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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 June 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 StatementsCondensed Balance Sheets at June 30, 2007 (Unaudited) and
December 31, 2006
    
    
    3Condensed Statements of Income for the three and six months ended
June 30, 2007 and 2006 (Unaudited)
    
    
    4Condensed Statements of Cash Flows for the six months ended
June 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
    
    
    12PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    
    13SIGNATURE
    
    
    14EXHIBIT 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
 June 30,
    
    
    December 31,2007
    
    
    2006(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    157,131
    
    
    $
    189,410Receivable from Del Taco LLC
    
    
    50,313
    
    
    
    49,049Deposits
    
    
    1,534
    
    
    
    1,686Total current assets
    
    
    208,978
    
    
    
    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
    
    
    1,998,250
    
    
    
    1,977,8911,945,585
    
    
    
    1,965,944$
    2,154,563
    
    
    $
    2,206,089LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    36,814
    
    
    $
    42,160Accounts payable
    
    
    11,456
    
    
    
    15,112Total current liabilities
    
    
    48,270
    
    
    
    57,272PARTNERS EQUITY:Limited partners; 27,006 units outstanding at June 30,
2007 and December 31, 2006
    
    
    2,134,281
    
    
    
    2,176,379General partner-Del Taco LLC
    
    
    (27,988
    )
    
    
    (27,562
    )2,106,293
    
    
    
    2,148,817$
    2,154,563
    
    
    $
    2,206,089
  -3-




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DEL TACO RESTAURANT PROPERTIES II
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006RENTAL REVENUES
    
    $
    150,528
    
    
    $
    164,720
    
    
    $
    294,324
    
    
    $
    324,971EXPENSES:General and administrative
    
    
    12,362
    
    
    
    11,268
    
    
    
    53,267
    
    
    
    52,827Depreciation
    
    
    8,849
    
    
    
    13,545
    
    
    
    20,359
    
    
    
    27,09021,211
    
    
    
    24,813
    
    
    
    73,626
    
    
    
    79,917Operating income
    
    
    129,317
    
    
    
    139,907
    
    
    
    220,698
    
    
    
    245,054OTHER INCOME:Interest
    
    
    817
    
    
    
    753
    
    
    
    1,574
    
    
    
    1,479Other
    
    
    550
    
    
    
    300
    
    
    
    1,300
    
    
    
    625Net income
    
    $
    130,684
    
    
    $
    140,960
    
    
    $
    223,572
    
    
    $
    247,158Net income per limited
partnership unit (note 2)
    
    $
    4.79
    
    
    $
    5.17
    
    
    $
    8.20
    
    
    $
    9.06Number 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)
 Six Months EndedJune 30,2007
    
    
    2006CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    223,572
    
    
    $
    247,158Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    20,359
    
    
    
    27,090Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    (1,264
    )
    
    
    727Deposits
    
    
    152
    
    
    
    (989
    )Payable to limited partners
    
    
    (5,346
    )
    
    
    1,050Accounts payable
    
    
    (3,656
    )
    
    
    3,345Net cash provided
by operating
activities
    
    
    233,817
    
    
    
    278,381CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (266,096
    )
    
    
    (294,304
    )Net decrease in cash
    
    
    (32,279
    )
    
    
    (15,923
    )Beginning cash balance
    
    
    189,410
    
    
    
    198,980Ending cash balance
    
    $
    157,131
    
    
    $
    183,057
  -5-




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DEL TACO RESTAURANT PROPERTIES II
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND SIX MONTHS ENDED JUNE 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 SIX MONTHS ENDED JUNE 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 SIX MONTHS ENDED JUNE 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
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Bear Valley Rd., Victorville, CA
    
    $
    24,501
    
    
    $
    29,989
    
    
    $
    48,339
    
    
    $
    59,031West Valley Blvd., Colton, CA
    
    
    32,514
    
    
    
    35,442
    
    
    
    64,872
    
    
    
    70,253Palmdale Blvd., Palmdale, CA
    
    
    19,232
    
    
    
    19,883
    
    
    
    37,329
    
    
    
    38,969DeAnza Country Shopping Center,
Pedley, CA
    
    
    37,673
    
    
    
    34,850
    
    
    
    73,481
    
    
    
    68,488Varner Road, Thousand Palms, CA
    
    
    36,608
    
    
    
    44,556
    
    
    
    70,303
    
    
    
    88,230Total
    
    $
    150,528
    
    
    $
    164,720
    
    
    $
    294,324
    
    
    $
    324,971
  -9-




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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
    
    
    Six Months EndedJune 30,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Accounting fees
    
    
    50.30
    %
    
    
    51.77
    %
    
    
    75.50
    %
    
    
    72.71
    %Distribution of
information
to limited
partners
    
    
    49.70
    %
    
    
    48.23
    %
    
    
    24.50
    %
    
    
    27.29
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %






Significant Recent Accounting Pronouncements




Off Balance Sheet Arrangements


-10-




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


Critical Accounting Policies and Estimates




Property and Equipment:







Item 3. Quantitative and Qualitative Disclosures About Market Risk.




-11-




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Item 4. Controls and Procedures
 (a)
    
    Evaluation of disclosure controls and procedures:
  (b)
    
    Changes in internal controls:
  (c)
    
    Asset-Backed issuers:
  -12-




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PART II. OTHER INFORMATION
  
 Item 6.
Exhibits and Reports
 (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.
 -13-




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SIGNATURE
  DEL TACO RESTAURANT PROPERTIES II
(a California limited partnership)
Registrant
Del Taco LLC
General PartnerDate:  August 13, 2007
    /s/ Steven L. BrakeSteven L. BrakeTreasurer -14-




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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