03/2011	35,127,000		35,126,981
Nestle SA
0.104%, 10/17/2011	30,000,000		29,998,533
			65,125,514
Demand Note - 0.01%
U.S. Bancorp
0.00	441,242		441,242
U.S. Treasury Bills - 9.73%
U.S. Treasury Bill
0.042%, 10/06/2011	12,105,000		12,104,916
0.057%, 10/20/2011	12,034,000		12,033,619
0.039%, 11/10/2011	43,696,000		43,694,058
0.059%, 11/17/2011	8,183,000		8,182,359
0.020%, 11/25/2011	48,165,000		48,163,505
0.012%, 12/15/2011	44,980,000		44,978,876
0.012%, 12/22/2011	171,094,000		171,089,209
0.029%, 02/02/2012	82,183,000		82,174,782
0.032%, 02/09/2012	29,248,000		29,244,607
0.027%, 02/23/2012	33,442,000		33,438,355
0.052%, 03/29/2012	35,127,000		35,117,867
			520,222,153
TOTAL SHORT TERM INVESTMENTS (Cost $585,785,039)			585,788,909
Total Investments (Cost $5,182,264,746) - 100.02%			5,345,338,218
Liabilities in Excess of Other Assets - (0.02)%			(1,159,401
TOTAL NET ASSETS - 100.00%		$	5,344,178,817
Percentages are stated as a percent of net assets.
(a) Non-Income Producing
The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor Financial Services LLC ("S&P"). GICS is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The cost basis of investments for federal income tax purposes at September 30, 2011 was as follows*:
Cost of investments	$	5,182,264,746
Gross unrealized appreciation		376,970,091
Gross unrealized depreciation		(213,896,619)
Net unrealized appreciation	$	163,073,472
*Because tax adjustments are calculated annually, the above table does not reflect tax adjustments. For the
previous fiscal year's federal income tax information, please refer to the Notes to Financial Statements section
in the Fund's most recent semi-annual or annual report.

Valuation Measurements

The Trust has adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs, if any, during the period.  In addition, these standards require expanded disclosure for each major category of assets.  These inputs are summarized in the three broad levels listed below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 - Significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.  The following is a summary of the inputs used to value the Fund's net assets as of September 30, 2011 :

THE YACKTMAN FUND
	Level 1		Level 2		Level 3		Total
Common Stock*	$	4,759,549,309	$	-	$	-	$	4,759,549,309
Short Term Investments*		-		585,788,909		-		585,788,909
Total Investments in Securities	$	4,759,549,309	$	585,788,909	$	-	$	5,345,338,218
*Please refer to the portfolio of investments to view securities by industry type.
The Funds did not invest in any Level 3 investments during the year. There were no significant transfers into or out of Level 1 or Level 2 during the year.
It is the Funds' policy to consider transfers into or out of Level 1 or Level 2 as of the end of the reporting period.

