Truist rates Carrols stock buy with a $6 price target.īurger King and Popeyes are both part of the Restaurant Brands International Inc. ” Inflationary pressures are muting margins, but we expect a moderation in 2H22, driving margin expansion.” “Carrols is taking significant menu pricing (~8%), but has been careful to align price actions with competitors, limiting the risk of overshooting,” wrote Truist in a note. In addition to challenges tied to inflation and weather, Carrols is undergoing a change in leadership, with the company announcing a new chief executive effective April 1.Īlso: Carrols names McDonald’s vet as CEO February, on the other hand, has been “promising.” Sales totaled $416.1 million, down from $420.5 million and just ahead of the FactSet consensus for $415.8 million.Ĭarrols operates 1,028 Burger King restaurants across 23 states, and 65 Popeyes restaurants in seven states.Ĭomparable restaurant sales at Burger King rose 7.4% for the quarter, and were up 1% at Popeyes.Īccordino called January 2022 a “challenging month” with snowstorms in major markets and omicron-related staffing issues driving down Burger King comparable sales by 1.4%. An adjusted loss of 15 cents per share was narrower than the FactSet consensus for a loss of 25 cents per share. We also intend to continue to move pricing to partially offset inflation to the extent possible without impacting traffic.”Īnd: Kraft Heinz and TheNotCompany joint venture will focus on plant-based foodsĬarrolls reported a fourth quarter net loss of $16.4 million, or 33 cents per share, after a loss of $18.6 million, or 37 cents per share, last year. “While we cannot predict when these inflationary cost pressures will end, we can say that we believe that in the back half of 2022, the year-over-year percentage increases for labor and commodity costs will moderate. The companys first major chicken product, its Original Chicken Sandwich, was also part of the companys 1978 Specialty Sandwich line. As a result, commodity inflation overall was approximately 16% this past quarter compared to the prior year period,” Accordino said. “Domestic food, paper producers and distributors supplying most of our commodities are dealing with labor constraints, along with higher fuel costs and are passing the increases on to us. See: Nitro Pepsi, a creamy cola that leaves a frothy mustache, launches March 28Ĭarrols detailed the commodity inflation that the company is facing, with beef, which makes up a quarter of its food basket, up 33% over last year.Ĭarrols is also facing labor inflation, with the company raising average hourly wages by 14% year-over-year as it tried to maintain open hours from 6am to 11pm while competing to hire and retain workers. The Whopper, the brand’s most popular product by a wide margin, has also been removed as a core discount item and is no longer available in the two-for-six or two-for-five promotions.” “Recent actions in this regard from our franchisor include lifting price caps on value menu items and reducing the number of nuggets meals from 10 pieces to 8. Ghost Pepper Chicken Nuggets will be available in Burger King restaurants across Canada until October 17.“As you may have recently read, the Burger King brand has about a dozen menu and promotional initiatives, some of which have already been implemented and some that will be implemented over the course of this year,” said Daniel Accordino, chief executive of Carrols, on the Thursday earnings call, according to a FactSet transcript. Redemption details are only visible when the coupon is warmed. From July 15-17, street teams across Toronto will be handing out the one-of-a-kind offers, which celebrate the idea that great things can happen when you add a little heat. To celebrate the launch of these heat-fueled new Nuggets, Burger King is rewarding thousands of Canadians with heat-activated coupons. Prova i nuovi King Nuggets di Burger King® Deliziose pepite di pollo, tenere e croccanti, da gustare in ogni momento della giornata. Ghost Pepper Nuggets, which were originally introduced at Burger King locations in the US last fall, join a spicy line-up on the Burger King summer menu that includes the brand's Spicy Chicken Sandwich, Nashville Hot Chicken Sandwich and Mango Habanero King. "We're giving new meaning to the launch of a 'hot' new menu item with these nuggets, made from one of the world's hottest peppers." "We know our Canadian Guests love spice, so we're thrilled to be expanding our spicy menu line-up with Ghost Pepper Chicken Nuggets," said Matt Wright, General Manager, Burger King Canada. Burger King® is Bringing the Heat with the Launch of Ghost Pepper Chicken Nuggets (CNW Group/Burger King Canada)
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