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What's in Store for Carrols Restaurant's (TAST) in Q4 Earnings?
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Carrols Restaurant Group, Inc. is likely to register year-over-year earnings and revenue growth in its fourth-quarter 2023 results. The uptrend is likely to have been driven by strong Burger King Performance, digital business growth and new product launches. In the last reported quarter, the company reported an earnings surprise of 128.6%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 5 cents, indicating growth of 200% from a loss of 5 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $470.4 million. The metric suggests growth of 5.7% from the year-ago quarter’s figure.
Carrols Restaurant Group, Inc. Price and EPS Surprise
Let’s analyze the factors that are likely to impact the company’s performance in the quarter to be reported.
Factors at Play
For the to-be-reported quarter, TAST’s top line is expected to have reflected mid-single digits comparable sales growth at its Burger King restaurants supported by accelerating traffic and successful product launches (such as the BK Royal Crispy Wraps). This, along with the expansion of Carol's digital business (nearing 10% of total sales) and investments in digital infrastructure like self-order kiosks, is likely to have helped sustain momentum into the fourth quarter.
Burger King's latest restaurant format (Sizzle) is anticipated to contribute positively to the company's fourth-quarter performance. The upgraded Sizzle image is set to enhance the customer experience through digital advancements, revamped Drive-Thru and pickup processes and distinctive design elements.
The company forecasts adjusted EBITDA to fall within the $28-$32 million range for the fourth quarter. Favorable factors such as reduced beef costs, minimal commodity inflation (projected in the low-single digits) and enhanced vendor agreements are expected to have bolstered margins and profitability in the upcoming reporting period.
What Our Model Says
Our proven model does not predict an earnings beat for Carrols Restaurant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Carrols Restaurant has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #1 at present.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Shares of PLAY have gained 59.7% in the past three months. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 34.5%.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) has an Earnings ESP of +7.75% and a Zacks Rank #3 at present.
The company's shares have declined 8% in the past three months. CBRL’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being negative 6.5%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +26.62% and a Zacks Rank #3 at present.
Shares of SG have jumped 22% in the past three months. SG’s earnings beat estimates in one of the trailing four quarters and missed thrice, the average surprise being negative 2.9%.
Image: Bigstock
What's in Store for Carrols Restaurant's (TAST) in Q4 Earnings?
Carrols Restaurant Group, Inc. is likely to register year-over-year earnings and revenue growth in its fourth-quarter 2023 results. The uptrend is likely to have been driven by strong Burger King Performance, digital business growth and new product launches. In the last reported quarter, the company reported an earnings surprise of 128.6%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at 5 cents, indicating growth of 200% from a loss of 5 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $470.4 million. The metric suggests growth of 5.7% from the year-ago quarter’s figure.
Carrols Restaurant Group, Inc. Price and EPS Surprise
Carrols Restaurant Group, Inc. price-eps-surprise | Carrols Restaurant Group, Inc. Quote
Let’s analyze the factors that are likely to impact the company’s performance in the quarter to be reported.
Factors at Play
For the to-be-reported quarter, TAST’s top line is expected to have reflected mid-single digits comparable sales growth at its Burger King restaurants supported by accelerating traffic and successful product launches (such as the BK Royal Crispy Wraps). This, along with the expansion of Carol's digital business (nearing 10% of total sales) and investments in digital infrastructure like self-order kiosks, is likely to have helped sustain momentum into the fourth quarter.
Burger King's latest restaurant format (Sizzle) is anticipated to contribute positively to the company's fourth-quarter performance. The upgraded Sizzle image is set to enhance the customer experience through digital advancements, revamped Drive-Thru and pickup processes and distinctive design elements.
The company forecasts adjusted EBITDA to fall within the $28-$32 million range for the fourth quarter. Favorable factors such as reduced beef costs, minimal commodity inflation (projected in the low-single digits) and enhanced vendor agreements are expected to have bolstered margins and profitability in the upcoming reporting period.
What Our Model Says
Our proven model does not predict an earnings beat for Carrols Restaurant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Carrols Restaurant has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #1 at present.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) has an Earnings ESP of +3.51% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of PLAY have gained 59.7% in the past three months. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 34.5%.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) has an Earnings ESP of +7.75% and a Zacks Rank #3 at present.
The company's shares have declined 8% in the past three months. CBRL’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being negative 6.5%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +26.62% and a Zacks Rank #3 at present.
Shares of SG have jumped 22% in the past three months. SG’s earnings beat estimates in one of the trailing four quarters and missed thrice, the average surprise being negative 2.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.