| Delaware                       | 20-2932652           |
|--------------------------------|----------------------|
| (State or Jurisdiction of      | (IRS Employer ID No) |
| Incorporation or Organization) |                 |

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|                                               |                                                                                        |   | Page     |
|----------------------------------------------------|---------------------------------------------------------------------------------------------|--------|----------|
|                                               |                                                                                        |   | No.      |
|                                               |                                                                                        |   |     |
| Part I                                             | Financial Information (unaudited)                                                           |   |     |
|                                               |                                                                                        |   |     |
| Item 1:                                            | Condensed Consolidated Financial Statements                                                 |   |     |
|                                               |                                                                                        |   |     |
|                                               | Balance Sheets as of March 31, 2011 and December 31, 2010                                   |   | 3        |
|                                               | Statements of Operations – For the Three Months Ended March 31, 2011 and 2010         |   | 4        |
|                                               | Statements of Cash Flows – For the Three Months Ended March 31, 2011 and 2010         |   | 5        |
|                                               | Notes to Financial Statements                                                               |   | 7        |
|         Item 2:      | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 23       |
|         Item 3: | Quantitative and Qualitative Disclosure about Market Risk                                   |   | 26       |
|         Item 4: | Controls and Procedures                                                                     |   | 26       |
|                                               |                                                                                        |   |     |
| Part II                                            | Other Information                                                                           |   | 27       |
|                                               |                                                                                        |   |     |
| Item 1:                                            | Legal Proceedings                                                                           |   | 27  |
| Item 1A:                                      | Risk Factors                                                                                |   |     |
| Item 2:                                            | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 27       |
| Item 3:                                            | Defaults Upon Senior Securities                                                             |   | 27       |
| Item 4:                                            | Submission of Matters to a Vote of Security Holders                                         |   | 27       |
| Item 5:                                            | Other Information                                                                           |   | 27       |
| Item 6:                                            | Exhibits                                                                                    |   | 27       |

----

|                                                                                                                                                                                                                     |   | 2011   |       |   | 2010   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| ASSETS                                                                                                                                                                                                                   |   |   |       |   |   |   |
| Current assets:                                                                                                                                                                                                          |   |   |       |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                |   | $      | 170,506    |   |   | $      | 46,007 |   |
| Accounts receivable                                                                                                                                                                                                      |   |   | 20,925     |   |   |   | 4,258 |   |
| Due from related parties                                                                                                                                                                                                 |   |   | 101,752    |   |   |   | 84,269 |   |
| Prepaid expenses                                                                                                                                                                                                         |   |   | 68,395     |   |   |   | 24,184 |   |
| Total current assets                                                                                                                                                                                                     |   |   | 361,578    |   |   |   | 158,718 |   |
| Property and equipment, net                                                                                                                                                                                              |   |   | 23,013     |   |   |   | 25,563 |   |
| Available-for-sale investments at fair value                                                                                                                                                                             |   |   | 338,500    |   |   |   | 352,500 |   |
| Investments accounted for under the equity method                                                                                                                                                                        |   |   | 87,764     |   |   |   | 87,200 |   |
| Investments accounted for under the cost method                                                                                                                                                                          |   |   | 766,598    |   |   |   | 766,598 |   |
| Deposits                                                                                                                                                                                                                 |   |   | 23,980     |   |   |   | 23,980 |   |
| Total assets                                                                                                                                                                                                             |   | $      | 1,601,433  |   |   | $      | 1,414,559 |   |
|                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Current liabilities:                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Accounts payable                                                                                                                                                                                                         |   | $      | 225,854    |   |   | $      | 211,432 |   |
| Accrued expenses                                                                                                                                                                                                         |   |   | 9,588      |   |   |   | 66,103 |   |
| Notes payable                                                                                                                                                                                                            |   |   | 249,455    |   |   |   | 250,000 |   |
| Deferred revenue                                                                                                                                                                                                         |   |   | -          |   |   |   | 1,750 |   |
| Due to related parties                                                                                                                                                                                                   |   |   | 80,394     |   |   |   | 116,349 |   |
| Total current liabilities                                                                                                                                                                                                |   |   | 565,291    |   |   |   | 645,634 |   |
| Convertible notes payable                                                                                                                                                                                                |   |   | -          |   |   |   | 686,500 |   |
| Total liabilities                                                                                                                                                                                                        |   |   | 565,291    |   |   |   | 1,332,134 |   |
| Commitments and contingencies                                                                                                                                                                                            |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Stockholders' equity:                                                                                                                                                                                                    |   |   |       |   |   |   |   |   |
| Common stock, $0.0001 par value.  Authorized 200,000,000 shares; issued 2,984,204 and 2,571,918 shares and outstanding 2,460,974 and 2,048,688 shares at March 31, 2011 and at December 31, 2010, respectively |   |   | 298        |   |   |   | 257 |   |
| Additional paid in capital                                                                                                                                                                                               |   |   | 6,177,525  |   |   |   | 5,456,067 |   |
| Non-controlling interest                                                                                                                                                                                                 |   |   | 44,686     |   |   |   | 24,175 |   |
| Other comprehensive income                                                                                                                                                                                               |   |   | 54,027     |   |   |   | 68,027 |   |
| Accumulated deficit                                                                                                                                                                                                      |   |   | (4,703,711 | )      |   |   | (4,929,418 | ) |
| Less treasury stock, 523,230 and 523,230 shares, respectively                                                                                                                                                            |   |   | (536,683   | )      |   |   | (536,683 | ) |
| Total stockholders' equity                                                                                                                                                                                               |   |   | 1,036,142  |   |   |   | 82,425 |   |
| Total liabilities and stockholders' equity                                                                                                                                                                               |   | $      | 1,601,433  |   |   | $      | 1,414,559 |   |

