HomeMost PopularInvesting Carrols Restaurant Group, Inc. (TAST) Shows Resilience with Strong Q4...

Carrols Restaurant Group, Inc. (TAST) Shows Resilience with Strong Q4 Preliminary Results Carrols Restaurant Group, Inc. (TAST) Shows Resilience with Strong Q4 Preliminary Results

Actionable Trade Ideas

always free

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.

Zacks Investment Research

Image Source: Zacks Investment Research

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.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.