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Taco Cabana, Inc. operates and franchises restaurants of Mexican patio style under the names of ''Taco Cabana'' and ''Two Pesos'', primarily located in the Southwestern U.S. For the 53 weeks ended 1/3/99, revenues rose 8% to $143 million. Net income totalled $13.7 million, vs. a net loss of $73.2 million. Revenues reflect increased sales at existing and new restaurants. Earnings reflect the reversal of a $2.7 million special charge and no income taxes.
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