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Carrols Restaurant Group reports Q2 net income amid pandemic
SYRACUSE — Carrols Restaurant Group (NASDAQ: TAST) reported net income of $7.8 million, or 13 cents a share, during the second quarter of 2020 as the pandemic continued. The figures compare with a net loss of $3.7 million, or 9 cents a share, during the same quarter in 2019, the firm said in its Aug. […]
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SYRACUSE — Carrols Restaurant Group (NASDAQ: TAST) reported net income of $7.8 million, or 13 cents a share, during the second quarter of 2020 as the pandemic continued.
The figures compare with a net loss of $3.7 million, or 9 cents a share, during the same quarter in 2019, the firm said in its Aug. 6 earnings report. Syracuse–based Carrols is the largest Burger King franchisee in the U.S.
The restaurant company’s adjusted net income was $9.6 million, or 16 cents a share, in this year’s second quarter, up from $4.6 million, or 8 cents, in the year-earlier quarter. That beat the consensus analyst estimate of 2 cents, according to Zacks Equity Research.
Carrols reported total restaurant revenue of $368.4 million in the second quarter compared to $365.7 million in the prior-year quarter. That also topped the Zacks consensus estimate.
Comparable restaurant sales for the company’s Burger King restaurants decreased 6.4 percent during this year’s second quarter, driven mainly by April and May results. June comparable restaurant sales for the Burger King eateries rose 2.5 percent, Carrols said.
Comparable restaurant sales for Carrols’ Popeyes restaurants increased 17.1 percent in the second quarter, including rising 13.3 percent in June.
Adjusted EBITDA increased to $38 million from $24.1 million in the year-ago quarter. EBITDA is short for earnings before interest, taxes, depreciation, and amortization.
“We believe our robust second quarter results are demonstrative of the agility and efficacy of our business model in providing customers great value and convenience through drive-thru, at-the-counter take-out, and delivery options along with our executional prowess in the face of a challenging operating environment,” Daniel Accordino, chairman and CEO of Carrols, said in the company’s earnings report. “Despite the ongoing pandemic, we were encouraged by the resiliency in our comparable restaurant sales during the second quarter as well as our ability to generate higher restaurant-level profitability and adjusted EBITDA in both dollar and margin terms compared to the year-ago period on similar revenue. This was accomplished by successfully managing food waste, optimizing labor, and effectively controlling other restaurant-level and corporate overhead expenses. Although volatility may persist, our underlying trend is undeniably strengthening and absent a major setback, we are hopeful that we can retain and possibly build further momentum in our overall performance.”
Accordino went on to say that in February, and pre-COVID-19 in the U.S., Carrols Restaurant Group expressed its intention to generate up to $25 million in free cash flow in 2020 and reduce its outstanding debt level by year-end.
“Through the second quarter, we have generated $22.9 million of free cash flow. We also now have in excess of $180 million in available liquidity (cash and borrowing availability under our revolving credit facility) which we believe gives us the ability to weather just about any adverse economic situation,” the CEO said.
For the remainder of 2020, the firm’s intention is to remain “nimble” in its operations, focus on improving profitability within its existing restaurant portfolio, manage capital expenditures, and continue to generate positive free cash flow to reduce its leverage, he added.
Longer term, the company currently expects to spend about $40 million to $50 million annually in capital expenditures over the next three years “mainly for maintenance,” with about 25 restaurant remodels per year and systemwide upgrades and initiatives.
Carrols is one of the largest restaurant franchisees in the U.S., and currently operates about 1,092 restaurants. The firm operates 1,027 Burger King restaurants and 65 Popeyes restaurants. It has owned Burger King restaurants since 1976.
Carrols’ stock price is back to nearly unchanged year to date after falling precipitously in late February and March amid the broader stock market selloff. The stock started the year at $7.05 and fell as low as 98 cents on March 18. Carrols shares closed at a price of $7.14 on Aug. 11.
Private-sector job creation continued to rebound in July
President Donald Trump continues to lead a dramatic rebound in the jobs economy as America added 1.46 million new private-sector positions in July. The retail, hospitality, and health-care sectors led the way. In other great news, 1.4 million fewer Americans were unemployed in the month than in June. The impact of the economic shutdown
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President Donald Trump continues to lead a dramatic rebound in the jobs economy as America added 1.46 million new private-sector positions in July. The retail, hospitality, and health-care sectors led the way.
In other great news, 1.4 million fewer Americans were unemployed in the month than in June. The impact of the economic shutdown driven by the coronavirus stymied our nation from having the greatest jobs economy in more than 60 years with fewer unemployed in February 2020 than at any time since early in 2001.
The rapid recovery is a testimony to President Trump keeping his eye on the ball and fighting the virus while also working every day to make certain that it didn’t permanently squash the hopes and dreams of Americans from all backgrounds and age groups.
Even more good news is that in the past three months since the economy began to reopen, between 9.3 million and 10.1 million people have found work — cutting the unemployment rate by 4.5 percent.
Rick Manning is president of Americans for Limited Government (ALG). The organization says it is a “non-partisan, nationwide network committed to advancing free-market reforms, private-property rights, and core American liberties.” This op-ed is drawn from a news release the ALG issued on Aug. 7.
The U.S. Pulls Back From Global Leadership
The United States has pulled back from global leadership since 2017, when President Donald Trump took office with a slogan of “America First.” We remain the world’s foremost military and economic power and a significant cultural and ideological force. But the international order has moved away from domination by great powers like the United States
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The United States has pulled back from global leadership since 2017, when President Donald Trump took office with a slogan of “America First.”
We remain the world’s foremost military and economic power and a significant cultural and ideological force. But the international order has moved away from domination by great powers like the United States and the former Soviet Union and toward a system with multiple centers of influence.
New actors are stepping forward to fill the vacuum: India, China, Russia, Iran, Brazil, and Germany as well as multinational alliances, the European Union, the Southern Common Market in South America, and the Commonwealth of Independent States in Eurasia.
We have responded militarily and diplomatically. We have bolstered our military capacity, maintaining our ability to intervene in hot spots such as the South China Sea, the Persian Gulf, and Africa. We have used diplomacy to bring rising countries into a U.S.-led international order, with mixed success.
Not surprisingly, Russia is working to undermine our efforts. As China plays a growing role on the world stage, U.S.-China relations have deteriorated amid tit-for-tat sanctions and consulate closings. Some in the Trump administration appear to want to permanently downgrade the relationship.
All these challenges confront the United States at a time when we are dealing with serious domestic problems, many of them heightened by the COVID-19 pandemic.
Income inequality is vast and growing. Even with businesses reopening, unemployment remains stubbornly high. We are entering the third major recession since 2001, economic downturns that decrease the wealth and erode the purchasing power of nearly all Americans. Confidence in social mobility has declined.
We need a huge investment in infrastructure: in transportation, water, sanitation, and communications technology and resources that are key to a productive and healthy life in the 21st century. Congress and the president talk a lot about infrastructure, but don’t follow through.
There is very little consensus within our government about how to revive the economy and create opportunity. Our political system is hamstrung by polarization and hyper-partisanship. Congress is gridlocked and has failed to provide robust oversight. The president, thus, has more latitude to act.
Trump’s bombastic style shows a penchant for conflict. He creates divisions and seems unable or unwilling to heal them.
He professes admiration for our adversaries, including the leaders of Russia, China, and North Korea. He criticizes the leadership of friendly nations such as Australia, Canada, Mexico, and Germany, leading allies to step back from cooperating with us.
Trump supports far-right politicians in Europe and endorses the United Kingdom’s decision to leave the EU. He relentlessly criticizes the U.N. and NATO and withdrew the U.S. from the World Health Organization, taking America out of the international mainstream.
So, the international situation is fraught with challenges, and America needs to reassert our role in the world. As the world’s most powerful country, now is the time for the U.S. to step up to the challenges.
Lee Hamilton, 89, is a senior advisor for the Indiana University (IU) Center on Representative Government, distinguished scholar at IU Hamilton Lugar School of Global and International Studies, and professor of practice at the IU O’Neill School of Public and Environmental Affairs. Hamilton, a Democrat, was a member of the U.S. House of Representatives for 34 years (1965-1999), representing a district in south central Indiana.

ABC Creative recently hired RACHEL KELLY as a project manager. As an MBA graduate of Le Moyne College, Kelly has years of experience within the marketing industry. Some of her previous positions were director of sales and marketing, marketing manager, marketing coordinator, and account executive at other companies. In her role as project manager, she
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ABC Creative recently hired RACHEL KELLY as a project manager. As an MBA graduate of Le Moyne College, Kelly has years of experience within the marketing industry. Some of her previous positions were director of sales and marketing, marketing manager, marketing coordinator, and account executive at other companies. In her role as project manager, she will manage and keep track of all the projects that come into ABC and also work closely with the agency’s creative director and account managers.

Five Star Bank, a unit of Financial Institutions, Inc., has hired KEVIN QUINN as senior VP and commercial banking executive, reporting to President and CEO Martin K. Birmingham. Quinn assumes responsibility for commercial and industrial lending, business banking, cash management, community development, and merchant services as well as leadership of Five Star Bank’s referral program,
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Five Star Bank, a unit of Financial Institutions, Inc., has hired KEVIN QUINN as senior VP and commercial banking executive, reporting to President and CEO Martin K. Birmingham. Quinn assumes responsibility for commercial and industrial lending, business banking, cash management, community development, and merchant services as well as leadership of Five Star Bank’s referral program, promoting relationship-building and business development between the bank and its insurance and wealth-management subsidiaries. Quinn has extensive experience leading commercial banking teams in upstate New York. He worked at HSBC Bank USA, NA in Buffalo for 15 years, most recently as head of commercial banking. Quinn began his career as an attorney with Jones Day in Cleveland, Ohio, and subsequently spent 10 years in commercial banking at M&T Bank. He is a graduate of the University of Notre Dame and earned a juris doctorate in law and an MBA in corporate finance from the University at Buffalo. Quinn will succeed Edward (Ted) Oexle, who retired from Five Star Bank as commercial and industrial lending executive and Buffalo regional president on Aug. 4

CenterState CEO has promoted JUHANNA ROGERS to its leadership team as its new VP for racial equity and social impact. In this new role, she will lead the newly formed racial equity and social impact portfolio within the regional economic-development organization. Rogers previously served as CenterState CEO’s director of community engagement and empowerment within its
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CenterState CEO has promoted JUHANNA ROGERS to its leadership team as its new VP for racial equity and social impact. In this new role, she will lead the newly formed racial equity and social impact portfolio within the regional economic-development organization. Rogers previously served as CenterState CEO’s director of community engagement and empowerment within its economic inclusion portfolio, developing communication and engagement activities and strategies that drive change in Syracuse. Specifically, Rogers will deliver diversity, equity, and inclusion (DEI) training for CenterState CEO staff and will develop DEI organizational metrics and processes to ensure its DEI goals are being met. She will also lead the development and implementation of CenterState CEO’s DEI services, including “enhanced” partner/vendor engagement, sales, delivery and evaluation, and the development and deployment of new DEI training and consulting services to be offered by the organization to the business community. While this emerges, Rogers will continue to lead the community engagement and empowerment work associated with the organization’s JPMorgan Chase (JPMC) AdvancingCities grant, as well as CenterState CEO’s participation in the “Syracuse Surge” program, including planning and executing Surge tech and culture summits, and managing the Surge fellow program. Additionally, Rogers will lead CenterState CEO’s “Generation Next” and “Tech and Culture” initiatives. Her work to date includes spearheading the “Generation Next” initiative, co-leading the JPMC AdvancingCities application process, and supporting internal talent attraction and recruitment efforts at CenterState CEO to yield a more diverse organization. Prior to working at CenterState CEO, Rogers was director for health services at Syracuse Community Connections. She earned her undergraduate degree in integrative arts from Penn State University, a master’s degree in higher education student affairs from Indiana University, and a doctoral degree from Indiana as well.

