Carrols Restaurant Group (NASDAQ:TAST), the largest franchisee of Burger King (BKW) restaurants, is in the middle of a major expansion after acquiring 278 locations from Burger King last year. The company has a strong management team in place, and I expect that TAST will improve productivity on the units they acquired. The big question is Does it really matter? I am not recommending a short or sale of the company, but I would like to provide a different view for investors to think about: Even if the company is successful with the acquisition, the returns available as compared to other names in the restaurant industry don't justify an investment at this current time.
Later in the report I...
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