7.37 0.00 (0.00%)
After hours: 4:00PM EST
|Bid||7.37 x 3100|
|Ask||7.38 x 2900|
|Day's Range||7.13 - 7.71|
|52 Week Range||6.23 - 11.89|
|Beta (3Y Monthly)||0.50|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 7, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||12.00|
Carrols Restaurant (TAST) delivered earnings and revenue surprises of -190.00% and 0.16%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Carrols Restaurant Group, Inc. today reported financial results for the third quarter ended September 29, 2019.
Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the […]
November opened with a bang in the markets as several points of good news boosted investor morale.To start with, the Federal Reserve, at its FOMC meeting, did exactly what everyone expected. It cut rates by 0.25%, and indicated that no further cuts are in the offing. The jobs report on Friday, while not a blockbuster, beat a gloomy expectation by a wide margin, showing 128,000 new jobs in October against a forecast of just 90,000. In addition, revisions to August and September added another 95,000 new jobs. And to top it all off, the S&P 500 hit another record high on November 1, reaching 3,066.With markets looking good, it’s no wonder that the major investment firms are making ‘Buy’ recommendations. Deutsche Bank, Germany’s largest financial services bank, maintains a highly reputable staff of investment analysts and experts, 337 strong, monitor the markets and advise investors. Their collective success rate of 60%, and their 8.4% average return on recommendations, has ranked Deutsche Bank 8 out of 50 in the TipRanks database of top performing research firms.We’ve dipped into that database, using the Best Stocks to Buy tool, to find several stocks that Deutsche Bank has recommended as we start the fourth quarter.Lyft (LYFT)Uber’s main competitor, Lyft operates across the US and Canada. Through its popular mobile app, Lyft markets a network of on-demand car rides, scooter rental, and bicycle sharing. The company controls a 28% market share in this niche, making it the second largest ride-sharing company in the US. Lyft brought in over $2.16 billion in revenue last year, but, also like Uber, it operates at a net loss.In its Q3 earnings report last Wednesday, Lyft revealed the extent of that net loss. The results were somewhat mixed, but on whole better than expected. The EPS loss of $1.57 was 5% better than the forecast $1.66, and quarterly revenues were also up, at $955.6 million against the estimate of $915 million. The company boosted its full-year revenue guidance, too, projecting 2019 revenues of $3.57 billion, a significant increase from the previous estimate. The full-year guidance was substantially boosted by a 4% bump in the Q4 revenue estimates, from $943 million to $980 million.On the negative side of the ledger, company losses of $43.5 million during Q3 were 85% higher than the same quarter last year. Lyft’s net loss has greatly increased during 2019, although losses have lessened since Q1. Increasing revenues have eased investor concerns on this issue, although it remains an asterisk on LYFT.Deutsche Bank’s 5-star analyst Lloyd Walmsley sees reason for optimism in the earnings report. He noted, “Strong results combined with a faster than expected path to EBITDA profitability, which could come even sooner than recent guidance (we now model 3Q 2021), reaffirms our view that the market is underappreciating the earnings power at Lyft… we think Lyft is well positioned to show continued ramp towards profitability.”Walmsley rates LYFT stock a Buy along with a $70 price target, which suggests an impressive 70% upside to the stock. (To watch Walmsley's track record, click here)LYFT’s overall rating, a Strong Buy on the analyst consensus, is based on 22 Buys given in the last three months. Dissenting opinions include 7 Holds; the last Sell rating on this stock was given 7 months ago. Shares are selling for $42.98, and the average share price is $70. As noted, this gives an upside potential of 70%. (See Lyft stock analysis on TipRanks)Carrols Restaurant Group (TAST)It’s not a household name, so you probably haven’t heard of Carrols Restaurant. But there’s a good chance you’ve eaten at one of their locations – the company is the world’s largest owner and operator of Burger King franchises. Starting in 1976, Carrols began acquiring Burger King locations, and converting its eponymous store to the burger franchise. The company now owns over 1000 Burger Kings in 23 US states. In addition, Carrols owns 55 Popeyes chicken locations.Tomorrow, Carrols is scheduled to report Q3 earnings. Wall Street is looking for an EPS of 10 cents per share, an 11% increase from