According to Technomic, total restaurant industry revenues in the United States for 2005 were $330.8 billion, an increase of 5.6% over 2004. Sales in the overall U.S. restaurant industry are projected by Technomic to increase at a compound annual growth rate of 5.3% from 2005 through 2010.

According to Technomic, sales growth in 2005 of quick-casual chains in the Technomic Top 500 restaurant chains was 11.8% as compared to 7.0% for the overall Top 500 restaurant chains, which includes all five major segments.

It is believed that the quick-service and quick-causal restaurant segments meet consumers’ desire for a convenient, reasonably priced restaurant experience. In addition, it is believed that the consumers’ need for meals prepared outside of the home, including takeout, has increased significantly over historical levels as a result of the greater numbers of working women and single parent families. For example, according to the U.S. Bureau of Labor Statistics, the percentage of mothers with children under age six participating in the workforce has increased from 39% in 1975 to 64% in 2002. According to the U.S. Census Bureau, the number of children living in households with two parents has decreased from approximately 85% in 1970 to 70% in 2001.

The Company’s Hispanic Brands operate in the quick-casual restaurant segment, combining the convenience and value of quick-service restaurants with the menu variety, use of fresh ingredients and food quality more typical of casual dining restaurants.

The Company’s Pollo Tropical restaurants are known for their fresh grilled chicken marinated in a proprietary blend of tropical fruit juices and spices. The Company’s menu also features other items including roast pork, sandwiches, grilled ribs offered with a selection of sauces, authentic “made from scratch” side dishes and salads. Most menu items are made fresh daily in each of the Company’s Pollo Tropical restaurants, which feature open display cooking that enables customers to observe the preparation of menu items, including chicken grilled on large, open-flame grills. Pollo Tropical opened its first restaurant in 1988 in Miami. As of June 30, 2006, the Company owned and operated a total of 71 Pollo Tropical restaurants, 59 of which were located in South Florida, 11 of which were located in Central Florida and one of which was located in the New York City metropolitan area, in northern New Jersey.

The Company’s Taco Cabana restaurants serve fresh, high-quality Tex-Mex and traditional Mexican style food, including sizzling fajitas, quesadillas, enchiladas, burritos, tacos, other Tex-Mex dishes, fresh-made flour tortillas, frozen margaritas and beer. Most menu items are made fresh daily in each of the Company’s Taco Cabana restaurants, which feature open display cooking that enables customers to observe the preparation of menu items, including fajitas cooking on a grill and a machine making fresh tortillas. A majority of the Company’s Taco Cabana restaurants are open 24 hours a day. Taco Cabana pioneered the Mexican patio café concept with its first restaurant in San Antonio, Texas in 1978. As of June 30, 2006, the Company owned and operated 139 Taco Cabana restaurants located in Texas, Oklahoma and New Mexico, of which 133 were located in Texas.

Burger King is the second largest hamburger restaurant chain in the world and the Company is the largest franchisee in the Burger King system. Burger King restaurants are part of the quick-service restaurant segment which is the largest of the five major segments of the U.S. restaurant industry based on 2005 sales. Burger King restaurants feature the popular flame-broiled Whopper sandwich, as well as a variety of hamburgers and other sandwiches, fries, salads, breakfast items and other offerings. As of June 30, 2006, the Company operated 330 Burger King restaurants located in 12 Northeastern, Midwestern and Southeastern states.

Depreciation and amortization expense increased slightly to $16.8 million in the first six months of 2006 from $16.7 million in the first six months of 2005.

Interest expense increased $3.5 million to $24.4 million in the first six months of 2006 from $20.9 million in the first six months of 2005.

Net income was $4.6 million in the first six months of 2006 compared to a net loss of $10.5 million in the first six months of 2005.