Shares of Carrols Restaurant Group saw a significant boost, rising over 20% in premarket trading on Thursday. As the largest Burger King franchisee in the U.S., Carrols reported better-than-expected quarterly results, driving investor confidence.
For the quarter ended October 1, the Syracuse-based company achieved an adjusted profit of 16 cents per share. This impressive performance was supported by a 7.2% increase in sales, reaching $475.8 million.
Analysts surveyed by FactSet had predicted adjusted earnings of 5 cents per share on sales of $469 million on average. Carrols surpassed these projections, exceeding expectations on both profitability and revenue.
One of the key drivers of Carrols' success was the robust growth in comparable-restaurant sales for its Burger King locations, which rose by 8.1%. This exceeded Wall Street's forecasted growth rate of 6.2%, further highlighting the company's strong performance.
As a result of these impressive developments, Carrols' shares experienced a remarkable surge. After closing at $6.22 on Wednesday, the stock soared by 22% to reach $7.61 in premarket trading.
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