Carrols Restaurant Group, the largest Burger King franchisee in the United States, on Monday reported its preliminary sales results for the fourth quarter and full year 2023.
Preliminary sales results for the Fourth Quarter of 2023 versus the Fourth Quarter of 2022 include:
Total restaurant sales increased 5.7 percent to $470.4 million compared to $445.1 million in the fourth quarter of 2022;
Comparable restaurant sales for the company’s Burger King restaurants increased 7.2 percent; and
Comparable restaurant sales for the company’s Popeyes restaurants increased 7.6 percent.
Preliminary sales results for the Full Year 2023 versus the Full Year 2022 include:
Total restaurant sales increased 8.4 percent to $1.88 billion compared to $1.73 billion in the full year of 2022;
Comparable restaurant sales for the company’s Burger King restaurants increased 9.3 percent; and
Comparable restaurant sales for the company’s Popeyes restaurants increased 10.1 percent.
Deborah M. Derby, president and Chief Executive Officer of Carrols, commented “Our strong Burger King comparable restaurant sales growth of 7.2 percent in the fourth quarter of 2023 was driven by average check growth of 4.2 percent, along with a 2.9 percent increase in traffic. This result was primarily due to the combination of the continued operational improvement efforts by the Carrols’ team and the positive impact of our franchisor’s Reclaim the Flame initiative, as well as a benefit from the timing of the holidays as compared to last year. Our Popeye’s restaurants also continued to perform well as comparable restaurant sales grew 7.6 percent in the fourth quarter. We expect to see continued momentum at both of our brands in 2024.”
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The company now believes that fourth quarter Adjusted EBITDA will be at the high end or slightly above the high end of the previously provided range of $28 million to $32 million, with lower than expected beef costs contributing, in part, to the favorable results. This equates to 2023 Adjusted EBITDA being at the high end or slightly above the high end of the previously provided range of $145 to $149 million.
During the fourth quarter of 2023, the company used its cash balances to repay $30 million of the outstanding principal amount of its Term Loan B borrowings under its senior credit facility. As of year-end 2023, the outstanding amount of Term Loan B borrowings under the company’s senior credit facility was $133.4 million. The company also used its cash balances during the fourth quarter of 2023 to reduce the outstanding amount of its Senior Notes due in 2029 by $9.9 million to $290.1 million through open market repurchases.
