Critical Contrast: Carrols Restaurant Group (TAST) versus Its Competitors

Carrols Restaurant Group (NASDAQ: TAST) is one of 22 public companies in the “Quick Service Restaurants” industry, but how does it contrast to its peers? We will compare Carrols Restaurant Group to similar companies based on the strength of its dividends, analyst recommendations, institutional ownership, earnings, valuation, profitability and risk.

Institutional & Insider Ownership

86.7% of Carrols Restaurant Group shares are held by institutional investors. Comparatively, 79.8% of shares of all “Quick Service Restaurants” companies are held by institutional investors. 5.6% of Carrols Restaurant Group shares are held by company insiders. Comparatively, 16.8% of shares of all “Quick Service Restaurants” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Carrols Restaurant Group and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Carrols Restaurant Group $999.03 million $80.24 million 15.69
Carrols Restaurant Group Competitors $3.06 billion $847.58 million 28.50

Carrols Restaurant Group’s peers have higher revenue and earnings than Carrols Restaurant Group. Carrols Restaurant Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Carrols Restaurant Group has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Carrols Restaurant Group’s peers have a beta of 0.53, indicating that their average stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Carrols Restaurant Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carrols Restaurant Group 3.44% 6.33% 1.86%
Carrols Restaurant Group Competitors 7.24% 14.42% 10.04%

Analyst Ratings

This is a summary of current recommendations and price targets for Carrols Restaurant Group and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carrols Restaurant Group 0 0 2 0 3.00
Carrols Restaurant Group Competitors 252 1375 1679 81 2.47

Carrols Restaurant Group presently has a consensus price target of $15.50, indicating a potential upside of 37.17%. As a group, “Quick Service Restaurants” companies have a potential upside of 7.81%. Given Carrols Restaurant Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Carrols Restaurant Group is more favorable than its peers.

Summary

Carrols Restaurant Group peers beat Carrols Restaurant Group on 8 of the 13 factors compared.

Carrols Restaurant Group Company Profile

Carrols Restaurant Group, Inc. is a holding company and conducts all of its operations through its subsidiary, Carrols Corporation (Carrols) and Carrols’ subsidiary, Carrols LLC. The Company is a restaurant company and Burger King franchisee in the United States. As of January 1, 2017, the Company had owned and operated 753 Burger King restaurants under the name Burger King in 16 Northeastern, Midwestern and Southeastern states. Burger King restaurants feature the flame-broiled Whopper sandwich, as well as a range of hamburgers, chicken and other specialty sandwiches, French fries, salads, breakfast items, hot dogs, snacks, smoothies, frappes and other offerings. The Company’s Burger King restaurants are located in various states, such as Illinois, Indiana, Kentucky, Maine, Massachusetts, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Vermont, Virginia and West Virginia.

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