UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K
                                 CURRENT REPORT

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

Date of Report (Date of Earliest event reported): December 28, 1999

                      Restaurant Teams International, Inc.
             (Exact name of registrant as specified in its charter)


  State of Texas                      001-13559                  75-2337102
(State of incorporation)        (Commission File No.)          (IRS Employer
                                                             Identification No.)


                          911 N.W. Loop 281, Suite 111
                              Longview, Texas 75604
               (Address of principal executive offices) (Zip code)

                                    No change
             (Former name of address, if changed since last report).













Item 5.  Other events

     Restaurant Teams International,  Inc. issued the following press release on
December 28, 1999.

Restaurant Teams International, Inc. and Debenture Holders reach settlement

Longview, Texas - Restaurant Teams International,  Inc. ("RTIN") Announced today
that it has reached an agreement  with Thomson  Kernaghan,  Canadian  Advantage,
Sovereign  Partners,  Dominion  Capital,  Stephen Hicks, and Mark Valentine (the
"Debenture Parties"), to settle the litigation between the parties.  The company
is delighted to return to the business of operating a restaurant holding company
and pursuing acquisitions.

The  company  announced  that after  performing  due  diligence  and  conducting
extensive discovery,  management has determined that there was, and is, no basis
in fact for the statements made by RTIN and it's officers,  directors, and other
representatives  alleging  wrongdoing  by the  Debenture  Parties.  There was no
actionable  conduct or any wrongdoing by the Debenture Parties vis a vis RTIN or
its  shareholders.  In recognition and  acknowledgement  of this fact and RTIN's
undisputed  financial  obligation to Sovereign Partners,  Dominion Capital,  and
Canadian  Advantage,  the  holders  of  RTIN  debentures,  RTIN  has  reached  a
settlement  in  principal  with  the  Debenture  Parties.  If RTIN  honors  it's
obligations  under the settlement and debenture,  the settlement  will fully and
finally resolve the debenture  holders' claims  asserting that RTIN defaulted on
its  obligations  arising from RTIN debentures held by them and RTIN's claims of
wrongdoing by the Debenture Parties. The settlement stays other litigation filed
against RTIN, including, the defamation action, pending the repayment of all the
principle and interest due under the  debentures  and a portion of the penalties
accrued  thereunder.   RTIN's  Board  of  Directors  have  determined  that  the
settlement is mutually beneficial both to RTIN and its shareholders.

Curtis A. Swanson,  Chief Financial Officer of RTIN commented that,  "Restaurant
Teams deeply regrets any harm caused to the Debenture Parties as a result of our
allegations of wrongdoing."  Mr. Swanson added, "We are all relieved to put this
matter behind us so that we can move forward and implement our business plan."

A spokesman for the Debenture Parties, stated "We are pleased to put this matter
behind us and look  forward to working  with RTIN in the future so that they can
effectively move forward with their business plans."

This press release may contain forward-looking  statements,  which are generally
preceded by words such as "believes",  "expects",  "anticipates",  or "intends".
Such  statements  are  subject  to risks and  uncertainties,  including  but not
limited  to   competitive   conditions,   real  estate  zoning  and   permitting
complications,  government regulations, and general conditions in the restaurant
market.












                                   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 hereunto duly authorized.

                                            Restaurant Teams International, Inc.


Date: December 28, 1999                     By: /s/ Stanley L. Swanson
                                                    ------------------
                                                    Stanley L. Swanson
                                                    Chief Executive Officer
                                                    (Signature)





Date: December 28, 1999                     By: /s/ Curtis A. Swanson
                                                    -----------------
                                                    Curtis A. Swanson
                                                    Chief Financial Officer
                                                    (Signature)