Exhibit 11
                                
                        TACO CABANA, INC.
                          Statement re
                Computation of Per Share Earnings
                                
                                
                                
                             13 Weeks Ended            26 Weeks Ended
                          ---------------------    -----------------------
                          June 30,     June 29,     June 30,     June 29,
                            1996         1997         1996         1997
                          --------     --------    --------      ---------

Net Income                $ (553,000) $   876,000    $ 181,000  $1,432,000
                                                                          
Net Income per share Computation:
                                                                          
Average Common Shares                                                     
  Outstanding              15,687,689  15,680,713   15,685,360  15,693,625
Common stock equivalents-                                                 
  dilutive options                  -           -      266,379           -
                          -----------   ----------   ---------   ----------
                                                                          
Average outstanding                                                       
  common and common                                                       
  equivalent shares        15,687,689  15,680,713   15,952,239  15,693,625
                                                                          
Net Income per share      $      0.04 $      0.06  $      0.01   $ (0.09)
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