Carrols Restaurant Group, Inc. (TAST) has reported a 37.99 percent plunge in profit for the quarter ended Oct. 02, 2016. The company has earned $4.49 million, or $0.10 a share in the quarter, compared with $7.24 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.63 million, or $0.13 a share compared with $7.71 million or $0.17 a share, a year ago.
Revenue during the quarter grew 9.74 percent to $238.87 million from $217.68 million in the previous year period. Gross margin for the quarter expanded 115 basis points over the previous year period to 73.27 percent. Total expenses were 96.21 percent of quarterly revenues, up from 94.60 percent for the same period last year. That has resulted in a contraction of 161 basis points in operating margin to 3.79 percent.
Operating income for the quarter was $9.05 million, compared with $11.75 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $22.71 million compared with $22.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 60 basis points in the quarter to 9.51 percent from 10.11 percent in the last year period.
Daniel T. Accordino, the Company's chief executive officer said, "Expanding our restaurant portfolio by more than 11% over the past year enabled us to increase both sales and Adjusted EBITDA during the quarter. However, comparable restaurant sales were flat, reflecting our strong performance last year as well as the cautious state of the consumer in what has been a highly competitive and promotional QSR environment. We continued to benefit from favorable commodity costs and improved margins at acquired restaurants, but were unable to leverage higher labor, advertising or depreciation and amortization expenses, which negatively impacted overall operating margins. While we remain confident in the longer term Burger King strategy, based on our year-to-date results we have modestly revised our previous guidance for the year."
For financial year 2016, Carrols Restaurant Group, Inc. projects revenue to be in the range of $940 million to $950 million.
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