SYRACUSE — Carrols Restaurant Group, Inc. (NASDAQ: TAST) today reported a first-quarter net loss from continuing operations of $5.2 million, or 23 cents a share, wider than its $2.9 million, or 13 cents a share, loss in the year-ago period.
Restaurant sales jumped 83 percent to $156.1 million, including $70.4 million in sales from the 278 additional Burger King restaurants that Carrols acquired from Burger King Corp. at the end of last May.
Same-store sales at the Burger King restaurants that Syracuse–based Carrols already owned before that acquisition rose 1 percent in the first quarter, compared to an increase of 5.9 percent in the prior-year period.
“Despite a challenging consumer environment early in the year, our sales trends improved in March, resulting in an increase in comparable restaurant sales at our legacy restaurants of 1 percent for the first quarter. This was better than our initial expectations, and we were generally pleased given the challenging 5.9% comparable restaurant sales comparison from the prior year and the more seasonable weather conditions experienced in 2013,” Daniel T. Accordino, CEO of Carrols Restaurant Group, said in a news release. “Profitability and operating margins also increased at our legacy restaurants reflecting favorable sales mix changes and a higher average check from Burger King’s product innovation and marketing initiatives over the past year.”
As of March 31, Carrols owned and operated 571 Burger King restaurants. It is Burger King’s largest franchisee globally.
For 2013, Carrols is forecasting total sales of $670 million to $700 million, and the company expects to close six to eight Burger King restaurants this year.
Contact Rombel at arombel@cnybj.com