Schedule of Investments
September 30, 2011 (Unaudited)
The Yacktman Focused Fund
	Number of Shares	Value
COMMON STOCKS - 88.70%
Auto Manufacturers - 0.69%
Toyota Industries Corporation - ADR (a)	800,000		23,256,000
Banks - 2.88%
The Bancorp, Inc. (a)	336,000		2,405,760
U.S. Bancorp	4,000,000		94,160,000
			96,565,760
Beverages - 15.59%
Coca-Cola Co.	1,960,000		132,417,600
PepsiCo, Inc.	6,300,000		389,970,000
			522,387,600
Capital Markets - 1.00%
Bank of New York Mellon Corp.	1,800,000		33,462,000
Commercial Services & Supplies - 1.51%
H&R Block, Inc.	3,800,000		50,578,000
Communications Equipment - 0.64%
Research In Motion Ltd (a)	1,050,000		21,315,000
Computers & Peripherals - 2.14%
Hewlett-Packard Co.	3,200,000		71,840,000
Diversified Consumer Services - 1.42%
Apollo Group, Inc. (a)	1,200,000		47,532,000
Diversified Financial Services - 0.03%
Resource America, Inc., Class A	215,000		969,650
Electronic Equipment, Instruments & Components - 1.22%
Corning, Inc.	3,300,000		40,788,000
Food & Staples Retailing - 3.56%
Sysco Corp.	4,600,000		119,140,000
Food Products - 0.39%
Lancaster Colony Corp.	216,500		13,208,665
Health Care Equipment & Supplies - 5.95%
Becton Dickinson & Co.	460,000		33,727,200
C.R. Bard, Inc.	915,000		80,099,100
Covidien Plc	500,000		22,050,000
Stryker Corp.	1,350,000		63,625,500
			199,501,800
Health Care Providers & Services - 0.90%
Patterson Companies, Inc.	200,000		5,726,000
UnitedHealth Group, Inc.	530,000		24,443,600
			30,169,600
Household Products - 12.01%
Clorox Co.	800,000		53,064,000
Colgate-Palmolive Co.	200,000		17,736,000
Procter & Gamble Co.	5,250,000		331,695,000
			402,495,000
IT Services - 4.94%
Cisco Systems, Inc.	9,600,000		148,704,000
Total System Services, Inc.	1,000,000		16,930,000
			165,634,000
Media - 15.34%
Comcast Corp.	2,300,000		47,587,000
Liberty Media Corp., Interactive-Series A (a)	840,000		12,406,800
News Corp., Class A	24,610,757		380,728,411
Viacom, Inc., Class B	1,900,000		73,606,000
			514,328,211
Oil, Gas & Consumable Fuels - 3.19%
ConocoPhillips	1,060,000		67,119,200
Exxon Mobil Corp.	550,000		39,946,500
			107,065,700
Personal Products - 1.14%
Avon Products, Inc.	1,950,000		38,220,000
Pharmaceuticals - 5.81%
Johnson & Johnson	1,500,000		95,565,000
Pfizer, Inc.	5,600,000		99,008,000
			194,573,000
Software - 6.80%
Microsoft Corp.	9,150,000		227,743,500
Specialty Retail - 1.55%
Wal-Mart Stores, Inc.	1,000,000		51,900,000
TOTAL COMMON STOCKS (Cost $2,902,978,041)			2,972,673,486
	Principal Amount
CORPORATE BONDS - 0.23%
Media - 0.23%
Liberty Media Corp.
8.250%, 02/01/2030	8,000,000		7,620,000
TOTAL CORPORATE BONDS (Cost $7,374,207)			7,620,000
SHORT TERM INVESTMENTS - 10.97%
Commercial Paper - 0.96%
American Express Co.
0.007%, 10/03/2011	12,075,000		12,074,994
Nestle SA
0.104%, 10/17/2011	20,000,000		19,999,022
			32,074,016
Demand Note - 0.01%
U.S. Bancorp
0.00	309,030		309,030
U.S. Treasury Bills - 10.00%
U.S. Treasury Bill
0.065%, 10/13/2011	10,837,000		10,836,747
0.076%, 10/20/2011	15,293,000		15,292,354
0.036%, 11/10/2011	26,062,000		26,060,925
0.010%, 11/25/2011	22,914,000		22,913,650
0.009%, 12/01/2011	25,875,000		25,874,586
0.012%, 12/15/2011	6,696,000		6,695,833
0.014%, 12/29/2011	24,050,000		24,049,158
0.012%, 01/05/2012	44,508,000		44,506,531
0.017%, 01/19/2012	22,941,000		22,939,807
0.029%, 02/02/2012	41,396,000		41,391,860
0.032%, 02/09/2012	21,832,000		21,829,468
0.027%, 02/23/2012	22,024,000		22,021,599
0.047%, 03/22/2012	50,736,000		50,724,534
			335,137,052
TOTAL SHORT TERM INVESTMENTS (Cost $367,536,403)			367,520,098
Total Investments (Cost $3,277,888,651) - 99.90%			3,347,813,584
Other Assets in Excess of Liabilities - 0.10%			3,309,007
TOTAL NET ASSETS - 100.00%		$	3,351,122,591

The cost basis of investments for federal income tax purposes at September 30, 2011 was as follows*:
Cost of investments	$	3,277,888,651
Gross unrealized appreciation		184,727,695
Gross unrealized depreciation		(114,802,762)
Net unrealized appreciation	$	69,924,933
*Because tax adjustments are calculated annually, the above table does not reflect tax adjustments. For the
previous fiscal year’s federal income tax information, please refer to the Notes to Financial Statements section
in the Fund’s most recent semi-annual or annual report.

Valuation Measurements

The Trust has adopted authoritative fair valuation accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs, if any, during the period. In addition, these standards require expanded disclosure for each major category of assets. These inputs are summarized in the three broad levels listed below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 - Significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the Fund's net assets as of September 30, 2011 :

THE YACKTMAN FUND
	Level 1		Level 2		Level 3		Total
Common Stock*	$	2,949,417,486	$	23,256,000	$	-	$	2,972,673,486
Corporate Bonds*		-		7,620,000		-		7,620,000
Short Term Investments*		-		367,520,098		-		367,520,098
Total Investments in Securities	$	2,949,417,486	$	398,396,098	$	-	$	3,347,813,584
*Please refer to the portfolio of investments to view securities by industry type.
The Funds did not invest in any Level 3 investments during the year. There were no significant transfers into or out of Level 1 or Level 2 during the year.
It is the Funds' policy to consider transfers into or out of Level 1 or Level 2 as of the end of the reporting period.

Item 2. Controls and Procedures.

(a)   The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

(b)   There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)).  Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)  The Yacktman Funds, Inc.                                                                                                                                                                                         

By (Signature and Title) /s/Donald A. Yacktman                                                                                                                                                                                   

Donald A. Yacktman, President

Date 11/11/11                                                           

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*/s/Donald A. Yacktman                                                                                                                                                                                   

Donald A. Yacktman, President & Treasurer

Date 11/11/11                                                           

* Print the name and title of each signing officer under his or her signature.