----

|                                                          |   | 2011   |      |   | 2010   |   |
|---------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                          |   |   |      |   |   |   |
| Management and consulting revenue                             |   |   |      |   |   |   |
| Affiliate                                                     |   | $      | 24,646    |   |   | $      | 6,625 |   |
| Other                                                         |   |   | 416,667   |   |   |   | 21,708 |   |
|                                                          |   |   | 441,313   |   |   |   | 28,333 |   |
| Expenses:                                                     |   |   |      |   |   |   |   |   |
| General and administrative expense                            |   |   | 227,007   |   |   |   | 264,221 |   |
|                                                          |   |   | 227,007   |   |   |   | 264,221 |   |
| Earnings (loss) from operations before income taxes           |   |   | 214,306   |   |   |   | (235,888 | ) |
| Income taxes                                                  |   |   | -         |   |   |   | - |   |
| Earnings (loss) from operations                               |   |   | 214,306   |   |   |   | (235,888 | ) |
|                                                          |   |   |      |   |   |   |   |   |
| Other income (expense)                                        |   |   |      |   |   |   |   |   |
| Realized gain from sales of investments                       |   |   | 19,630    |   |   |   | 36,728 |   |
| Other than temporary decline in available-for-sale securities |   |   | -         |   |   |   | (40,386 | ) |
| Miscellaneous income                                          |   |   | 476       |   |   |   | - |   |
| Equity in earnings of investments                             |   |   | 5,103     |   |   |   | 11,797 |   |
| Interest and other income                                     |   |   | 4,541     |   |   |   | 11,500 |   |
| Interest expense                                              |   |   | (18,759   | )      |   |   | (49,550 | ) |
| Total other income (expense)                                  |   |   | 10,991    |   |   |   | (29,911 | ) |
| Net earnings (loss) before non-controlling interest           |   |   | 225,297   |   |   |   | (265,799 | ) |
| Non-controlling interest                                      |   |   | 410       |   |   |   | (365 | ) |
| Net earnings (loss)                                           |   |   | 225,707   |   |   |   | (266,164 | ) |
| Other comprehensive income:                                   |   |   |      |   |   |   |   |   |
| Unrealized gain (loss) on available-for-sale securities       |   |   | (14,000   | )      |   |   | (37,507 | ) |
| Net comprehensive income (loss)                               |   | $      | 211,707   |   |   | $      | (303,671 | ) |
|                                                          |   |   |      |   |   |   |   |   |
| Net earnings (loss) per share, basic and diluted              |   | $      | 0.11      |   |   | $      | (0.13 | ) |
| Weighted average shares outstanding                           |   |   | 2,053,269 |   |   |   | 1,969,822 |   |

