Carrols Restaurant Reports Mixed Q1 Results

• Carrols Restaurant Group Inc (NASDAQ:TAST) reported first-quarter FY22 sales growth of 2.4% year-on-year to $399.48 million, missing the consensus of $402.37 million.
• Comparable restaurant sales for Burger King restaurants increased 1.6%, and Popeyes restaurants increased 2.2%.
• Operating expenses rose 6.7% Y/Y to $419.3 million.
• The operating loss for the quarter was $(19.8) million versus a loss of $(3.1) million last year.
• The company held $8.5 million in cash and equivalents as of April 3, 2022.
• Adjusted EBITDA of $4.3 million fell 78.4% Y/Y. Adjusted Restaurant-Level EBITDA margin declined 450 basis points to 5.6%.
• Adjusted EPS loss of $(0.34) beat the analyst consensus of $(0.35).
• "Inflationary challenges continue to meaningfully affect our profitability metrics with commodity costs and team member average hourly wages both increasing on a percentage basis in the mid-teens compared to last year," said CEO Paulo A.Pena.
• Price Action: TAST shares are trading lower by 0.43% at $1.38 on the last check Thursday.