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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, 2001.

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. 2-92121

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)
|                                                               
|23041 Avenida De La Carlota, Laguna Hills,
	California          |  | 92653                                   
|(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 
x  No 
o



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TABLE OF CONTENTS



|                           |                                                                                               |                               |  |  |  |  |  | 
|-------------------------- | --------------------------------------------------------------------------------------------- | ----------------------------- |  |  |  |  |  | 
|                           |                                                                                               | BALANCE SHEETS               
|                           |                                                                                               | STATEMENTS OF INCOME         
|                           |                                                                                               | STATEMENTS OF CASH FLOWS     
|                           |                                                                                               | NOTES TO FINANCIAL STATEMENTS
|                           | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|PART II. OTHER INFORMATION
|                           | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES                



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INDEX
 DEL TACO RESTAURANT PROPERTIES II

|                                                                                                 |  |             |    | 
|------------------------------------------------------------------------------------------------ |  | ----------- | -- | 
|PART I. FINANCIAL INFORMATION                                                                    |  | PAGE NUMBER
|                                                                                                 |  |            
|                                                                                                
|Item 1. Financial Statements and Supplementary Data                                              | 
|                                                                                                
|Balance Sheets at September 30, 2001 (Unaudited) and
December 31, 2000                           |  |             | 3  | 
|                                                                                                
|Statements of Income for the three and nine months ended
September 30, 2001 and 2000 (Unaudited) |  |             | 4  | 
|                                                                                                
|Statements of Cash Flows for the nine months ended
September 30, 2001 and 2000 (Unaudited)       |  |             | 5  | 
|                                                                                                
|Notes to Financial Statements                                                                    |  |             | 6  | 
|                                                                                                
|Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations    |  |             | 8  | 
|                                                                                                
|PART II. OTHER INFORMATION                                                                       |  |             |    | 
|                                                                                                
|Item 6. Exhibits and Reports on Form 8-K                                                         |  |             | 10 | 
|                                                                                                
|SIGNATURES                                                                                       |  |             | 11 | 



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DEL TACO RESTAURANT PROPERTIES II
 BALANCE SHEETS

|                                 |                                 |                           |           |               |         |              |           |           |         | 
|-------------------------------- | ------------------------------- | ------------------------- | --------- | ------------- | ------- | ------------ | --------- | --------- | ------- | 
|                                 |                                 |                           |           | September 30, |         | December 31,
|                                 |                                 |                           |           | 2001          |         | 2000        
|                                 |                                 |                           |           |               |         |             
|                                 |                                 |                           |           | (Unaudited)   |         |              |           |          
|                                
|                                
|                                
|                                
|ASSETS                          
|                                
|                                
|                                
|                                
|CURRENT ASSETS:                  |                                 |                           |           |               |         |              |           |          
|                                 | Cash                            |                           | $         | 172,553       |         |              | $         | 151,501   |        
|                                 | Receivable from General Partner |                           |           | 47,943        |         |              |           | 47,351    |        
|                                 | Deposits                        |                           |           | 1,000         |         |              |           | 1,414     |        
|                                 |                                 |                           |           |               |         |              |           |          
|                                 |                                 | Total current assets      |           |               | 221,496 |              |           |           | 200,266 | 
|                                 |                                 |                           |           |               |         |              |           |          
|PROPERTY AND EQUIPMENT, at cost: |                                 |                           |           |               |         |              |           |          
|                                 | Land and improvements           |                           |           | 1,806,006     |         |              |           | 1,806,006 |        
|                                 | Buildings and improvements      |                           |           | 1,238,879     |         |              |           | 1,238,879 |        
|                                 | Machinery and equipment         |                           |           | 898,950       |         |              |           | 898,950   |        
|                                 |                                 |                           |           |               |         |              |           |          
|                                 |                                 |                           | 3,943,835 |               |         |              | 3,943,835 |          
|                                 | Lessaccumulated depreciation   |                           |           | 1,693,446     |         |              |           | 1,652,811 |        
|                                 |                                 |                           |           |               |         |              |           |          
|                                 |                                 |                           | 2,250,389 |               |         |              | 2,291,024 |          
|                                 |                                 |                           |           |               |         |              |           |          
|                                 |                                 | $                         | 2,471,885 |               |         | $            | 2,491,290 |          
|                                 |                                 |                           |           |               |         |              |           |          
|                                
|                                
|                                
|                                
|LIABILITIES AND PARTNERS EQUITY
|                                
|CURRENT LIABILITIES:             |                                 |                           |           |               |         |              |           |          
|                                 | Payable to Limited Partners     |                           | $         | 25,177        |         |              | $         | 18,104    |        
|                                 | Accounts payable                |                           |           | 9,951         |         |              |           | 11,995    |        
|                                 |                                 |                           |           |               |         |              |           |          
|                                 |                                 | Total current liabilities |           |               | 35,128  |              |           |           | 30,099  | 
|                                 |                                 |                           |           |               |         |              |           |          
|PARTNERS EQUITY:                |                                 |                           |           |               |         |              |           |          
|                                 | Limited Partners                |                           |           | 2,461,439     |         |              |           | 2,485,629 |        
|                                 | General Partner-Del Taco, Inc.  |                           |           | (24,682       | )       |              |           | (24,438   | )      
|                                 |                                 |                           |           |               |         |              |           |          
|                                 |                                 |                           | 2,436,757 |               |         |              | 2,461,191 |          
|                                 |                                 |                           |           |               |         |              |           |          
|                                 |                                 | $                         | 2,471,885 |               |         | $            | 2,491,290 |          
|                                 |                                 |                           |           |               |         |              |           |          

