Carrols Restaurant Group, Inc. Reports Preliminary Sales Results for the Fourth Quarter and Full Year 2020
January 11 2021 - 6:30AM
Carrols Restaurant Group, Inc. (“Carrols” or the “Company”)
(Nasdaq: TAST) today reported preliminary sales results for the
fourth quarter and full year 2020 ended January 3, 2021.
Preliminary highlights for the 14-Week
Fourth Quarter of 2020 versus the 13-Week Fourth Quarter of
2019
- Total restaurant sales increased 5.8% to $420.5 million
compared to $397.6 million in the prior year quarter; the Company
generated $28.4 million in restaurant sales during the 14th
week;
- Comparable restaurant sales for the Company's Burger King®
restaurants decreased 0.9%; and
- Comparable restaurant sales for the Company’s Popeyes®
restaurants decreased 12.9%, after a gain of 21.2% in the prior
year quarter.
Preliminary highlights for the 53-Week
Full Year of 2020 versus the 52-Week Full Year of 2019
- Total restaurant sales increased 6.5% to $1,547.5 million
compared to $1,452.5 million in the prior year; the Company
generated $28.4 million in restaurant sales during the 53rd
week;
- Comparable restaurant sales for the Company's Burger King®
restaurants decreased 2.8%; and
- Comparable restaurant sales for the Company’s Popeyes®
restaurants decreased 0.1%.
Management Commentary
Daniel T. Accordino, Chairman and Chief
Executive Officer of Carrols, commented, “We continued to
demonstrate resiliency in the face of the challenging operating
environment during the fourth quarter. Our business model is
well-suited to customers seeking great value and convenience, which
we are providing to them through our drive-thru, at-the-counter for
take-out, and delivery channels. Notably, delivery rose to 3.4% of
total Burger King restaurant sales during the fourth quarter from
2.9% in the third quarter as more customers sought out this
enhanced level of convenience.”
Accordino concluded, “Last week, we finalized
our revised Burger King area development agreement with our
franchisor on the terms generally outlined in our third quarter
earnings release. With this agreement, our remodel and new
restaurant build commitments have been significantly reduced. Also,
while we terminated our right-of-first-refusal provision in the
prior agreement, we are pre-approved to acquire up to 500 Burger
King restaurants in territories where we currently operate. Under
this new arrangement, we believe we will have the flexibility to
grow our business organically and through acquisitions in a manner
that will best optimize our profit growth potential while
generating consistent and enhanced free cash flow and keeping our
leverage in check.”
During the fourth quarter of 2020, the Company
utilized $10.0 million of cash to repurchase 1.5 million shares of
its common stock for an average price of $6.52 per share. We
currently have $11.0 million remaining for repurchases under our
stock repurchase program.
About the Company
Carrols is one of the largest restaurant
franchisees in the United States, and currently operates
approximately 1,074 restaurants. It is the largest BURGER KING®
franchisee in the United States currently operating 1,009 BURGER
KING® restaurants and also operating 65 POPEYES® restaurants. It
has operated BURGER KING® restaurants since 1976. For more
information on Carrols, please visit the company's website at
www.carrols.com.
Forward-Looking Statements
Except for the historical information contained
in this news release, the matters addressed are forward-looking
statements. Forward-looking statements, written, oral or otherwise
made, represent Carrols' expectation or belief concerning future
events. Without limiting the foregoing, these statements are often
identified by the words "may", "might", "believes", "thinks",
"anticipates", "plans", "expects", "intends" or similar
expressions. In addition, expressions of our strategies,
intentions, plans or guidance are also forward-looking statements.
Such statements reflect management's current views with respect to
future events and are subject to risks and uncertainties, both
known and unknown. You are cautioned not to place undue reliance on
these forward-looking statements as there are important factors
that could cause actual results to differ materially from those in
forward-looking statements, many of which are beyond our control.
Investors are referred to the full discussion of risks and
uncertainties, including the impact of COVID-19 on Carrols’
business, as included in Carrols' filings with the Securities and
Exchange Commission.
Investor Relations:Raphael
Gross203-682-8253investorrelations@carrols.com
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