Carrols Restaurant Group Q3 profit rises 29 percent

SYRACUSE, N.Y. — Carrols Restaurant Group, Inc. (NASDAQ: TAST) reported net income of $3.6 million, or 8 cents a share, during its third quarter ending Sept. 30.

That’s up 29 percent from $2.8 million, or 6 cents a share, in the prior-year quarter, Carrols said in a Tuesday news release.

Syracuse–based Carrols says it is the largest Burger King franchisee in the U.S. and has operated Burger King restaurants since 1976.

Restaurant sales totaled $296.9 million, up 4.1 percent from $285.2 million in the third quarter of 2017.

Carrols reported that comparable-restaurant sales increased 1.6 percent compared to a 7.5 percent increase in the prior year quarter.

The firm estimates comparable restaurant sales were hurt by about 0.5 percent with the effects of Hurricane Florence.

The company views the third quarter comparable-restaurant sales increase “positively,” considering the negative impact from Hurricane Florence and the “formidable” 7.5 percent comparison from the prior year, Daniel Accordino, CEO of Carrols, said in the company’s news release.

“Product promotions included heightened value offerings such as the $3.49 King’s Meal deal, $1.69 chicken nuggets and $0.79 sausage biscuit, balanced by premium items such as the 2 for $6 mix and match, the Brewhouse King and our Sourdough sandwiches. We were further encouraged that adjusted EBITDA growth of 8.7 percent and adjusted net income growth of 15.0 percent, respectively, outpaced top line growth of 4.1 percent,” said Accordino. EBITDA is short for earnings before interest, taxes, depreciation, and amortization.

Carrols owned and operated 838 Burger King restaurants at the end of the third quarter of 2018. It acquired 10 additional Burger King restaurants on Oct. 2 following the end of the quarter.

Contact Reinhardt at ereinhardt@cnybj.com