The accompanying notes are an
integral part of these financial statements.



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DEL TACO RESTAURANT PROPERTIES II
 STATEMENTS OF INCOME
 (Unaudited)

|          |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |         |         | 
|--------- | --------------------------------------- | ---------- | ------- | ------------------ | ------- | ----------------- | ------- | ------- | ------- | ---- | ------- | ------- | ------- |  | ------- | ------- | ------- | 
|          |                                         |            |         | Three Months Ended |         | Nine Months Ended
|          |                                         |            |         | September 30,      |         | September 30,    
|          |                                         |            |         |                    |         |                  
|          |                                         |            |         | 2001               |         | 2000              |         | 2001    |         | 2000
|          |                                         |            |         |                    |         |                   |         |         |         |     
|REVENUES: |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        
|          | Rent                                    |            | $       | 148,683            |         |                   | $       | 140,179 |         |      | $       | 427,820 |         |  | $       | 389,994 |        
|          | Interest                                |            |         | 971                |         |                   |         | 1,401   |         |      |         | 3,311   |         |  |         | 2,905   |        
|          | Other                                   |            |         | 650                |         |                   |         | 550     |         |      |         | 1,300   |         |  |         | 1,020   |        
|          |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        
|          |                                         |            | 150,304 |                    |         |                   | 142,130 |         |         |      | 432,431 |         |         |  | 393,919 |        
|          |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        
|EXPENSES: |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        
|          | General and administrative              |            |         | 7,457              |         |                   |         | 8,669   |         |      |         | 43,866  |         |  |         | 42,465  |        
|          | Depreciation                            |            |         | 13,545             |         |                   |         | 13,545  |         |      |         | 40,635  |         |  |         | 40,635  |        
|          |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        
|          |                                         |            | 21,002  |                    |         |                   | 22,214  |         |         |      | 84,501  |         |         |  | 83,100  |        
|          |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        
|          |                                         | Net income |         | $                  | 129,302 |                   |         | $       | 119,916 |      |         | $       | 347,930 |  |         | $       | 310,819 | 
|          |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        
|          | Net income per limited
partnership unit |            | $       | 4.74               |         |                   | $       | 4.40    |         |      | $       | 12.75   |         |  | $       | 11.39   |        
|          |                                         |            |         |                    |         |                   |         |         |         |      |         |         |         |  |         |        

The accompanying notes are an
integral part of these financial statements.



