Carrols Restaurant Stock Slides After Q2 Earnings Miss On Inflationary Challenges

  • Carrols Restaurant Group Inc TAST reported second-quarter FY21 restaurant revenue growth of 15% year-on-year, to $424.54 million, missing the analyst consensus of $426.80 million.
  • Comparable restaurant sales for Burger King restaurants increased 12.6% Y/Y, and Popeyes restaurants decreased 5.3%.
  • Operating expense rose 18% Y/Y to $418.6 million.
  • The operating margin was 1.4%, and operating income for the quarter fell 58.7% to $5.9 million.
  • The company held $56.2 million in cash and equivalents as of July 4, 2021.
  • Net cash provided by operating activities amounted to $19.6 million with a free cash flow of $4.2 million.
  • Adjusted EBITDA of $29.3 million fell 22.9% Y/Y, and adjusted Restaurant-Level EBITDA margin declined 340 basis points to 11.3%.
  • Adjusted EPS of $(0.00) missed the analyst consensus of $0.09.
  • "Inflationary challenges weighed on our Adjusted Restaurant-Level EBITDA margins during the second quarter as we faced unprecedented cost pressures across nearly all inputs in May and June as the economy shifted into high gear in a very short time period," said CEO Daniel T. Accordino.
  • The company's Board declared a $25 million special cash dividend amounting to $0.41 per share of common stock, payable on October 5, 2021, to shareholders of record on August 25, 2021.
  • It also extended its 2019 stock repurchase program, which has $11 million of its original $25 million in capacity remaining, to expire August 2, 2023.
  • Price Action: TAST shares are trading lower by 3.29% at $5.00 in premarket on the last check Thursday.

Posted In: BriefsEarningsNewsMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.