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Carrols Restaurant Group shaves loss in Q3

SYRACUSE — Carrols Restaurant Group, Inc. (NASDAQ: TAST), a Syracuse–based Burger King franchisee, today announced a net loss of $2.8 million, or 12 cents per share, during the third quarter that ended Sept. 30.

The figure compares to a net loss from continuing operations of $6.3 million, or 28 cents a share, in the prior-year period, the company said in its earnings release.

The current net-loss figure included a charge of $1.1 million, or 3 cents per share after taxes, related to impairment charges, Carrols said.

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The net loss from continuing operations in the prior-year period included integration costs related to the acquisition and costs related to the EEOC litigation the firm settled in early 2013, which were about $5.3 million in total, or 14 cents per share after tax, according to the company.

Carrols Restaurant Group generated sales of more than $168 million in the third quarter, down slightly from more than $169 million during the same period in 2012.

The company attributes the 0.7 percent sales decline in the third quarter to eight fewer restaurants generating revenue.

Comparable restaurant sales increased 0.4 percent in the third quarter compared to a year ago. Carrols had posted a 6.2 percent increase in comparable-restaurant sales in the same period in 2012.  Despite the slower sales growth, it marked nine consecutive quarters of positive comparable-restaurant sales growth, the firm said.

Comparable-restaurant sales increased 0.6 percent at legacy restaurants and edged up 0.2 percent at the restaurants acquired in May 2012, according to Carrols.

Carrols’ increased restaurant-level profitability and higher operating margins demonstrate the firm’s “progress” over the past year in improving operating performance at the acquired restaurants while continuing to maintain “strong” margins at its legacy restaurants, Daniel Accordino, CEO of Carrols Restaurant Group, Inc. said in the news release.

Carrols has also lowered its full-year sales projection “slightly” to reflect its third-quarter results, he added.

“However, October sales trends have reaccelerated and we expect fourth quarter comparable-restaurant sales to increase 2 percent to 2.5 percent as we finish the year,” Accordino said.

Carrols shares fell 2 cents to $5.63 today. The company issued its earnings report before the open of trading today.

As of Sept. 29, Carrols owned and operated 564 Burger King locations. It is the largest Burger King franchisee in the nation.

 

Contact Reinhardt at ereinhardt@cnybj.com

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