Carrols Restaurant Group reports net loss in first quarter

SYRACUSE, N.Y. — Carrols Restaurant Group, Inc. (NASDAQ: TAST) reported a net loss of $5.6 million, or 16 cents a share, in the first quarter ending April 2.

The figures compare to net income of $2.1 million, or 5 cents a share, in the prior-year period, the company said in a news release issued Tuesday.

Syracuse–based Carrols is the world’s largest Burger King franchisee.

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The company said that its net loss in this year’s first quarter included $500,000 of impairment and other lease charges and $700,000 of acquisition expenses.

For the same period last year, net income included $200,000 in impairment and other lease charges, $400,000 in acquisition expenses, and a $500,000 gain from a “partial condemnation.”

Because the company had a net deferred income-tax asset-valuation allowance prior to the fourth quarter of 2016, Carrols did not record any income-tax expense in the first quarter of 2016.

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So, Carrols’ adjusted net loss in this year’s first quarter was $4.8 million, or 14 cents per share, compared to adjusted net income of $2.3 million, or 5 cents a share, in the prior-year period.

Restaurant sales in the first quarter totaled nearly $240 million, an increase of 7.8 percent from $222.5 million in the first quarter of 2016

The figure includes $37.7 million in sales from the 154 Burger King restaurants acquired between 2015 and 2017.

Comparable restaurant sales decreased 0.6 percent in the first quarter compared to a 5.7 percent increase in the prior-year period.

The company issued it earnings report before the opening of trading on Tuesday morning. Carrols’ stock price fell dropped 4 percent on the day.

Carrols owned and operated 788 Burger King restaurants at the end of the first quarter.

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Contact Reinhardt at ereinhardt@cnybj.com

Eric Reinhardt: