Carrols Restaurant (TAST) Reports Solid Q4 Preliminary Results
Carrols Restaurant Group, Inc. TAST reported fourth-quarter and full-year 2023 preliminary results. The company showcased robust growth in total restaurant sales and comparable restaurant sales for both Burger King and Popeyes during the period.
Q4 & 2023 Preliminary Results
TAST’s fourth-quarter 2023 preliminary total restaurant sales rose by 5.7% to $470.4 million compared with $445.1 million in the fourth quarter of 2022. Comparable restaurant sales for Burger King increased by 7.2%. Popeyes restaurants also experienced strong growth, with a 7.6% jump in comparable restaurant sales.
The company’s full-year 2023 preliminary total restaurant sales improved 8.4% to $1.88 billion compared with $1.73 billion in 2022. Comparable restaurant sales for Burger King grew by 9.3%. Popeyes restaurants saw a significant increase in comparable restaurant sales, up by 10.1%.
The robust 7.2% growth in comparable restaurant sales for Burger King during the fourth quarter of 2023 can be attributed to a 4.2% increase in average checks and a 2.9% rise in traffic.
Popeyes restaurants maintained strong performance with 7.6% growth in comparable restaurant sales during the fourth quarter. We anticipate ongoing momentum for both brands throughout 2024.
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Guidance Update
TAST currently forecasts fourth-quarter adjusted EBITDA to surpass or slightly exceed the upper limit of the initial range, which was set at $28 million to $32 million. The favorable outcome is partially attributed to lower-than-anticipated beef costs. For 2023, adjusted EBITDA is projected at the upper end or to slightly surpass the upper end of the previously stated range of $145-$149 million.
The company currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained 383.3% in the past year compared with the industry’s 2.8% growth.
Other Key Picks
Below, we present some other top-ranked stocks from the Zacks Retail-Wholesale sector.
Arcos Dorados Holdings Inc. ARCO flaunts a Zacks Rank #1 at present. It has a trailing four-quarter earnings surprise of 28.3%, on average. Shares of ARCO have jumped 47.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARCO’s 2024 sales and earnings per share (EPS) indicates 10.6% and 15.5% growth, respectively, from the year-ago levels.
Brinker International, Inc. EAT currently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 223.6%, on average. Shares of EAT have gained 9.4% in the past year.
The Zacks Consensus Estimate for EAT’s 2024 sales and EPS implies 5.1% and 26.2% growth, respectively, from the year-earlier numbers.
Wingstop Inc. WING presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 28.9%, on average. The stock has risen 68.4% in the past year.
The Zacks Consensus Estimate for WING’s 2024 sales and EPS suggests 15.8% and 18.2% growth, respectively, from the prior-year actuals.
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