Carrols Restaurant sinks to near 6-yr low after Q4 forecast miss

Carrols Restaurant

13/01/2020 18:58

** Carrols Restaurant Group Inc  TAST.O  shares down 13.62% at
$5.87
    ** Stock hits lowest level since Feb 2014 and on track for
biggest one-day % drop since May 8
    ** Co reports preliminary 29% rev increase to $397.6 mln vs
Refinitiv IBES estimate of $408.06 mln
    ** TAST says for Q419 comparable sales of Burger King
restaurants increased 2% compared to 2.7% increase in prior yr
qtr; for FY2019 co says they increased 2.2% vs 3.8% increase in
2018  urn:newsml:reuters.com:*:nBw8Ls62Ba
    ** CEO says although comp sales decelerated in Nov and Dec,
co encouraged by "continued strength of the Impossible Whopper,
the Popeyes Chicken Sandwich, and the muted discount environment
throughout the fourth quarter"
    ** All 6 brokerages covering TAST recommend buying the
stock; median PT is $11
    ** ~1.64 mln TAST shares have traded so far today, more than
4x the 30-DMA volume of ~377k (Refinitiv data)
    ** With Mon drop, TAST extending YTD loss to ~17%. Stock has
fallen the 3 prior yrs: 28% (2019), 19% (2018) and 20% (2017)

 (Reporting by Lance Tupper)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))