Carrols Restaurant Group, Inc. (NASDAQ:TAST) reported second-quarter FY23 sales growth of 9.8% year-on-year to $485.22 million, beating the consensus of $475.23 million.
Adjusted EPS of $0.27 beat the analyst consensus of $0.02.
“We had one of the best quarters in the company’s 63-year history….,” said CEO Deborah Derby.
Comparable restaurant sales for the company’s Burger King restaurants increased 10.4%, while Popeyes restaurants increased 11.6%.
Adjusted Restaurant-Level EBITDA nearly doubled to $67.8 million in Q2. Adjusted Restaurant-Level EBITDA margin improved to 14% of restaurant sales (+620 bps).
Operating income was $23.2 million in Q2, compared to a loss from operations of $(25) million in the prior year quarter.
The company exited the quarter with $40.9 million in cash and equivalents. Including the cash balance, the company had $245.4 million of available liquidity.
“Our top priorities remain fortifying our balance sheet, reducing our net debt, and staying the course on organic growth,” Derby added.
As of the end of the quarter, the company’s net debt totaled $435.89 million.
Price Action: TAST shares are trading higher by 18.7% at $7.35 on the last check Thursday.
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