last year’s Q3 EPS of 9 cents. A 35% gain in revenue, to $401.7 million, is expected to support the EPS gain. To put the quarterly report in some perspective, TAST has reported steady gains in annual revenue since 2010, from $348 million to last year’s $1.18 billion. Burgers might not be a necessity of life, but they are both popular and profitable at scale.Deutsche Bank analyst Brian Mullan initiated his firm’s coverage of TAST with a Buy rating and a $9 price target. In his analysis, the analyst points out the stock’s valuation, saying, “Following relatively disappointing 2Q19 earnings results last month, we see a dislocation in shares that should correct over the balance of the year simply by assuming that 2H19 SSS can improve (as guided) and that restaurant level margin declines can get "less bad" exiting the year. Should this occur, we believe this "bridges the gap" to a better 2020E and beyond story where Cambridge synergies, ROFR acquisition opportunities, and a ramp in new unit development will all come into greater focus for investors. As such, we believe that the risk-reward for TAST is favorable." (To watch Mullan's track record, click here)TAST is not widely covered by the Street’s analyst corps; among those who do cover the stock, however, the consensus is a Strong Buy. TAST shows an average price target of $12.33, implying room for a robust 62% upside from the current trading value of $7.35. This stock is bargain priced, and plenty of room for growth. (See Carrols Restaurant stock analysis)LHC Group (LHCG)Our third bullish call from Deutsche Bank is definitely not a well-known name – but it is a stock worth watching, with plenty of long-term potential. As the population ages, home health and senior care will become an ever-greater necessity, and the companies that offer these services will stand to profit. LHC, based in Louisiana and offering senior health services in 35 states plus DC, is one of these. The company is a high-quality health provider, offering a combination of home health, community services, facility care, and hospice. Its current operations reach 60% of the US senior population.The expanding customer base and high demand for services has pushed LHCG up. The stock has strongly outperformed the general markets, gaining over 31% year-to-date, against an S&P 500 gain of 22%. Looking ahead to the next earnings report, analysts expect that LHC Group will show $1.08 EPS, 13% higher than the year-ago quarter. Revenues are expected to rise 5% year-over-year, to $532.24 million.The firm foundation gives this company a strong base to move forward, and that is what has attracted Deutsche Bank to the stock. In an initiation report dated September 14, analyst Justin Bowers says it bluntly: “LHC Group’s organic growth rates have outperformed the industry by 3% per year on average over the last five years and we expect this to continue given the company’s differentiated joint venture model. The company's seasoned management team has a track record of navigating payment and regulatory reform…” Bowers’ $145 price target indicates confidence in the stock; he sees room for a 17% upside. (To watch Bowers' track record, click here)The optimistic Deutsche Bank report on LHCG is in line with other analyst views on the stock. The Strong Buy consensus is based on 7 recent ratings, including 6 buys and only 1 Hold. Shares sell for $123, so it’s not cheap, but the average stock-price forecast of $134 suggests a 9% upside. As analyst Bowers said in the title of his initiation report, "this stock is a marathon, not a sprint." (See LHC Group stock analysis)
Carrols Restaurant (TAST) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In a good economy, restaurant stocks are usually good bets. And there are some in this sector that are doing very well and are worth considering. I wrote about one in particular last week.But a rising tide doesn't lift all boats. And some restaurant stocks are having a tough go of it now.Consumer spending seems to be slowing, and a global slowdown -- if not recession -- is looming. Ultimately, I think the U.S.consumer is going to be fine, a distinction I'm careful to make for Growth Investor. But nonetheless, these stocks are going to feel it as consumers become choosier about where they spend their money when they go out.