----

|                                                                                   |   | 2011   |     |   | 2010   |        |
|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------|
| Cash flows from operating activities                                                   |   |   |     |   |   |        |
| Net earnings (loss)                                                                    |   | $      | 225,707  |   |   | $           | (266,164 | ) |
| Adjustments to reconcile net earnings (loss) to net cash used in operating activities: |   |   |     |   |   |        |   |   |
| Other than temporary decline in available-for-sale securities                          |   |   | -        |   |   |        | 40,386 |   |
| Depreciation                                                                           |   |   | 2,549    |   |   |        | 2,734 |   |
| Equity in (earnings) loss of investments                                               |   |   | (5,103   | )      |   |        | (11,797 | ) |
| Beneficial conversion feature of convertible notes payable                             |   |   | -        |   |   |        | 35,248 |   |
| Investment received in exchange for management services                                |   |   | -        |   |   |        | (10,500 | ) |
| Realized (gains) losses from sales of investments                                      |   |   | (19,630  | )      |   |        | (36,728 | ) |
| Non-controlling interest                                                               |   |   | (410     | )      |   |        | 365 |   |
| Change in other assets and liabilities:                                                |   |   |     |   |   |        |   |   |
| (Increase) decrease in accounts receivable                                             |   |   | (16,667  | )      |   |        | (14,184 | ) |
| (Increase) decrease in prepaid expenses and other assets                               |   |   | (27,485  | )      |   |        | - |   |
| Increase (decrease) in accounts payable and accrued expenses                           |   |   | (165,142 | )      |   |        | 25,248 |   |
| Advances from related parties                                                          |   |   | (28,438  | )      |   |        | 501 |   |
| Increase (decrease) in deferred revenue                                                |   |   | (1,750   | )      |   |        | (11,208 | ) |
| Net cash used in operating activities                                                  |   |   | (36,369  | )      |   |        | (246,099 | ) |
| Cash flows from investing activities                                                   |   |   |     |   |   |        |   |   |
| Purchase of fixed assets                                                               |   |   | -        |   |   |        | (3,628 | ) |
| Purchase of investments                                                                |   |   | (27,423  | )      |   |        | (13,861 | ) |
| Distributions from equity investments                                                  |   |   | 4,539    |   |   |        | - |   |
| Proceeds from sale of investments                                                      |   |   | 184,297  |   |   |        | 105,058 |   |
| Net cash provided by operating activities                                              |   |   | 161,413  |   |   |        | 87,569 |   |
| Cash flows from financing activities                                                   |   |   |     |   |   |        |   |   |
| Loan repayment                                                                         |   |   | (545     | )      |   |        | - |   |
| Loan proceeds                                                                          |   |   | -        |   |   |        | 275,000 |   |
| Net cash provided (used) by financing activities                                       |   |   | (545     | )      |   |        | 275,000 |   |
| Net increase in cash and cash equivalents                                              |   |   | 124,499  |   |   |        | 116,470 |   |
| Cash and cash equivalents, beginning of period                                         |   |   | 46,007   |   |   |        | 2,374 |   |
| Cash and cash equivalents, end of period                                               |   | $      | 170,506  |   |   | $           | 118,844 |   |
|                                                                                   |   |   |     |   |   | (Continued) |   |

----

|                                                        |   | 2011   |    |   | 2010   |   |
|-------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                        |   |   |    |   |   |   |
| Supplemental cash flow information                          |   |   |    |   |   |   |
| Cash paid for interest and income taxes:                    |   |   |    |   |   |   |
| Interest                                                    |   | $      | 65,131  |   |   | $      | 15,503 |   |
| Income taxes                                                |   |   | -       |   |   |   | - |   |
|                                                        |   |   |    |   |   |   |   |   |
| Non-cash investing and financing activities:                |   |   |    |   |   |   |   |   |
| Investments received for management consulting contracts    |   |   | -       |   |   |   | 10,500 |   |
| Due to related party exchanged for convertible note payable |   |   | 25,000  |   |   |   | - |   |
| Convertible notes payable exchanged for common stock        |   |   | 711,500 |   |   |   | - |   |
| Accrued interest exchanged for common stock                 |   |   | 10,000  |   |   |   | - |   |

