Revenue during the quarter grew 5.14 percent to $240.83 million from $229.06 million in the previous year period. Gross margin for the quarter expanded 15 basis points over the previous year period to 72.96 percent. Total expenses were 97.48 percent of quarterly revenues, up from 94.95 percent for the same period last year. That has resulted in a contraction of 252 basis points in operating margin to 2.52 percent.

Operating income for the quarter was $6.08 million, compared with $11.56 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $20.41 million compared with $23.73 million in the prior year period. At the same time, adjusted EBITDA margin contracted 188 basis points in the quarter to 8.48 percent from 10.36 percent in the last year period.

Daniel T. Accordino, the Companys chief executive officer said, "We were pleased to have been generally in line with our 2016 outlook for restaurant sales, comparable restaurant sales and Adjusted EBITDA, especially when considering the highly competitive and promotional environment that existed throughout the year. Adjusted EBITDA margin also improved for the year due primarily to lower commodity costs, namely ground beef, and from ongoing improvements to margins at our acquired restaurants."

Carrols Restaurant Group forecasts revenue to be in the range of $1,020 million to $1,070 million for fiscal year 2017.