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Bear of the Day: Carrols Restaurant Group (TAST)

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David Bartosiak
·3 min read
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Since this paradigm shift occurred, it’s been pretty easy to beat up restaurant stocks. Closing, partial opening, restrictions, all of this COVID-related action has really hurt the industry and the folks working in it. You probably don’t need me to point this out for you. Nonetheless, I’ve got to point out a Bear of the Day, not because I am personally very bearish on the stock, but because I want to highlight what has been happening as far as earnings estimates are concerned.

Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) Carrols Restaurant Group (TAST). Carrols Restaurant Group, Inc., through its subsidiaries, operates as a restaurant company in the United States. The company operates as a Burger King franchisee. As of December 29, 2019, it had, as franchisee, 1,036 Burger King restaurants located in 23 Northeastern, Midwestern, and Southeastern states; and 65 Popeyes restaurants in seven Southeastern states. The company was founded in 1960 and is headquartered in Syracuse, New York.

The Retail – Restaurants industry is in the Bottom 20% of our Zacks Industry Rank. You would think that the pandemic would help restaurants in the Fast Food industry. As far as earnings go, this has simply not been the case. Estimates continue to come down. Over the last week alone, analysts all over Wall Street have been cutting their earnings estimates. The bearish sentiment has dropped our current year Zacks Consensus Estimates from an 8-cent profit to an 8-cent loss. Next year’s number has shifted lower as well, going from a 14 cents EPS to 6 cents.

Carrols Restaurant Group, Inc. Price and Consensus

Carrols Restaurant Group, Inc. Price and Consensus
Carrols Restaurant Group, Inc. Price and Consensus

Carrols Restaurant Group, Inc. price-consensus-chart | Carrols Restaurant Group, Inc. Quote

Investors looking for other stocks within the same industry have a few names to chose from. There is one stock that enjoys the top ranking of Zacks Rank #1 (Strong Buy). That is Jack In The Box (JACK). Some Zacks Rank #2 (Buy) stocks in the industry include Arcos Dorados (ARCO) and Yum Brands (YUM).

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