----

| NOTE 1: | NATURE OF BUSINESS |
|---------|--------------------|

|   | (1)  | Organization – The consolidated financial statements include the accounts of Chanticleer Holdings, Inc. (“Holdings”) and its wholly owned subsidiaries Chanticleer Advisors LLC (“Advisors”), Avenel Ventures LLC ("Ventures"), Avenel Financial Services LLC ("Financial"), Chanticleer Holdings Limited ("CHL") and DineOut S.A. Ltd. ("DineOut") (own 89.74% at March 31, 2011) (collectively the “Company”, "Companies," “we”, or “us”).  All significant intercompany balances and transactions have been eliminated in consolidation.  Holdings was organized October 21, 1999, under the laws of the State of Delaware.  On April 25, 2005, the Company formed a wholly owned subsidiary, Chanticleer Holdings, Inc.  On May 2, 2005, Tulvine Systems, Inc. merged with and changed its name to Chanticleer Holdings, Inc. |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Advisors was formed as a Nevada Limited Liability Company on January 18, 2007 to manage related companies, Chanticleer Investors, LLC ("Investors LLC"), Chanticleer Investors II, LLC ("Investors II") and other investments owned by the Company; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ventures was formed as a Nevada Limited Liability Company on December 24, 2008 to provide business management and consulting services to its clients; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | AFS was formed as a Nevada Limited Liability Company on February 19, 2009 to provide unique financial services to the restaurant, real estate development, investment advisor/asset management and philanthropic organizations.  AFS's business operation has not been activated and is expected to initially include captive insurance, CHIRA and trust services; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CHL is wholly owned and was formed as a Limited Liability Company in Jersey on March 24, 2009 and owns our 50% interest in Hooters SA, GP, the general partner of the Hooters restaurant franchises in South Africa; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | DineOut was formed as a Private Limited Liability Company in England and Wales on October 29, 2009 to finance growth activity for the Company around the world.  DineOut's common stock is listed on the Frankfurt stock exchange.  As of March 31, 2011, the Company has sold 10.26% of its interest in DineOut. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | General - The consolidated financial statements included in this report have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and include all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation.  These consolidated financial statements have not been audited. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3) | Going Concern - At March 31, 2011 and December 31, 2010, the Company had current assets of $361,578 and $158,718; current liabilities of $565,291 and $645,634; and a working capital deficit of $203,713 and $486,916, respectively.  The Company had earnings of $225,707 during the three months ended March 31, 2011 and had an unrealized loss from available-for-sale securities of $14,000 resulting in comprehensive earnings of $211,707. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Company holds 3,589,661 shares in DineOut at March 31, 2011, which are free-trading on the Frankfurt Exchange and were valued at $0.937 per share at March 31, 2011.  The Company plans to continue to sell some of these shares to meet its short-term capital requirements and collected cash proceeds of $184,297 and recognized a gain of $19,630 from sales during the three months ended March 31, 2011; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Company currently is receiving its share of earnings from the Durban and Johannesburg, South Africa restaurants which commenced operations in 2010 and will begin receiving its share of earnings from the Cape Town, South Africa location which is scheduled to open in the spring of 2011; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Company is funding the initial formation of Chanticleer Dividend Fund, Inc. ("CDF"), including the registration of its common stock.  The Company expects to get most of its capital outlay back after the registration statement becomes effective and CDF begins raising funds. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (4) | Reclassifications - Certain reclassifications have been made in the financial statements at December 31, 2010 and for the periods ended March 31, 2010 to conform to the March 31, 2011 presentation.  The reclassifications had no effect on net earnings (loss). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Fair value measurements - For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date.  In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level 1 | Quoted prices for identical instruments in active markets.                                                                                                                                                                                              |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. |
| Level 3 | Significant inputs to the valuation model are unobservable.                                                                                                                                                                                             |

|   | (6) | New accounting pronouncements - There are several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) which are not yet effective.  Each of these pronouncements, as applicable, has been or will be adopted by the Company.  At April 30, 2011, none of these pronouncements is expected to have a material effect on the financial position, results of operations or cash flows of the Company when adopted. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE 2: | INVESTMENTS |
|---------|-------------|

|                                     |   | 2011   |   |   | 2010   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|
| Trading securities:                      |   |   |   |   |   |   |
| Balance, beginning of period             |   | $      | -      |   |   | $      | - |   |
| Shares acquired from a related party     |   |   | -      |   |   |   | 26,334 |   |
| Cost of securities sold                  |   |   | -      |   |   |   | (26,334 | ) |
| Balance, end of period                   |   | $      | -      |   |   | $      | - |   |
|                                     |   |   |   |   |   |   |   |   |
| Proceeds from sale of trading securities |   | $      | -      |   |   | $      | 32,917 |   |
| Gain from sale of trading securities     |   | $      | -      |   |   | $      | 6,583 |   |

|                                       |   | 2011   |    |   | 2010   |   |
|--------------------------------------------|--------|--------|---------|--------|--------|--------|
| Available for sale securities:             |   |   |    |   |   |   |
| Cost at beginning of period                |   | $      | 200,473 |   |   | $      | 83,286 |   |
| Transfer from investments accounted for by |   |   |    |   |   |   |   |   |
| the cost method                            |   |   | -       |   |   |   | 100,000 |   |
| Received as management fees                |   |   | -       |   |   |   | 33,000 |   |
| Acquired in exchange for DineOut shares    |   |   | -       |   |   |   | 124,573 |   |
| Proceeds from sale of securities           |   |   | -       |   |   |   | (41,645 | ) |
| Realized loss                              |   |   | -       |   |   |   | (98,741 | ) |
| Cost at end of year                        |   |   | 200,473 |   |   |   | 200,473 |   |
| Unrealized gain (loss)                     |   |   | 138,027 |   |   |   | 152,027 |   |
| Total                                      |   | $      | 338,500 |   |   | $      | 352,500 |   |

|                                 |   | 2011   |   |   | 2010   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|
| Investments using the equity method: |   |   |   |   |   |   |
| Balance, beginning of year           |   | $      | 87,200 |   |   | $      | 82,500 |   |
| Equity in earnings (loss)            |   |   | 5,103  |   |   |   | 58,337 |   |
| Sale of investment                   |   |   | -      |   |   |   | (37,500 | ) |
| Distributions received               |   |   | (4,539 | )      |   |   | (16,137 | ) |
| Balance, end of year                 |   | $      | 87,764 |   |   | $      | 87,200 |   |

