Carrols Restaurant Group (TAST) Tops Q1 EPS by 10c, Beats on Revenues; Boosts FY18 Revenue Outlook

Carrols Restaurant Group (NASDAQ: TAST) reported Q1 EPS of ($0.08), $0.10 better than the analyst estimate of ($0.18). Revenue for the quarter came in at $271.6 million versus the consensus estimate of $263.9 million.

Highlights for first quarter of 2018 versus first quarter of 2017 include:

• Restaurant sales increased 13.2% to $271.6 million from $239.9 million in the first quarter of 2017 including contributions from 64 restaurants acquired in 2017;
• Comparable restaurant sales increased a solid 6.2% compared to a 0.6% decrease in the prior year quarter;
• Adjusted EBITDA(1) increased 36.3% to $18.9 million from $13.9 million in the prior year quarter;
• Net loss was $3.1 million, or $0.09 per diluted share, compared to net loss of $5.6 million, or $0.16 per diluted share, in the prior year quarter; and
• Adjusted net loss(1) was $2.8 million, or $0.08 per diluted share, compared to adjusted net loss of $4.8 million, or $0.14 per diluted share, in the prior year quarter.

Full Year 2018 Outlook

The Company is updating its guidance for 2018. As a reminder, while the Company may acquire additional BURGER KING® restaurants, this guidance does not include any impact from such potential acquisitions:

• Total restaurant sales are expected to be $1.15 billion to $1.17 billion (previously $1.14 billion to $1.17 billion), including a comparable restaurant sales increase of 3% to 5%;
• Commodity costs are now expected to increase 1% to 2% (previously 2% to 3%) including a 2% to 3% increase in beef costs (previously 3% to 5%);
• General and administrative expenses are expected to be $58 million to $60 million, excluding stock compensation expense and acquisition-related costs;
• Adjusted EBITDA is now expected to be $95 million to $102 million (previously $93 million to $100 million);
• An effective income tax rate of 0% to 5%.
• Capital expenditures before discretionary growth-related expenditures (i.e., new restaurant development and acquisitions) are expected to be $50 million to $60 million (previously $45 million to $50 million). In addition, capital expenditures for the construction of 10 to 15 new units and remaining costs from 2017 construction late in the year are expected to be $15 million to $25 million;
• Proceeds from sale/leasebacks are expected to be $10 million to $15 million; and
• The Company expects to close 20 to 25 existing restaurants, three of which were closed during the first quarter.

For earnings history and earnings-related data on Carrols Restaurant Group (TAST) click here.

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