Shaun Currie, CFA
Long/short equity, hedge fund analyst, momentum

Carrols Restaurant Group: Is It Worth The Risk?

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
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
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset 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