Carrols Restaurant Group, Inc. (Nasdaq: TAST) today reported preliminary sales results for the fourth quarter and full year 2019. The Company also announced that it would host a fireside chat at the 22nd Annual ICR Conference tomorrow morning at 10:00 AM ET.
For the Fourth Quarter of 2019 versus the Fourth Quarter of 2018:
- Total restaurant sales increased 29.2% to $397.6 million (including $73.6 million in restaurant sales from the restaurants acquired in the Cambridge acquisition completed in the second quarter of 2019) from $307.8 million in the prior year quarter;
- Comparable restaurant sales for the Company’s Burger King restaurants increased 2.0% compared to a 2.7% increase in the prior year quarter, or an increase of 4.7% on a two-year stacked basis;
- Comparable restaurant sales for the Company’s Popeyes restaurants increased 21.2% compared to same-store sales under previous ownership in the prior year quarter; and
- Promotions and discounts were 19.0% of the Company’s comparable Burger King restaurant sales compared to 26.6% in the prior year quarter.
For the Full Year 2019 versus the Full Year 2018:
- Total restaurant sales increased 23.2% to $1,452.5 million (including $193.1 million in restaurant sales from the Cambridge acquisition completed in the second quarter of 2019) from $1,179.3 million in the prior year;
- Comparable restaurant sales for the Company’s Burger King restaurants increased 2.2% compared to a 3.8% increase in the prior year, or an increase of 6.0% on a two-year stacked basis; and
- Comparable restaurant sales for the Company’s Popeyes restaurants increased 11.9% compared to same-store sales under previous ownership in the prior year.
Daniel T. Accordino, Chairman and Chief Executive Officer of Carrols, commented, “Although comparable sales decelerated in November and December versus October, we are encouraged by the continued strength of the Impossible Whopper, the Popeyes Chicken Sandwich, and the muted discount environment throughout the fourth quarter as compared to the comparable prior year period. We lapped the highest level of 2018 discounting during November and December, which resulted in more modest comparable sales growth in the fourth quarter of 2019 than in the prior year quarter.”
Accordino continued, “Looking ahead, we are optimistic about the compelling 2020 marketing initiatives at both Burger King and Popeyes and expect to realize margin improvement at the acquired Cambridge restaurants throughout this year as we complete the integration of these restaurants and fully implement our operational best practices, improve controls over sales, and optimize food and labor expenditures. We believe that Carrols is well-positioned to benefit from two world-class brands with significant scale advantages and a supportive franchisor partner as we execute on growth opportunities across multiple attractive markets.”
Carrols is one of largest restaurant franchisees in the United States, and currently operates 1,100 restaurants. It is the largest BURGER KING® franchisee in the United States currently operating 1,035 BURGER KING® restaurants and also operating 65 POPEYES® restaurants. It has operated BURGER KING® restaurants since 1976.