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DEL TACO RESTAURANT PROPERTIES II
 STATEMENTS OF CASH FLOWS
 (Unaudited)

|                                                                                  |                                                              |                                           |          |                   |         |      |          |        |         | 
|--------------------------------------------------------------------------------- | ------------------------------------------------------------ | ----------------------------------------- | -------- | ----------------- | ------- | ---- | -------- | ------ | ------- | 
|                                                                                  |                                                              |                                           |          | Nine Months Ended
|                                                                                  |                                                              |                                           |          | September 30,    
|                                                                                  |                                                              |                                           |          |                  
|                                                                                  |                                                              |                                           |          | 2001              |         | 2000
|                                                                                  |                                                              |                                           |          |                   |         |     
|                                                                                 
|                                                                                 
|                                                                                 
|                                                                                 
|CASH FLOWS FROM OPERATING ACTIVITIES:                                             |                                                              |                                           |          |                   |         |      |          |       
|                                                                                 
|Net income                                                                        |                                                              | $                                         | 347,930  |                   |         | $    | 310,819  |       
|Adjustments to reconcile net income to net
cash provided by operating activities: |                                                              |                                           |          |                   |         |      |          |       
|                                                                                  | Depreciation                                                 |                                           |          | 40,635            |         |      |          | 40,635 |        
|                                                                                  | Increase in receivable from General Partner                  |                                           |          | (592              | )       |      |          | (4,710 | )      
|                                                                                  | Decrease in deposits                                         |                                           |          | 414               |         |      |          |       |        
|                                                                                  | Increase in accounts payable and payable
to limited partners |                                           |          | 5,029             |         |      |          | 8,141  |        
|                                                                                  |                                                              |                                           |          |                   |         |      |          |       
|                                                                                  |                                                              | Net cash provided by operating activities |          |                   | 393,416 |      |          |        | 354,885 | 
|                                                                                 
|CASH FLOWS FROM FINANCING ACTIVITIES:                                             |                                                              |                                           |          |                   |         |      |          |       
|                                                                                 
|Cash distributions to partners                                                    |                                                              |                                           | (372,364 | )                 |         |      | (329,946 | )     
|                                                                                  |                                                              |                                           |          |                   |         |      |          |       
|Net increase in cash                                                              |                                                              |                                           | 21,052   |                   |         |      | 24,939   |       
|Beginning cash balance                                                            |                                                              |                                           | 151,501  |                   |         |      | 139,292  |       
|                                                                                  |                                                              |                                           |          |                   |         |      |          |       
|Ending cash balance                                                               |                                                              | $                                         | 172,553  |                   |         | $    | 164,231  |       
|                                                                                  |                                                              |                                           |          |                   |         |      |          |       

The accompanying notes are an
integral part of these financial statements.



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DEL TACO RESTAURANT PROPERTIES II
 NOTES TO FINANCIAL STATEMENTS
 SEPTEMBER 30, 2001

NOTE 1  BASIS OF PRESENTATION

The accompanying financial statements, some of which are unaudited, have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements and should therefore be read in conjunction
with the financial statements and notes thereto contained in the partnerships
annual report on Form 10-K for the year ended December 31, 2000. In the
opinion of management, all adjustments (consisting of normal recurring
accruals) necessary to present fairly the partnerships financial position at
September 30, 2001, the results of operations and cash flows for the nine month
periods ended September 30, 2001 and 2000 have been included. Operating
results for the three and nine months ended September 30, 2001 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2001.

NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT

Net income per limited partnership unit is based upon the weighted average
number of units outstanding during the periods presented which amounted to
27,006 in 2001 and 2000.

Pursuant to the partnership agreement, annual partnership income or loss is
allocated one percent to the General Partner and 99 percent to the limited
partners. Partnership gains from any sale or refinancing will be allocated one
percent to the General Partner and 99 percent to the limited partners until
allocated gains and profits equal losses, distributions and syndication costs
previously allocated. Additional gains will be allocated 15 percent to the
General Partner and 85 percent to the limited partners.

NOTE 3  LEASING ACTIVITIES

The partnership leases certain properties for operation of restaurants to Del
Taco, Inc. on a triple net basis. The leases are for terms of 35 years
commencing with the completion of the restaurant facility located on each
property and require monthly rentals equal to 12 percent of the gross sales of
the restaurants. There is no minimum rental under any of the leases.