----

|                                                    |   | 2011   |    |   | 2010   |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Investments at cost:                                    |   |   |    |   |   |   |
| Balance, beginning of year                              |   | $      | 766,598 |   |   | $      | 1,191,598 |   |
| Impairment                                              |   |   | -       |   |   |   | (250,000 | ) |
| Proceeds from sale of investment                        |   |   | -       |   |   |   | (75,000 | ) |
| Investment transferred to available-for-sale Securities |   |   | -       |   |   |   | (100,000 | ) |
| Total                                                   |   | $      | 766,598 |   |   | $      | 766,598 |   |

|                                   |   |   |    |   | Realized |   |    | Unrecognized        |   |   |    |   |
|----------------------------------------|--------|--------|---------|--------|----------|--------|---------|---------------------|--------|--------|---------|--------|
|                                   |   |   |    |   | Holding  |   |    | Holding             |   |   | Fair    |   |
|                                   |   | Cost   |    |   | Loss     |   |    | Gains (Losses) |   |   | Value   |   |
| March 31, 2011                         |   |   |    |   |     |   |    |                |   |   |    |   |
| Remodel Auction *                      |   | $      | 100     |   |     | $      | -       |                |   | $      | (100    | )      |   | $ | - |   |
| North American Energy                  |   |   | 126,000 |   |     |   | -       |                |   |   | (84,000 | )      |   |   | 42,000 |   |
| North American Energy *                |   |   | 10,500  |   |     |   | -       |                |   |   | (1,500  | )      |   |   | 9,000 |   |
| Efftec International, Inc. *           |   |   | 22,500  |   |     |   | -       |                |   |   | 7,500   |   |   |   | 30,000 |   |
| Efftec International, Inc. (warrant) * |   |   | -       |   |     |   | -       |                |   |   | 7,500   |   |   |   | 7,500 |   |
| HiTech Stages                          |   |   | 124,573 |   |     |   | -       |                |   |   | 125,427 |   |   |   | 250,000 |   |
|                                   |   | $      | 283,673 |   |     | $      | -       |                |   | $      | 54,827  |   |   | $ | 338,500 |   |
|                                   |   |   |    |   |     |   |    |                |   |   |    |   |   |   |   |   |
| December 31, 2010                      |   |   |    |   |     |   |    |                |   |   |    |   |   |   |   |   |
| Syzygy Entertainment, Ltd. *           |   | $      | 1,286   |   |     | $      | (1,286  | )                   |   | $      | -       |   |   | $ | - |   |
| Remodel Auction *                      |   |   | 40,000  |   |     |   | (39,100 | )                   |   |   | 100     |   |   |   | 1,000 |   |
| North American Energy                  |   |   | 126,000 |   |     |   | -       |                |   |   | (98,000 | )      |   |   | 28,000 |   |
| North American Energy *                |   |   | 10,500  |   |     |   | -       |                |   |   | (4,500  | )      |   |   | 6,000 |   |
| Efftec International, Inc. *           |   |   | 22,500  |   |     |   | -       |                |   |   | 22,500  |   |   |   | 45,000 |   |
| Efftec International, Inc. (warrant) * |   |   | -       |   |     |   | -       |                |   |   | 22,500  |   |   |   | 22,500 |   |
| HiTech Stages                          |   |   | 124,573 |   |     |   | -       |                |   |   | 125,427 |   |   |   | 250,000 |   |
|                                   |   | $      | 324,859 |   |     | $      | (40,386 | )                   |   | $      | 68,027  |   |   | $ | 352,500 |   |

----

----

|   | · | Collects, stores and analyzes chiller operating data, |
|--------|--------|-------------------------------------------------------|

|   | · | Calculates and trends chiller performance, |
|--------|--------|--------------------------------------------|

|   | · | Diagnoses the cause of chiller inefficiencies, |
|--------|--------|------------------------------------------------|

|   | · | Notifies plant contacts when problems occur, |
|--------|--------|----------------------------------------------|

|   | · | Recommends corrective actions, |
|--------|--------|--------------------------------|

|   | · | Measures the results of corrective actions and |
|--------|--------|------------------------------------------------|

|   | · | Provides cost analysis of operational improvements. |
|--------|--------|-----------------------------------------------------|

