Critical Review: Carrols Restaurant Group (TAST) & The Competition
Carrols Restaurant Group (NASDAQ: TAST) is one of 24 publicly-traded companies in the “Quick Service Restaurants” industry, but how does it weigh in compared to its peers? We will compare Carrols Restaurant Group to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Risk and Volatility
Carrols Restaurant Group has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, Carrols Restaurant Group’s peers have a beta of 0.49, suggesting that their average stock price is 51% less volatile than the S&P 500.
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||7.36%||16.24%||10.07%|
Earnings & Valuation
This table compares Carrols Restaurant Group and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Carrols Restaurant Group||$943.58 million||$45.47 million||15.14|
|Carrols Restaurant Group Competitors||$2.98 billion||$437.35 million||137.26|
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.
This is a summary of current ratings and target prices 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||255||1400||1696||81||2.47|
Carrols Restaurant Group currently has a consensus price target of $15.50, suggesting a potential upside of 42.20%. As a group, “Quick Service Restaurants” companies have a potential upside of 10.62%. Given Carrols Restaurant Group’s stronger consensus rating and higher possible upside, analysts plainly believe Carrols Restaurant Group is more favorable than its peers.
Institutional & Insider Ownership
86.8% of Carrols Restaurant Group shares are held by institutional investors. Comparatively, 78.3% 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, 16.9% of shares of all “Quick Service Restaurants” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Carrols Restaurant Group peers beat Carrols Restaurant Group on 9 of the 13 factors compared.
About Carrols Restaurant Group
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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