SYRACUSE — Carrols Restaurant Group, Inc. (NASDAQ: TAST) on Nov. 6 reported a 29 percent profit increase during its third quarter ending Sept. 30. The reported net income of $3.6 million, or 8 cents a share, was up from $2.8 million, or 6 cents, in the prior-year quarter, Carrols said in the Nov. 6 earnings […]
SYRACUSE — Carrols Restaurant Group, Inc. (NASDAQ: TAST) on Nov. 6 reported a 29 percent profit increase during its third quarter ending Sept. 30.
The reported net income of $3.6 million, or 8 cents a share, was up from $2.8 million, or 6 cents, in the prior-year quarter, Carrols said in the Nov. 6 earnings report.
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.
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.
Carrols posted adjusted net income of $4 million, or 9 cents per share, in the third quarter, up 15 percent from $3.5 million, or 8 cents, in the year-ago period.
Updated guidance
Carrols also updated its outlook for the remainder of 2018
The firm expects total restaurant sales in a range between $1.17 billion and $1.18 billion, including a comparable-restaurant sales increase of 3.2 percent to 3.8 percent with an increase of 0 percent to 2 percent in the fourth quarter, per its earnings report.
It previously expected a range between $1.16 billion and $1.18 billion and a comparable restaurant sales increase of 3 percent to 4 percent.
Carrols also expects a decline in commodity costs of about 1 percent, including a 3 percent to 4 percent decrease in beef costs. It previously expected commodity costs “to be flat” with a 1 percent to 2 percent decrease in beef costs.
The firm also expects to close 10 to 15 existing restaurants, of which nine have been closed through the end of the third quarter. Its previous expectation was to close between 15 and 20 existing stores.
