Carrols Restaurant Group (TAST) Reports In-Line Q3 EPS, Slight Miss on Revenues; Offers FY18 Revenue Outlook

Carrols Restaurant Group (NASDAQ: TAST) reported Q3 EPS of $0.09, in-line with the analyst estimate of $0.09. Revenue for the quarter came in at $296.9 million versus the consensus estimate of $297.44 million.

• Restaurant sales increased 4.1% to $296.9 million from $285.2 million in the third quarter of 2017;
• Comparable restaurant sales increased 1.6% (inclusive of an approximate 0.5% negative impact from Hurricane Florence) compared to a 7.5% increase in the prior year quarter;
• Adjusted EBITDA(1) increased 8.7% to $26.3 million from $24.2 million in the prior year quarter;
• Net income increased 29.2% to $3.6 million, or $0.08 per diluted share, from $2.8 million, or $0.06 per diluted share, in the prior year quarter; and
• Adjusted net income(1) increased 15.0% to $4.0 million, or $0.09 per diluted share, from $3.5 million, or $0.08 per diluted share, in the prior year quarter.
• Adjusted EBITDA, Restaurant-level EBITDA and Adjusted net income are non-GAAP financial measures. Refer to the definitions and reconciliation of these measures to net income or to income from operations in the tables at the end of this release.

Daniel T. Accordino, the Company's Chief Executive Officer said, “We view our 1.6% increase in third quarter comparable restaurant sales positively considering the approximate 0.5% negative impact from Hurricane Florence and the formidable 7.5% comparison from the prior year. 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% and Adjusted net income growth of 15.0%, respectively, outpaced top line growth of 4.1%.”

Accordino added, “We continue to expand Carrols through both opportunistic acquisitions and organic growth. So far this year, we have purchased 44 BURGER KING® restaurants and opened six new locations. We are now working diligently to instill operational best practices into our newest additions to our portfolio while also continuing to evaluate opportunities for future acquisitions and development.”

GUIDANCE:

Carrols Restaurant Group sees FY2018 revenue of $1.17-1.18 billion, versus the consensus of $1.18 billion.

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

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