Herkimer County Community College has appointed HANNAH R. STUBLEY as a technical assistant for international programs. She graduated from Herkimer College with an associate degree in social science and went on to earn a bachelor’s degree in women’s studies from Hamilton College, in 2012, and a master’s degree in women’s, gender, & sexuality studies from
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Herkimer County Community College has appointed HANNAH R. STUBLEY as a technical assistant for international programs. She graduated from Herkimer College with an associate degree in social science and went on to earn a bachelor’s degree in women’s studies from Hamilton College, in 2012, and a master’s degree in women’s, gender, & sexuality studies from the University at Albany in 2015. Stubley previously worked in the college’s academic support center as a career and technical education (CTE) success coach, where she was responsible for enhancing the academic success of CTE students by providing individual and group support to students. As a technical assistant, she will assist Dr. Robin Riecker, the college’s associate dean of academic affairs for humanities/social science and the coordinator of international programming, with processing applications for international students and serving as a designated school official. Stubley will be responsible for advising F-1 students in areas pertaining to the acquisition and maintenance of their non-immigrant student status in the U.S., and she will maintain records, databases, and reports necessary for compliance with immigration regulations, including the Student & Exchange Visitor Information System and all compliance records.

MELISSA SHERMAN, a certified family nurse practitioner, has joined the medical staff of Finger Lakes Health’s Geneva General Hospital in its hospitalist department. Sherman received her master’s degree in nursing from Upstate Medical University. She earned her bachelor’s degree in nursing from Keuka College and her associate degree in nursing from Finger Lakes Community College.
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MELISSA SHERMAN, a certified family nurse practitioner, has joined the medical staff of Finger Lakes Health’s Geneva General Hospital in its hospitalist department. Sherman received her master’s degree in nursing from Upstate Medical University. She earned her bachelor’s degree in nursing from Keuka College and her associate degree in nursing from Finger Lakes Community College. Sherman received the Advanced Nursing Education Workforce (ANEW) Scholarship, with the mission to practice in rural and underserved communities, from Upstate Medical University.

TAEWAN KIM, M.D., an experienced bariatric surgeon, has joined Oswego Health at the Center for Weight Loss & Surgery. Board-certified by the American Board of Surgery, he earned his medical degree and completed his general-surgery residency from SUNY Upstate Medical University. In addition, Kim completed his fellowship of minimally invasive surgery Upstate Medical. He has
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TAEWAN KIM, M.D., an experienced bariatric surgeon, has joined Oswego Health at the Center for Weight Loss & Surgery. Board-certified by the American Board of Surgery, he earned his medical degree and completed his general-surgery residency from SUNY Upstate Medical University. In addition, Kim completed his fellowship of minimally invasive surgery Upstate Medical. He has extensive surgical experience throughout Central New York, including serving as an attending surgeon as well as an assistant professor of surgery at Upstate Medical University. In addition, he was an attending surgeon at Veteran’s Administration Hospital as well as at Crouse Hospital. Kim has performed more than 2,000 weight-loss procedures.

JOSEPH G. FARRELL has joined Mackenzie Hughes LLP as a partner in the firm’s litigation department and will concentrate his legal practice on medical malpractice defense. Farrell has been practicing law for more than 10 years, defending physicians, midlevel providers, and facilities in medical malpractice actions. He has represented medical providers in matters involving the
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JOSEPH G. FARRELL has joined Mackenzie Hughes LLP as a partner in the firm’s litigation department and will concentrate his legal practice on medical malpractice defense. Farrell has been practicing law for more than 10 years, defending physicians, midlevel providers, and facilities in medical malpractice actions. He has represented medical providers in matters involving the New York State Office of Professional Medical Conduct and the New York State Office of Professional Development. Farrell holds a juris doctorate from the Syracuse University College of Law and a bachelor’s degree from Syracuse University.
BRANDAN RAY has also been hired by Mackenzie Hughes as an associate attorney in the business department with his practice focused on business formation and governance, private investment transactions, and intellectual property. Admitted in the New York State Bar and Massachusetts Bar Associations, Ray has experience consulting with clients in business formations and governance along with private investment transactions and intellectual property. He holds a juris doctorate from the Boston University School of Law and a bachelor’s degree from Boston College.
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.