----

|                                         |   | 2011   |   |   | 2010   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Carrying value:                              |   |   |   |   |   |   |
| Chanticleer & Shaw Foods Pty. Ltd. (50%) |   | $      | 87,764 |   |   | $      | 87,200 |   |
|                                         |   | $      | 87,764 |   |   | $      | 87,200 |   |

|                       |   | 2011   |   |   | 2010   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|
| Equity in earnings (loss): |   |   |   |   |   |   |
| Hoot S.A. I, LLC (20%)     |   |   | 2,366  |   |   |   | 11,797 |   |
| Hoot S.A. II, LLC (20%)    |   |   | 2,737  |   |   |   | - |   |
|                       |   | $      | 5,103  |   |   | $      | 11,797 |   |
| Distributions:             |   |   |   |   |   |   |   |   |
| Hoot S.A. I, LLC (20%)     |   |   | 2,646  |   |   |   | - |   |
| Hoot S.A. II, LLC (20%)    |   |   | 1,893  |   |   |   | - |   |
|                       |   | $      | 4,539  |   |   | $      | - |   |

|                              |   | 2011   |    |   | 2010   |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|
|                              |   |   |    |   |   |   |
| Revenues                          |   | $      | 957,735 |   |   | $      | 626,531 |   |
| Gross profit                      |   |   | 640,751 |   |   |   | 431,014 |   |
| Income from continuing operations |   |   | 51,029  |   |   |   | 92,424 |   |
| Net income                        |   |   | 51,029  |   |   |   | 92,424 |   |

----

|                                               |   | 2011   |    |   | 2010   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                               |   |   |    |   |   |   |
| Chanticleer Investors, LLC                         |   | $      | 500,000 |   |   | $      | 500,000 |   |
| Edison Nation LLC (FKA Bouncing Brain Productions) |   |   | 250,000 |   |   |   | 250,000 |   |
| Chanticleer Investors II                           |   |   | 16,598  |   |   |   | 16,598 |   |
|                                               |   | $      | 766,598 |   |   | $      | 766,598 |   |

----

| NOTE 3: | CONVERTIBLE NOTES PAYABLE |
|---------|---------------------------|

| NOTE 4: | NOTES PAYABLE |
|---------|---------------|

----

| NOTE 5: | RELATED PARTY TRANSACTIONS |
|---------|----------------------------|

|                            |   | 2011   |    |   | 2010   |   |
|---------------------------------|--------|--------|---------|--------|--------|--------|
|                            |   |   |    |   |   |   |
| Chanticleer Investors, LLC      |   | $      | -       |   |   | $      | 6,035 |   |
| Chanticleer Investors II, LLC   |   |   | 22,896  |   |   |   | 46,547 |   |
| Chanticleer Dividend Fund, Inc. |   |   | 74,281  |   |   |   | 30,937 |   |
| Hoot SA 1 LLC                   |   |   | 3,000   |   |   |   | - |   |
| Hoot SA II LLC                  |   |   | 825     |   |   |   |   |   |
| Other                           |   |   | 750     |   |   |   | 750 |   |
|                            |   | $      | 101,752 |   |   | $      | 84,269 |   |

|                                                  |   | 2011   |   |   | 2010   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                  |   |   |   |   |   |   |
| Avenel Financial Group, a company owned by Mr. Pruitt |   |   | 21,349 |   |   |   | 46,349 |   |
| Chanticleer Investors, LLC                            |   |   | 4,045  |   |   |   | - |   |
| Hoot SA III, LLC                                      |   |   | 55,000 |   |   |   | 70,000 |   |
|                                                  |   | $      | 80,394 |   |   | $      | 116,349 |   |

----

|                                  |   | 2011   |   |   | 2010   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
|                                  |   |   |   |   |   |   |
| Chanticleer Investors, LLC            |   | $      | -      |   |   | $      | 6,625 |   |
| Chanticleer Investors II, LLC         |   |   | 22,896 |   |   |   | - |   |
| North American Energy Resources, Inc. |   |   | 1,750  |   |   |   | - |   |
|                                  |   | $      | 24,646 |   |   | $      | 6,625 |   |

| NOTE 6: | COMMITMENTS AND CONTINGENCIES |
|---------|-------------------------------|

----

| NOTE 7: | DEFERRED REVENUE |
|---------|------------------|

|                               |   | 2011   |   |   | 2010   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|
|                               |   |   |   |   |   |   |
| Balance at beginning of year       |   | $      | 1,750  |   |   | $      | 20,833 |   |
| Additions:                         |   |   |   |   |   |   |   |   |
| North American Energy common stock |   |   | -      |   |   |   | 10,500 |   |
| Amortization                       |   |   | (1,750 | )      |   |   | (29,583 | ) |
| Balance end of year                |   | $      | -      |   |   | $      | 1,750 |   |

