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UNITED
    STATES
 SECURITIES
    AND EXCHANGE COMMISSION
 Washington, D.C.
    20549
 FORM
    10-Q
  (Mark
    one)
 x
    QUARTERLY
    REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934  For the quarterly
    period ended March 31, 2007.
  OR
  o
    TRANSITION
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934  For the
    transition period from
    
    to
     .
  Commission file
    no. 0-16190
  DEL
    TACO RESTAURANT PROPERTIES II
 a California
    limited partnership
 (Exact
    name of registrant as specified in its charter)
  California

33-0064245(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification Number)25521 Commercentre Drive, Lake
    Forest, California

92630(Address of principal executive
    offices)

(Zip Code)   (949) 462-9300
 (Registrants telephone
    number, including area code)
  Indicate by check
    mark whether the registrant (1) has filed all reports
    required to be filed by Section 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 þ  No o
  Indicate by check
    mark whether the registrant is a large accelerated filer, an
    accelerated filer, or a non-accelerated filer. See definition of
    accelerated filer and large accelerated filer in
    Rule 12b-2
    of the Exchange Act (check one):
 Large accelerated
    filer o     Accelerated
    filer o     Non-accelerated
    filer þ
  Indicate by check
    mark whether the registrant is a shell company (as defined in
    Rule 12b-2
    of the Exchange
    Act).  Yes o  No þ




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DEL TACO RESTAURANT PROPERTIES II
  
 PAGE NUMBERPART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Balance Sheets at March 31, 2007 (Unaudited) and
December 31, 2006
    
    
    3Condensed Statements of Income for the three months ended
March 31, 2007 and 2006 (Unaudited)
    
    
    4Condensed Statements of Cash Flows for the three months ended
March 31, 2007 and 2006 (Unaudited)
    
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    
    6Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    8Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    10Item 4. Controls and Procedures
    
    
    10PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    
    11SIGNATURE
    
    
    12EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
  -2-




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PART I. FINANCIAL INFORMATION
 
 ITEM I. FINANCIAL STATEMENTS
 DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED BALANCE SHEETS
 March 31,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    172,595
    
    
    $
    189,410Receivable from Del Taco LLC
    
    
    51,921
    
    
    
    49,049Deposits
    
    
    2,298
    
    
    
    1,686Total current assets
    
    
    226,814
    
    
    
    240,145PROPERTY AND EQUIPMENT:Land and improvements
    
    
    1,806,006
    
    
    
    1,806,006Buildings and improvements
    
    
    1,238,879
    
    
    
    1,238,879Machinery and equipment
    
    
    898,950
    
    
    
    898,9503,943,835
    
    
    
    3,943,835Lessaccumulated depreciation
    
    
    1,989,401
    
    
    
    1,977,8911,954,434
    
    
    
    1,965,944$
    2,181,248
    
    
    $
    2,206,089LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    43,750
    
    
    $
    42,160Accounts payable
    
    
    38,044
    
    
    
    15,112Total current liabilities
    
    
    81,794
    
    
    
    57,272PARTNERS EQUITY:Limited partners; 27,006 units outstanding at March 31, 2007
and December 31, 2006
    
    
    2,127,510
    
    
    
    2,176,379General partner-Del Taco LLC
    
    
    (28,056
    )
    
    
    (27,562
    )2,099,454
    
    
    
    2,148,817$
    2,181,248
    
    
    $
    2,206,089
  -3-




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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months EndedMarch 31,2007
    
    
    2006RENTAL REVENUES
    
    $
    143,796
    
    
    $
    160,250EXPENSES:General and administrative
    
    
    40,905
    
    
    
    41,559Depreciation
    
    
    11,510
    
    
    
    13,54552,415
    
    
    
    55,104Operating income
    
    
    91,381
    
    
    
    105,146OTHER INCOME:Interest
    
    
    757
    
    
    
    726Other
    
    
    750
    
    
    
    325Net income
    
    $
    92,888
    
    
    $
    106,197Net income per limited
partnership unit (Note 2)
    
    $
    3.41
    
    
    $
    3.89Number of units used in computing
per unit amounts
    
    
    27,006
    
    
    
    27,006
  -4-




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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Three Months EndedMarch 31,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    92,888
    
    
    $
    106,197Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    11,510
    
    
    
    13,545Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    (2,872
    )
    
    
    629Deposits
    
    
    (612
    )
    
    
    (534
    )Payable to limited partners
    
    
    1,590
    
    
    
    (1,247
    )Accounts payable
    
    
    22,932
    
    
    
    17,301Net cash provided by operating activities
    
    
    125,436
    
    
    
    135,891CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (142,251
    )
    
    
    (157,165
    )Net decrease in cash
    
    
    (16,815
    )
    
    
    (21,274
    )Beginning cash balance
    
    
    189,410
    
    
    
    198,980Ending cash balance
    
    $
    172,595
    
    
    $
    177,706
  -5-




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DEL TACO RESTAURANT PROPERTIES II
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE MONTHS ENDED MARCH 31, 2007
 UNAUDITED
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT
   NOTE 3  LEASING ACTIVITIES
  
 -6-




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DEL TACO RESTAURANT PROPERTIES II
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE MONTHS ENDED MARCH 31, 2007
 UNAUDITED
 NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  NOTE 6  PAYABLE TO LIMITED PARTNERS
  NOTE 7  CONCENTRATION OF RISK
  NOTE 8  ACQUISITION OF GENERAL PARTNER
  -7-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources
    Results of Operations
   Three Months EndedMarch 31,2007
    
    
    2006Bear Valley Rd., Victorville, CA
    
    $
    23,838
    
    
    $
    29,041West Valley Blvd., Colton, CA
    
    
    32,357
    
    
    
    34,810Palmdale Blvd., Palmdale, CA
    
    
    18,097
    
    
    
    19,087DeAnza Country Shopping Center,
Pedley, CA
    
    
    35,809
    
    
    
    33,638Varner Road, Thousand Palms, CA
    
    
    33,695
    
    
    
    43,674Total
    
    $
    143,796
    
    
    $
    160,250
  -8-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 
continued
  Percentage of TotalGeneral & Administrative ExpenseThree Months EndedMarch 31,2007
    
    
    2006Accounting fees
    
    
    78.34
    %
    
    
    73.42
    %Distribution of information
to limited partners
    
    
    21.66
    
    
    
    26.58100.00
    %
    
    
    100.00
    %
   Significant Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  Critical Accounting Policies and Estimates
  -9-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 
continued
 Property and Equipment:
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  
 Item 4. Controls and Procedures
       -10-




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PART II. OTHER INFORMATION
  
   31.1
    
    Shirlene Lopezs Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to Subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
   -11-




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SIGNATURE
  DEL TACO RESTAURANT PROPERTIES II
(a California limited partnership)
Registrant
Del Taco LLC
General PartnerDate:  May 14, 2007
    /s/ Steven L. BrakeSteven L. BrakeTreasurer -12-




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Exhibit No
    
    Description31.1
    
    Shirlene Lopezs Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to Subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
 -13-