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Factors to Note Ahead of Carrols Restaurant (TAST) Q3 Earnings
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Carrols Restaurant Group, Inc. (TAST - Free Report) is scheduled to report third-quarter 2023 results on Nov 9, 2023, before the opening bell. In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter earnings is pegged at 7 cents per share, suggesting an improvement from a loss of 14 cents reported in the year-ago quarter.
The consensus mark for revenues is pegged at $476.4 million, suggesting growth of 7.3% year over year.
Carrols Restaurant Group, Inc. Price and EPS Surprise
Let's discuss the factors that are likely to have influenced the quarter under discussion.
Factors at Play
Carrols Restaurant’s third-quarter earnings and revenues are expected to have increased year over year on the back of strong comparable restaurant sales growth for TAST’s Burger King and Popeyes restaurants. An increase in average check and menu prices is likely to have aided the company’s performance. The Zacks Consensus Estimate for restaurant sales is pegged at $473 million, up 6.5% year over year.
Meanwhile, moderating inflation and Carrols Restaurant’s continued focus on operational efficiencies are likely to have aided the bottom line. Margins in the quarter are expected to have been driven by a decline in wage inflation and renting expenses. During third-quarter 2023, management noted that it expects wage inflation to be in the mid-single digits in 2023 compared with the high single-digit inflation in 2022.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Carrols Restaurant this time around. TAST does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: TAST 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: Carrols Restaurant has a Zacks Rank #2 (Buy).
Stocks Poised to Beat on Earnings
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.
AEO’s earnings for the to-be-reported quarter are expected to decline 11.9%. It reported better-than-expected earnings in three of the last four quarters and remained at par on one occasion, the average surprise being 43.2%.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +1.87% and holds a Zacks Rank of 2.
ANF’s earnings for the to-be-reported quarter are expected to increase by 10600%. It reported better-than-expected earnings in three of the last four quarters and missed once, the average beat being 724.8%.
The Gap, Inc. (GPS - Free Report) has an Earnings ESP of +32.31% and sports a Zacks Rank of 1.
GPS’ earnings for the to-be-reported quarter are expected to decline 71.8%. It reported better-than-expected earnings in three of the last four quarters and missed once, the average beat being 1001.6%.
Image: Bigstock
Factors to Note Ahead of Carrols Restaurant (TAST) Q3 Earnings
Carrols Restaurant Group, Inc. (TAST - Free Report) is scheduled to report third-quarter 2023 results on Nov 9, 2023, before the opening bell. In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter earnings is pegged at 7 cents per share, suggesting an improvement from a loss of 14 cents reported in the year-ago quarter.
The consensus mark for revenues is pegged at $476.4 million, suggesting growth of 7.3% year over year.
Carrols Restaurant Group, Inc. Price and EPS Surprise
Carrols Restaurant Group, Inc. price-eps-surprise | Carrols Restaurant Group, Inc. Quote
Let's discuss the factors that are likely to have influenced the quarter under discussion.
Factors at Play
Carrols Restaurant’s third-quarter earnings and revenues are expected to have increased year over year on the back of strong comparable restaurant sales growth for TAST’s Burger King and Popeyes restaurants. An increase in average check and menu prices is likely to have aided the company’s performance. The Zacks Consensus Estimate for restaurant sales is pegged at $473 million, up 6.5% year over year.
Meanwhile, moderating inflation and Carrols Restaurant’s continued focus on operational efficiencies are likely to have aided the bottom line. Margins in the quarter are expected to have been driven by a decline in wage inflation and renting expenses. During third-quarter 2023, management noted that it expects wage inflation to be in the mid-single digits in 2023 compared with the high single-digit inflation in 2022.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Carrols Restaurant this time around. TAST does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: TAST 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: Carrols Restaurant has a Zacks Rank #2 (Buy).
Stocks Poised to Beat on Earnings
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.
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +8.58% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AEO’s earnings for the to-be-reported quarter are expected to decline 11.9%. It reported better-than-expected earnings in three of the last four quarters and remained at par on one occasion, the average surprise being 43.2%.
Abercrombie & Fitch Co. (ANF - Free Report) has an Earnings ESP of +1.87% and holds a Zacks Rank of 2.
ANF’s earnings for the to-be-reported quarter are expected to increase by 10600%. It reported better-than-expected earnings in three of the last four quarters and missed once, the average beat being 724.8%.
The Gap, Inc. (GPS - Free Report) has an Earnings ESP of +32.31% and sports a Zacks Rank of 1.
GPS’ earnings for the to-be-reported quarter are expected to decline 71.8%. It reported better-than-expected earnings in three of the last four quarters and missed once, the average beat being 1001.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.