| NOTE 8: | STOCKHOLDERS' EQUITY |
|---------|----------------------|

----

| NOTE 9: | SEGMENTS OF BUSINESS |
|---------|----------------------|

----

|                                |   | Management |    |   | Insurance |   |   | Restaurants |   |   | Total  |   |
|-------------------------------------|--------|------------|---------|--------|-----------|--------|--------|-------------|--------|--------|--------|--------|
|                                |   |       |    |   |      |   |   |        |   |   |   |   |
| Revenues                            |   | $          | 441,313 |   |      | $      | -      |        |   | $      | -      |   |   | $ | 441,313 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Interest expense                    |   | $          | 18,759  |   |      | $      | -      |        |   | $      | -      |   |   | $ | 18,759 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Depreciation and amortization       |   | $          | 2,549   |   |      | $      | -      |        |   | $      | -      |   |   | $ | 2,549 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Profit (loss)                       |   | $          | 195,547 |   |      | $      | -      |        |   | $      | 5,103  |   |   | $ | 200,650 |   |
| Investments and other               |   |       |    |   |      |   |   |        |   |   |   |   |   |   | 24,647 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   |   | 225,297 |   |
| Non-controlling interest            |   |       |    |   |      |   |   |        |   |   |   |   |   |   | 410 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   | $ | 225,707 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Assets                              |   | $          | 408,571 |   |      | $      | -      |        |   | $      | 87,764 |   |   | $ | 496,335 |   |
| Investments                         |   |       |    |   |      |   |   |        |   |   |   |   |   |   | 1,105,098 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   | $ | 1,601,433 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Liabilities                         |   | $          | 565,291 |   |      | $      | -      |        |   | $      | -      |   |   | $ | 565,291 |   |
|                                |   |       |    |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Expenditures for non-current assets |   | $          | -       |   |      | $      | -      |        |   | $      | -      |   |   | $ | - |   |

|                                |   | Management |     |   | Insurance |   |   | Restaurants |   |   | Total  |   |
|-------------------------------------|--------|------------|----------|--------|-----------|--------|--------|-------------|--------|--------|--------|--------|
|                                |   |       |     |   |      |   |   |        |   |   |   |   |
| Revenues                            |   | $          | 28,333   |   |      | $      | -      |        |   | $      | -      |   |   | $ | 28,333 |   |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Interest expense                    |   | $          | 49,550   |   |      | $      | -      |        |   | $      | -      |   |   | $ | 49,550 |   |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Depreciation and amortization       |   | $          | 2,734    |   |      | $      | -      |        |   | $      | -      |   |   | $ | 2,734 |   |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Profit (loss)                       |   | $          | (285,073 | )      |      | $      | -      |        |   | $      | 11,432 |   |   | $ | (273,641 | ) |
| Investments and other               |   |       |     |   |      |   |   |        |   |   |   |   |   |   | 7,842 |   |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   |   | (265,799 | ) |
| Non-controlling interest            |   |       |     |   |      |   |   |        |   |   |   |   |   |   | (365 | ) |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   | $ | (266,164 | ) |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Assets                              |   | $          | 217,786  |   |      | $      | -      |        |   | $      | 56,797 |   |   | $ | 274,583 |   |
| Investments                         |   |       |     |   |      |   |   |        |   |   |   |   |   |   | 1,207,491 |   |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   | $ | 1,482,074 |   |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Liabilities                         |   | $          | 996,192  |   |      | $      | -      |        |   | $      | 29,000 |   |   | $ | 1,025,192 |   |
|                                |   |       |     |   |      |   |   |        |   |   |   |   |   |   |   |   |
| Expenditures for non-current assets |   | $          | 3,628    |   |      | $      | -      |        |   | $      | -      |   |   | $ | 3,628 |   |

----

| NOTE 10: | DISCLOSURES ABOUT FAIR VALUE |
|----------|------------------------------|

|                          |   | Fair Value Measurement Using |    |
|-------------------------------|--------|---------------------------------------------|---------|
|                          |   |                                        |    |   | Quoted prices |   |   |   |   |   |   |   |
|                          |   |                                        |    |   | in active |   |   | Significant |   |   |   |   |
|                          |   |                                        |    |   | markets of |   |   | other |   |   | Significant |   |
|                          |   |                                        |    |   | identical |   |   | observable |   |   | Unobservable |   |
|                          |   | Recorded                                    |    |   | assets |   |   | inputs |   |   | Inputs |   |
|                          |   | value                                       |    |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                          |   |                                        |    |   |   |   |   |   |   |   |   |   |
| March 31, 2011                |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Assets:                       |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities |   | $                                           | 338,500 |   |   | $ | 88,500 |   |   | $ | 250,000 |   |   | $ | - |   |
|                          |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010             |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                       |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities |   | $                                           | 352,500 |   |   | $ | 101,500 |   |   | $ | 251,000 |   |   | $ | - |   |

