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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 September 30, 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 Statements
    
    3Condensed Balance Sheets at September 30, 2007 (Unaudited) and December 31, 2006
    
    3Condensed Statements of Income for the three and nine months ended September 30, 2007 and 2006 (Unaudited)
    
    4Condensed Statements of Cash Flows for the nine months ended September 30, 2007 and 2006 (Unaudited)
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    9Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    11Item 4. Controls and Procedures
    
    11PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    12SIGNATURE
    
    13EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
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PART I. FINANCIAL INFORMATION
 
 ITEM I. FINANCIAL STATEMENTS
 DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED BALANCE SHEETS
 September 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    185,423
    
    
    $
    189,410Receivable from Del Taco LLC
    
    
    46,642
    
    
    
    49,049Deposits
    
    
    1,534
    
    
    
    1,686Total current assets
    
    
    233,599
    
    
    
    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
    
    
    2,007,099
    
    
    
    1,977,8911,936,736
    
    
    
    1,965,944$
    2,170,335
    
    
    $
    2,206,089LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    34,470
    
    
    $
    42,160Accounts payable
    
    
    16,986
    
    
    
    15,112Total current liabilities
    
    
    51,456
    
    
    
    57,272PARTNERS EQUITY:Limited
partners; 27,006 units outstanding at September 30, 2007 and December 31, 2006
    
    
    2,146,741
    
    
    
    2,176,379General partner-Del Taco LLC
    
    
    (27,862
    )
    
    
    (27,562
    )2,118,879
    
    
    
    2,148,817$
    2,170,335
    
    
    $
    2,206,089
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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006RENTAL REVENUES
    
    $
    149,224
    
    
    $
    159,228
    
    
    $
    443,547
    
    
    $
    484,199EXPENSES:General and administrative
    
    
    13,381
    
    
    
    9,474
    
    
    
    66,648
    
    
    
    62,301Depreciation
    
    
    8,849
    
    
    
    13,545
    
    
    
    29,208
    
    
    
    40,63522,230
    
    
    
    23,019
    
    
    
    95,856
    
    
    
    102,936Operating income
    
    
    126,994
    
    
    
    136,209
    
    
    
    347,691
    
    
    
    381,263OTHER INCOME:Interest
    
    
    787
    
    
    
    1,027
    
    
    
    2,362
    
    
    
    2,506Other
    
    
    425
    
    
    
    450
    
    
    
    1,725
    
    
    
    1,075Net income
    
    $
    128,206
    
    
    $
    137,686
    
    
    $
    351,778
    
    
    $
    384,844Net income per limited
partnership unit (note 2)
    
    $
    4.70
    
    
    $
    5.05
    
    
    $
    12.90
    
    
    $
    14.11Number of units used in computing
per unit amounts
    
    
    27,006
    
    
    
    27,006
    
    
    
    27,006
    
    
    
    27,006
  -4-




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DEL TACO RESTAURANT PROPERTIES II
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months EndedSeptember 30,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    351,778
    
    
    $
    384,844Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    29,208
    
    
    
    40,635Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    2,407
    
    
    
    6,971Deposits
    
    
    152
    
    
    
    (837
    )Payable to limited partners
    
    
    (7,690
    )
    
    
    3,432Accounts payable
    
    
    1,874
    
    
    
    (126
    )Net cash provided by operating activities
    
    
    377,729
    
    
    
    434,919CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (381,716
    )
    
    
    (434,495
    )Net (decrease) increase in cash
    
    
    (3,987
    )
    
    
    424Beginning cash balance
    
    
    189,410
    
    
    
    198,980Ending cash balance
    
    $
    185,423
    
    
    $
    199,404
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DEL TACO RESTAURANT PROPERTIES II
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007
 UNAUDITED
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT
   -6-




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DEL TACO RESTAURANT PROPERTIES II
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007
 UNAUDITED
 NOTE 3  LEASING ACTIVITIES
    NOTE 4  TRANSACTIONS WITH DEL TACO
    -7-




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DEL TACO RESTAURANT PROPERTIES II
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007
 UNAUDITED
 NOTE 5  DISTRIBUTIONS
  NOTE 6
 PAYABLE TO LIMITED PARTNERS
  NOTE 7
 CONCENTRATION OF RISK
  NOTE 8  ACQUISITION OF GENERAL PARTNER
  -8-




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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 Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Bear Valley Rd., Victorville, CA
    
    $
    25,907
    
    
    $
    28,670
    
    
    $
    74,245
    
    
    $
    87,700West Valley Blvd., Colton, CA
    
    
    32,577
    
    
    
    35,969
    
    
    
    97,448
    
    
    
    106,222Palmdale Blvd., Palmdale, CA
    
    
    18,015
    
    
    
    19,759
    
    
    
    55,344
    
    
    
    58,728DeAnza Country Shopping Center, Pedley, CA
    
    
    37,922
    
    
    
    36,114
    
    
    
    111,404
    
    
    
    104,603Varner Road, Thousand Palms, CA
    
    
    34,803
    
    
    
    38,716
    
    
    
    105,106
    
    
    
    126,946Total
    
    $
    149,224
    
    
    $
    159,228
    
    
    $
    443,547
    
    
    $
    484,199
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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 Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2007
    
    2006
    
    2007
    
    2006Accounting fees
    
    
    44.32
    %
    
    
    57.59
    %
    
    
    69.24
    %
    
    
    70.41
    %Distribution of information
to limited partners
    
    
    55.68
    %
    
    
    42.41
    %
    
    
    30.76
    %
    
    
    29.59
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  Critical Accounting Policies and Estimates
  -10-




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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
       -11-




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PART II. OTHER INFORMATION
  
  (a)
    
    Exhibits
 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
 (b)
    
    ReportsNone.
 -12-




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SIGNATURE
  DEL TACO RESTAURANT PROPERTIES II(a California limited partnership)RegistrantDel Taco LLCGeneral PartnerDate: November 14, 2007
    

/s/ Steven L. BrakeSteven L. BrakeTreasurer
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Exhibits
    
    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
 -14-