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Penny Stocks to Buy These seven restaurant stocks to leave on your plate are all rated "D" or "F" in my Portfolio Grader -- and that's during relatively good times. If things get worse or even stay the same, they're going to see more trouble from healthier competition and choosier diners. Restaurant Stocks to Buy: Fiesta Restaurant Group (FRGI)Source: Philip Lange / Shutterstock.com Fiesta Restaurant Group (NASDAQ:FRGI) is a Texas-based chain of Caribbean-inspired restaurants -- Pollo Tropical and Taco Cabana -- and it is very popular in southern Florida where it began, as well as Texas.But the problem is, it is having a tough time expanding. It recently announced it was shuttering its operations in Atlanta, closing all nine Pollo Tropical locations in the area.This is never a good sign. It signals that the company is either having a tough time competing against established restaurants in the area or that management didn't have the right go-to-market strategy. Or both.Either way, this isn't helping the company. The stock is off 70% in the past year, and just reported another quarter of weak earnings. I've been warning about this stock for a while now. Potbelly (PBPB)Source: Ken Wolter / Shutterstock.com Potbelly (NASDAQ:PBPB) started in a Chicago neighborhood in 1977, when a husband and wife started selling sandwiches to customers of their antique shop.In the 1990s an entrepreneur saw an opportunity. He bought the shop and started a chain of restaurants to carry the idea to the rest of the U.S. -- and then beyond. Now PBPB has nearly 475 stores in the U.S. as well as in Canada, the United Arab Emirates, United Kingdom, Kuwait and India.The problem is, it likely has grown too fast, a problem with many chains. And no big company has come in to buy it out. Plus it has significant competition in the fresh hot sandwich market, including the biggest food chain in the world, Subway. * 7 Dividend Stocks to Buy (With Brands You Can Find In Your Kitchen) Since 2017, PBPB stock has been in decline and that decline sped up in 2019 as earnings and revenue have disappointed investors for a year. All in all, it's not a business model that would tempt me; I see much better options out there. The stock is off 72% in the past year and the chart isn't looking like a comeback is in sight. Carrols Restaurant Group (TAST)Source: Savvapanf Photo / Shutterstock.com Carrols Restaurant Group (NASDAQ:TAST) is an interesting restaurant company. It doesn't actually have a brand. It owns franchises of Burger King and Popeyes restaurants.Currently, it owns 1,010 Burger Kings and 55 Popeyes in 23 states. It brings in about $1.3 billion in revenue every year, so it's a big organization. But Burger King and Popeyes are owned by Restaurant Brands International (NYSE:QSR). TAST simply buys franchises and runs them.This can be good business in a strong economy. In today's economy, it's best to be QSR since it simply receives fees from its franchises and isn't exposed to the market conditions like rising worker costs and lower sales.The stock is off 52% in the past year, and doesn't look like it's headed up anytime soon. BJ's Restaurants (BJRI)Source: David Tonelson / Shutterstock.com BJ's Restaurants (NASDAQ:BJRI) is kind of an American-style pub experience. That means it's everything on a bigger scale. The restaurants -- BJ's Restaurant & Brewhouse, BJ's Pizza and Grill and BJ's Grill -- are big as are their selections of beers and fast-casual dining options.Its Southern California spin on the brew house experience was its unique selling point, but there are many other competitors in this space that are local, regional and national competitors.And that is starting to show up in BJRI's numbers. The third quarter was tough for a lot of restaurants, but BJRI doesn't have the cushion that others do. The stock is off 50% in the past year, and growth as well as same-store sales will be challenging. * 7 Beverage Stocks to Buy Now Again, you want to see a business that's hard to duplicate (or beat). And sometimes, you have to invest early in a theme to find them. I'm seeing that opportunity in another corner of the market that may surprise you. Chanticleer Holdings (BURG)Source: QualityHD / Shutterstock.com Chanticleer Holdings (NASDAQ:BURG) has owned and operated franchise restaurants since its inception in 2005.Perhaps its best-known brand is Hooters. It has also franchised some boutique burger restaurants along the way, like BGR, Little Big Burger and American Burger Co.The trouble is, Hooters isn't exactly the kind of growth brand it was a decade or two ago. It may work in some markets -- and BURG also has international franchises -- but it's not exactly a concept that draws attention any longer. And upscale burger joints have flooded the market.Even more telling regarding its prospects is the fact that BURG recently did a reverse merger with a privately held biotech firm that specializes in cancer research.That's never a good sign.The stock is off 68% in the past year and it's likely that this odd pivot is its