Carrols Restaurant Group, a Burger King franchisee headquartered in the United States, has disclosed a net profit of $12.61 million in the third quarter of 2023, a significant improvement from the net loss of $8.69 million reported in the same period last year.
For the quarter ended October 1, 2023, total restaurant sales reached $475.76 million, indicating a 7.2% increase compared to the $443.96 million reported in the same period a year ago.
In the third quarter of 2023, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $41.9 million, up from $17.7 million in Q3 2022.
The company reported a notable increase in comparable restaurant sales for its Burger King establishments, surging to 8.1% compared to the 4.9% recorded last year.
The company witnessed a substantial growth of 11.7% in comparable restaurant sales for its Popeyes establishments, marking an increase from the 6.5% recorded in the corresponding period last year.
Carrols president and CEO Deborah Derby said, “We are pleased to report yet another quarter of exceptional performance for Carrols, demonstrated by strong comparable sales growth at our Burger King and Popeyes restaurants, along with a 74% increase in our restaurant-level profitability.
“We were thrilled to achieve positive traffic growth at our Burger King restaurants earlier than anticipated, with great traction on recent product launches, such as the BK Royal Crispy Wraps, which significantly outperformed expectations in the third quarter. Equally important, we delivered continued improvement in our speed of service and guest satisfaction scores, as our team members worked hard to provide our guests with an excellent experience in our restaurants.”
Moreover, the free cash flow for the quarter amounted to $33.9 million.
Derby added, “During the quarter, we generated free cash flow of over $30m, driving a reduction in our total net leverage ratio to 2.8 times.”