For the three months ended September 30, 2001, the five restaurants operated by
Del Taco, for which the partnership is the lessor, had combined, unaudited
sales of $1,239,022 and net income of $102,945 as compared to $1,168,160 and
$73,032 respectively, for the corresponding period in 2000. Net income by
restaurant includes charges for general and administrative expenses incurred in
connection with supervision of restaurant operations and interest expense.



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DEL TACO RESTAURANT PROPERTIES II
 NOTES TO FINANCIAL STATEMENTS  CONTINUED
 SEPTEMBER 30, 2001

NOTE 3  LEASING ACTIVITIES  continued

For the nine months ended September 30, 2001, the five restaurants operated by
Del Taco, for which the partnership is the lessor, had combined, unaudited
sales of $3,565,163 and net income of $276,567 as compared to $3,249,951 and
$184,709 respectively, for the corresponding period in 2000.

NOTE 4  TRANSACTIONS WITH DEL TACO

The receivable from General Partner consists primarily of rent accrued for the
month of September. The September rent was collected on October 12, 2001.

Del Taco, Inc. serves in the capacity of general partner in other partnerships
which are engaged in the business of operating restaurants and three other
partnerships which were formed for the purpose of acquiring real property in
California for construction of Mexican-American restaurants for lease under
long-term agreements to Del Taco, Inc. for operation under the Del Taco trade
name.

In addition, see Note 5 with respect to certain distributions to the General
Partner.

NOTE 5  DISTRIBUTIONS

On October 16, 2001, a distribution to the limited partners of $140,952 or
approximately $5.22 per limited partnership unit, was approved. Such
distribution was paid on October 23, 2001. The General Partner also received a
distribution of $1,424 with respect to its 1% partnership interest.

NOTE 6  RECENT ACCOUNTING PRONOUNCEMENTS

In June 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) No. 141, Business Combinations and SFAS
No. 142, Goodwill and Other Intangible Assets. SFAS No. 141 addresses
financial accounting and reporting for business combinations and is effective
for all business combinations after June 30, 2001. SFAS No. 142 addresses
financial accounting and reporting for acquired goodwill and other intangible
assets and is effective for fiscal years beginning after December 15, 2001.

In August 2001, the FASB issued SFAS No. 144 Accounting for the Impairment or
Disposal of Long-Lived Assets. SFAS No. 144 addresses financial accounting
and reporting for long-lived assets to be disposed of and is effective for
fiscal years beginning after December 15, 2001.

The adoption of these standards is not expected to have a material impact on
the Companys financial position or results of operations.



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|        |                                                                                      
|------- | -------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial Condition and Results
of Operations

Liquidity and Capital Resources

The partnership offered limited partnership units for sale between September
1984 and December 1985. 15% of the $6.751 million raised through sale of
limited partnership units was used to pay commissions to brokers and to
reimburse the General Partner for offering costs incurred. Approximately $5.6
million of the remaining funds were used to acquire sites and build seven
restaurants. Two restaurants were sold in 1994.

The five restaurants leased to Del Taco make up almost all of the income
producing assets of the partnership. Therefore, the business of the
partnership is almost entirely dependent on the success of the Del Taco trade
name restaurants that lease the properties. The success of the restaurants is
dependent on a large variety of factors, including, but not limited to,
consumer demand and preference for fast food, in general, and for
Mexican-American food in particular.

Results of Operations

The partnership owned seven properties that were under long-term lease to Del
Taco for restaurant operations. Two restaurants were sold in 1994 and five are
currently operating.

The following table sets forth rental revenue earned by restaurant for the
year:

|                                           |       |   |                    |         |                   |   |        |         |      |   |         |         |  |   |         |         | 
|------------------------------------------ | ----- | - | ------------------ | ------- | ----------------- | - | ------ | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | 
|                                           |       |   | Three Months Ended |         | Nine Months Ended
|                                           |       |   | September 30,      |         | September 30,    
|                                           |       |   |                    |         |                  
|                                           |       |   | 2001               |         | 2000              |   | 2001   |         | 2000
|                                           |       |   |                    |         |                   |   |        |         |     
|Bear Valley Rd., Victorville, CA           |       | $ | 27,660             |         |                   | $ | 25,099 |         |      | $ | 76,879  |         |  | $ | 70,585  |        
|West Valley Blvd., Colton, CA              |       |   | 35,278             |         |                   |   | 34,294 |         |      |   | 102,225 |         |  |   | 93,913  |        
|Palmdale Blvd., Palmdale, CA               |       |   | 22,086             |         |                   |   | 22,242 |         |      |   | 65,850  |         |  |   | 61,136  |        
|DeAnza Country Shopping Center, Pedley, CA |       |   | 23,900             |         |                   |   | 22,174 |         |      |   | 68,038  |         |  |   | 60,402  |        
|Varner Road, Thousand Palms, CA            |       |   | 39,759             |         |                   |   | 36,370 |         |      |   | 114,828 |         |  |   | 103,958 |        
|                                           |       |   |                    |         |                   |   |        |         |      |   |         |         |  |   |         |        
|                                           | Total |   | $                  | 148,683 |                   |   | $      | 140,179 |      |   | $       | 427,820 |  |   | $       | 389,994 | 
|                                           |       |   |                    |         |                   |   |        |         |      |   |         |         |  |   |         |        

The partnership receives rental revenues equal to 12 percent of gross sales
from the restaurants. The partnership earned rental revenue of $148,683 during
the three month period ended September 30, 2001, which represents an increase
of $ 8,504 from 2000. The partnership earned rental revenue of $427,820 during
the nine month period ended September 30, 2001, which represents an increase of
$37,826 from 2000. The changes in rental revenue between 2001 and 2000 are
directly attributable to increases in sales levels at the restaurants under
lease.



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Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations  continued

The following table breaks down general and administrative expenses by type of
expense:

|                                                |  |                                  |        |      |  |  |        |  
|----------------------------------------------- |  | -------------------------------- | ------ | ---- |  |  | ------ | -
|                                                |  | Percentage of Total             
|                                                |  | General & Administrative Expense
|                                                |  | Nine Months Ended               
|                                                |  | September 30,                   
|                                                |  |                                 
|                                                |  | 2001                             |        | 2000
|                                                |  |                                  |        |     
|Accounting fees                                 |  |                                  | 61.54  | %    |  |  | 55.32  | %
|Distribution of information
to Limited Partners |  |                                  | 38.46  |      |  |  | 44.68  |  
|                                                |  |                                  |        |      |  |  |        |  
|                                                |  |                                  | 100.00 | %    |  |  | 100.00 | %
|                                                |  |                                  |        |      |  |  |        |  

For the three month period ended September 30, 2001, net income increased by
$9,386 from 2000 to 2001 due to the increase in revenues of $ 8,174 and the
$1,212 decrease in general and administrative expenses. For the nine month
period ended September 30, 2001, net income increased by $37,111 from 2000 to
2001 due to the increase in revenues of $38,512 which was partially offset by
the $1,401 increase in general and administrative expenses.

In accordance with recent U.S. Government regulations, the partnership is
required to file annual K-1 income tax forms with the Internal Revenue Service
electronically beginning in 2002 for the year ending December 31, 2001. In
order to comply with this regulation, the partnership will incur additional
costs to lease software to 1) prepare the tax forms electronically and 2)
maintain the underlying partnership database.

The General Partner and outside consultants evaluated available software and
selected a software package in the third calendar quarter of 2001. Estimates
of additional general and administrative costs to lease the software range from
$2,000 to $6,000 in 2001 (the conversion year) and range from $7,000 to $8,000
in each subsequent year.



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PART II. OTHER INFORMATION




Item 6. Exhibits and Reports on Form 8-K

(b)  No reports on Form 8-K were filed during the nine months ended September
30, 2001.



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



|Date: October 31, 2001 | DEL TACO RESTAURANT PROPERTIES II
(a California limited partnership)
Registrant
 
Del Taco, Inc.
General Partner
 
 
/s/ Robert J. Terrano
Robert J. Terrano
Executive Vice President,
Chief Financial Officer
|---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Date: October 31, 2001 | /s/ C. Douglas Mitchell
C. Douglas Mitchell
Vice President and Corporate
Controller
|---------------------- | -----------------------------------------------------------------------------------



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