last gasp, rather than a new beginning. Noodles & Company (NDLS)Source: Ken Wolter / Shutterstock.com Noodles & Company (NASDAQ:NDLS) is a national chain that started with a menu focused on noodle dishes from around the world. Who doesn't like noodles, right?When they first opened they were very popular, especially with finicky kids. But then the age of gluten-free eating hit and NDLS was a focused gluten purveyor. That became a challenge.Fortunately, the chain has pivoted to veggie noodles and now, cauliflower noodles.Its Q2 earnings and revenue numbers were solid. But it really doesn't have a real growth market left, so it's in survival mode. Same-store sales were in line with expectations, but as we enter a slowing economy, it's going to be tough to keep the growth going. * 10 Hot Stocks Staging Huge Reversals NDLS stock is off 61% in the past year and this knife is still falling. Sometimes, even if you see decent fundamentals, you have to stay away when the trend is against you. Momentum is a must for the stocks I'd recommend for Growth Investor. Domino's Pizza (DPZ)Source: Ken Wolter / Shutterstock.com Domino's Pizza (NYSE:DPZ) is certainly one of the most famous fast food brands out there. And it is another company that has seen many years of dominance in its sector.But again, the gluten-free trends and healthy eating styles that pervade the market now are having an effect on business. Plus, DPZ is constantly challenged by price wars from national competitors and significant local competition in most markets.And it's difficult for DPZ to pivot. This makes it a challenge for prospective franchisees. They see healthy alternative fast-casual restaurants and a pizza chain known more for quick delivery than quality products.This is not the pizza of Gen X or Gen Z. And while it may stay top of the pizza chain heap, that heap is getting smaller.DPZ stock is stuck in lower highs and lower lows. It's off about 0.5% in the past 12 months, but it's still carrying a trailing price-to-earnings ratio around 28.At the end of the day, restaurants are a low-margin business. That makes it very tough for restaurant stocks to deliver (so to speak) the earnings as well as operating margins I'm looking for.That's why I'm looking elsewhere for growth plays. One of my favorites is a tech trend that is already bigger and deeper than most people realize. "The Mother of All Technologies"Up until now, technologies have certainly made our lives easier and more efficient … but with a lot of room for human error. People trip over cords, spill their coffee and get tired.Artificial intelligence does not.If that sounds futuristic, well then, the future is already here. If you use apps like Netflix (NASDAQ:NFLX), TurboTax, QuickBooks, Zillow (NASDAQ:Z) or even an email spam filter, then AI is already helping your day run more smoothly. And as scientists find even more applications for artificial intelligence -- from healthcare to retail to self-driving cars -- it's incredible to imagine how much data will be involved.To create AI programs in the first place, tech companies must collect vast amounts of data on human decisions. Data is what powers every AI system.So any one company that can help with customers' data issues is the one company that's most worth investing in.You don't need to be an expert to take part. I'll tell you everything you need to know, as well as my "buy" recommendation, in Growth Investor. My No. 1 stock for the AI trend is still under my buy limit price -- so you'll want to sign up now. Get in while it's still cheap.Click here for a free briefing on this groundbreaking innovation.Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system -- with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the "Master Key" to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post 7 Restaurant Stocks to Leave on Your Plate appeared first on InvestorPlace.
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Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Carrols Restaurant Group, Inc. New York, June 14, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Carrols Restaurant Group, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Carrols Restaurant Group, Inc. (“Carrols” or the “Company”) (TAST) announced that on June 11, 2019 it completed the acquisition of 13 BURGER KING® restaurants in the Baltimore, Maryland market. Daniel T. Accordino, the Company's Chief Executive Officer, said, “We are pleased to complete this transaction which adds to our existing presence in the attractive mid-Atlantic region. It is the largest BURGER KING® franchisee in the United States operating 1,023 BURGER KING® restaurants and also operates 55 POPEYES® restaurants.