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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, 2006.


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, 2006 (Unaudited) and
December 31, 2005
    
    
    3Condensed Statements of Income for the three months ended
March 31, 2006 and 2005 (Unaudited)
    
    
    4Condensed Statements of Cash Flows for the three months ended
March 31, 2006 and 2005 (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 31,2006
    
    
    2005(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    177,706
    
    
    $
    198,980Receivable from Del Taco LLC
    
    
    56,074
    
    
    
    56,703Deposits
    
    
    1,534
    
    
    
    1,000Total current assets
    
    
    235,314
    
    
    
    256,683PROPERTY 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
    
    
    1,937,256
    
    
    
    1,923,7112,006,579
    
    
    
    2,020,124$
    2,241,893
    
    
    $
    2,276,807LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    35,568
    
    
    $
    36,815Accounts payable
    
    
    27,812
    
    
    
    10,511Total current liabilities
    
    
    63,380
    
    
    
    47,326PARTNERS EQUITY:Limited partners; 27,006 units outstanding at March 31, 2006
and December 31, 2005
    
    
    2,205,778
    
    
    
    2,256,236General partner-Del Taco LLC
    
    
    (27,265
    )
    
    
    (26,755
    )2,178,513
    
    
    
    2,229,481$
    2,241,893
    
    
    $
    2,276,807
  -3-




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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months EndedMarch 31,2006
    
    
    2005RENTAL REVENUES
    
    $
    160,250
    
    
    $
    167,343EXPENSES:General and administrative
    
    
    41,559
    
    
    
    38,740Depreciation
    
    
    13,545
    
    
    
    13,54555,104
    
    
    
    52,285Operating income
    
    
    105,146
    
    
    
    115,058OTHER INCOME:Interest
    
    
    726
    
    
    
    608Other
    
    
    325
    
    
    
    700Net income
    
    $
    106,197
    
    
    $
    116,366Net income per limited
partnership unit (Note 2)
    
    $
    3.89
    
    
    $
    4.27Number 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 31,2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    106,197
    
    
    $
    116,366Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    13,545
    
    
    
    13,545Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    629
    
    
    
    (5,527
    )Deposits
    
    
    (534
    )
    
    
    220Payable to limited partners
    
    
    (1,247
    )
    
    
    (931
    )Accounts payable
    
    
    17,301
    
    
    
    26,376Net cash provided by operating activities
    
    
    135,891
    
    
    
    150,049CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (157,165
    )
    
    
    (155,578
    )Net decrease in cash
    
    
    (21,274
    )
    
    
    (5,529
    )Beginning cash balance
    
    
    198,980
    
    
    
    197,784Ending cash balance
    
    $
    177,706
    
    
    $
    192,255
  -5-




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DEL TACO RESTAURANT PROPERTIES II
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 MARCH 31, 2006
 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
 MARCH 31, 2006
 UNAUDITED
 NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  NOTE 6
 PAYABLE TO LIMITED PARTNERS
  NOTE 7
 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 31,2006
    
    
    2005Bear Valley Rd., Victorville, CA
    
    $
    29,041
    
    
    $
    30,162West Valley Blvd., Colton, CA
    
    
    34,810
    
    
    
    39,896Palmdale Blvd., Palmdale, CA
    
    
    19,087
    
    
    
    19,941DeAnza Country Shopping Center,
Pedley, CA
    
    
    33,638
    
    
    
    31,804Varner Road, Thousand Palms, CA
    
    
    43,674
    
    
    
    45,540Total
    
    $
    160,250
    
    
    $
    167,343
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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 31,2006
    
    
    2005Accounting fees
    
    
    73.42
    %
    
    
    71.44
    %Distribution of information
to limited partners
    
    
    26.58
    
    
    
    28.56100.00
    %
    
    
    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
 (a)
    
    Evaluation of disclosure controls and procedures:
  (b)
    
    Changes in internal controls:
  (c)
    
    Asset-Backed issuers:
  -10-




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PART II. OTHER INFORMATION
  
  (a)
    
    Exhibits
 31.1
    
    Ronald Powell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
 (b)
    
    Reports
  -11-




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SIGNATURE
  DEL TACO RESTAURANT PROPERTIES II 
(a California limited partnership)
Registrant
Del Taco LLC
General PartnerDate: May 12, 2006
    /s/ Steven L. BrakeSteven L. BrakeTreasurer -12-




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Exhibit Index
 31.1
    
    Ronald Powell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-