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Bull Of The Day: Carrols Restaurant Group (TAST)

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Carrols Restaurant Group (TAST - Free Report) is a Zacks Rank #1 (Strong Buy) that has an A for Value and an A for Growth.  Carrols Restaurant Group is the largest Burger King franchisee and has some Popeye’s stores in the mix.  The company just posted a good beat and shares are on the move higher. Let’s explore more about this company in this Bull of The Day article.


Carrols Restaurant Group, Inc. engages in the operation of restaurants under the Burger King and Popeyes brands. It serves flame-broiled whopper sandwich, hamburgers, chicken and other specialty sandwiches, fries, salads, breakfast items, smoothies, frappes, and other snacks. The company was founded in 1960 and is headquartered in Syracuse, NY.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For Carrols Restaurant Group, I see four beats of the Zacks Consensus Estimate.  These are all big beats topping the estimate by an average of about 16 cents.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

For TAST, estimates are moving higher.

This quarter has moved from $0.03 to $0.04.

There is no estimate for the first quarter of next year at this time.

The full year 2023 has seen estimates move from $0.37 to $0.42 over the last 7 days.

Next fiscal year has seen a move higher from $0.39 to $0.45 over the same period.


The valuation is pretty reasonable given the higher estimates and the tendency to crush the quarter.  The forward PE is 17.8x, but if we stretch the time horizon out to next year, we see the a little lower than that.  The price to sales comes in a 0.22x and the company has seen operating margins move from -1.05% to 1.53%. If margins keep improving at this rate, the stock should move a lot higher.

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