Josh Arnold
Long/short equity

Carrols Restaurant Group: Turnaround In Progress

Overview and Thesis

Carrols Restaurant Group (NASDAQ:TAST) is the country's largest Burger King (BKC) franchisee. The company operates roughly 570 BK restaurants throughout the Mid-Atlantic, Northeast and Midwest US following a recent acquisition of a large number of restaurants last year. Since the spinoff of Fiesta (NASDAQ:FRGI) shares of Carrols have been volatile but have risen slightly to the $6.25 area at present. Given last year's operating loss and bleak outlook investors are left to wonder if there is downside in the stock or if a turnaround is on the horizon. In addition to operational challenges the company's balance sheet has its share of issues. Despite these and other factors I'll argue here that...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details