Carrols Restaurant Group, Inc. (TAST) swung to a net loss for the quarter ended Apr. 02, 2017. The company has made a net loss of $5.60 million, or $ 0.16 a share in the quarter, against a net profit of $2.14 million, or $0.05 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $4.82 million, or $0.14 a share compared with a net profit of $2.29 million, or $0.05 a share in the last year period. Revenue during the quarter grew 7.79 percent to $239.85 million from $222.52 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 73.22 percent. Operating margin for the quarter stood at negative 0.59 percent as compared to a positive 3 percent for the previous year period.
Operating loss for the quarter was $1.41 million, compared with an operating income of $6.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.88 million compared with $18.48 million in the prior year period. At the same time, adjusted EBITDA margin contracted 252 basis points in the quarter to 5.79 percent from 8.31 percent in the last year period.
Daniel T. Accordino, the Company's chief executive officer said, "Total restaurant sales increased 7.8% in the first quarter of 2017 reflecting our acquisition of 99 restaurants since the beginning of last year. As expected however, we had a modest decrease in comparable restaurant sales as we cycled past our strongest 2016 quarterly comparison, a 5.7% increase. Lower Adjusted EBITDA and Adjusted EBITDA margin reflected continuing pressure on wage rates, modestly higher commodity costs along with increased promotions and discounting which accelerated over the course of the past year. Adjusted EBITDA margin was further impacted by lower margins at the restaurants we have acquired, fixed costs deleveraging from lower comparable restaurant sales along with the seasonable impact of lower average sales volumes."
For financial year 2017, Carrols Restaurant Group, Inc. projects revenue to be in the range of $1,030 million to $1,060 million.
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