----

| ITEM 2: | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------|

----

|   | · | The Company holds 3,589,661 shares in DineOut at March 31, 2011, which are free-trading on the Frankfurt Exchange and were valued at $0.937 per share at March 31, 2011.  The Company plans to continue to sell some of these shares to meet its short-term capital requirements and collected cash proceeds of $184,297 and recognized a gain of $19,630 from sales during the three months ended March 31, 2011; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Company currently is receiving its share of earnings from the Durban and Johannesburg, South Africa restaurants which commenced operations in 2010 and will begin receiving its share of earnings from the Cape Town, South Africa location which is scheduled to open in the spring of 2011; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The Company is funding the initial formation of Chanticleer Dividend Fund, Inc. ("CDF"), including the registration of its common stock.  The Company expects to get most of its capital outlay back after the registration statement becomes effective and CDF begins raising funds. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   | 2011   |    |   | 2010   |   |
|----------------------------------|--------|--------|---------|--------|--------|--------|
|                             |   |   |    |   |   |   |
| HOA LLC acquisition              |   | $      | 400,000 |   |   | $      | - |   |
| Investors LLC                    |   |   | -       |   |   |   | 6,625 |   |
| Total cash                       |   |   | 400,000 |   |   |   | 6,625 |   |
| HOA LLC consulting accrual       |   |   | 16,667  |   |   |   | - |   |
| Investors II accrual             |   |   | 22,896  |   |   |   | - |   |
| Amortization of deferred revenue |   |   | 1,750   |   |   |   | 21,708 |   |
|                             |   | $      | 441,313 |   |   | $      | 28,333 |   |

----

|                           |   | 2011   |    |   | 2010   |   |
|--------------------------------|--------|--------|---------|--------|--------|--------|
|                           |   |   |    |   |   |   |
| Professional services and fees |   | $      | 39,844  |   |   | $      | 37,261 |   |
| Payroll                        |   |   | 108,627 |   |   |   | 166,763 |   |
| Travel and entertainment       |   |   | 13,186  |   |   |   | 12,744 |   |
| Other                          |   |   | 65,350  |   |   |   | 47,453 |   |
|                           |   | $      | 227,007 |   |   | $      | 264,221 |   |

|                                                          |   | 2011   |    |   | 2010   |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                          |   |   |    |   |   |   |
| Realized gain from sale of investments                        |   | $      | 19,630  |   |   | $      | 36,728 |   |
| Other than temporary decline in available-for-sale securities |   |   | -       |   |   |   | (40,386 | ) |
| Equity in earnings of investments                             |   |   | 5,103   |   |   |   | 11,797 |   |
| Interest and other income                                     |   |   | 5,017   |   |   |   | 11,500 |   |
| Interest expense                                              |   |   | (18,759 | )      |   |   | (49,550 | ) |
|                                                          |   | $      | 10,991  |   |   | $      | (29,911 | ) |

----

| ITEM 3: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| ITEM 4: | CONTROLS AND PROCEDURES |
|---------|-------------------------|

----

| ITEM 1: | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 1A: | RISK FACTORS |
|----------|--------------|

| ITEM 2: | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

| ITEM 3: | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4: | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
|---------|-----------------------------------------------------|

| ITEM 5: | OTHER INFORMATION |
|---------|-------------------|

| ITEM 6: | EXHIBITS |
|---------|----------|

| Exhibit 31 | Certification pursuant to 18 U.S.C. Section 1350Section 302 of the Sarbanes-Oxley Act of 2002 |
|------------|-----------------------------------------------------------------------------------------------|
|       |                                                                                          |
| Exhibit 32 | Certification pursuant to 18 U.S.C. Section 1350Section 906 of the Sarbanes-Oxley Act of 2002 |

----

|                                |   | CHANTICLEER HOLDINGS, INC.  |
|-------------------------------------|--------|-----------------------------|
|                                |   |                        |
| Date:   May 11, 2011 | By:    | /s/ Michael D. Pruitt       |
|                                |   | Michael D. Pruitt,          |
|                                |   | Chief Executive Officer and |
|                                |   | Chief Financial Officer     |

----