Exhibit 11
                                
                        TACO CABANA, INC.
                          Statement re
                Computation of Per Share Earnings
                                
                                

                                
                               13 Weeks Ended              39 Weeks Ended
                          -------------------------   --------------------------
                          September 29,   October 1,  September 29,   October 1,
                              1996           1995          1996           1995
                          ------------    ----------  ------------    ----------
                                                        
Net Income (Loss)         $ 1,220,000    $   751,000  $  1,401,000  $(4,239,000)
                                                                                       
Net Income (Loss) per                                                     
  share Computation:
                                                                          
Average Common Shares                                                     
  Outstanding              15,700,302     15,723,263    15,690,674   15,564,162
Common stock equivalents-                                                              
  dilutive options            314,050              -       261,565            -
                           ----------     ----------    ----------   ----------                                            
Average outstanding                                                       
  common and common                                                       
  equivalent shares        16,014,352     15,723,263    15,952,239   15,564,162
                           ==========     ==========    ==========   ==========                                               
Net Income (Loss) per                                                     
  share                   $      0.08    $      0.05   $      0.09  $     (0.27)
                           ==========     ==========    ==========   ==========