Carrols Restaurant Group, Inc. TAST has reported robust fourth-quarter and full-year 2023 preliminary results, showcasing impressive 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 surged by 5.7% to $470.4 million compared with $445.1 million in the fourth quarter of 2022. Notably, Burger King witnessed a commendable 7.2% increase in comparable restaurant sales. Moreover, Popeyes restaurants also demonstrated a strong performance, recording a significant 7.6% growth in comparable restaurant sales.
The company’s full-year 2023 preliminary total restaurant sales improved by 8.4% to $1.88 billion compared with $1.73 billion in 2022. Furthermore, Burger King’s comparable restaurant sales grew by 9.3%, while Popeyes restaurants saw an impressive increase of 10.1% in comparable restaurant sales.
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 also maintained strong performance with 7.6% growth in comparable restaurant sales during the fourth quarter. Anticipations are high for ongoing momentum for both brands throughout 2024.
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Guidance Update
TAST currently forecasts that fourth-quarter adjusted EBITDA will surpass or slightly exceed the initial range, which was set at $28 million to $32 million. This favorable outcome is partially attributed to lower-than-anticipated beef costs. For 2023, adjusted EBITDA is projected to be at the upper end or slightly surpass the upper end of the previously stated range of $145-$149 million.
The company currently holds a Zacks Rank #1 (Strong Buy). Shares of the company have gained 383.3% in the past year, outperforming the industry’s 2.8% growth.
Other Key Picks
Here are some other top-ranked stocks from the Zacks Retail-Wholesale sector:
Arcos Dorados Holdings Inc. ARCO currently holds a Zacks Rank #1 and has a trailing four-quarter earnings surprise of 28.3%, on average. Shares of ARCO have risen by 47.5% in the past year. 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 presently carries a Zacks Rank #2 (Buy) and 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 and has a trailing four-quarter earnings surprise of 28.9%, on average. The stock has risen by 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.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3%, and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Brinker International, Inc. (EAT) : Free Stock Analysis Report
Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report
Arcos Dorados Holdings Inc. (ARCO) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
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