SYRACUSE, NY—In spite of slow and declining comp store sales at its Hispanic Brands units, Carrols Restaurant Group remains committed to expanding Pollo Tropical and Taco Cabana, executives said at its second quarter conference call on Friday. The company plans to expand those brands by approximately 10% annually, opening a total of 16 to 20 new units this year. That is a slight drop from original estimates, as some openings have shifted into 2008 due to construction delays, the executives said.

“The underlying fundamentals of our Hispanic Brands business are strong, and we can withstand near-term challenges,” said Alan Vituli, chairman and CEO. For the year, the company expects to open seven to nine Pollo Tropical restaurants, nine to 11 Taco Cabana restaurants and two to four new Burger King restaurants (actually existing units to be relocated). The company also plans to close three Burger King restaurants in addition to the relocations and three Taco Cabana restaurants. During the quarter, Carrols opened three Pollo Tropicals, one Taco Cabana and closed one Burger King.

Total revenues increased 5.2% to $200.4 million from $190.6 million, including a 6.5% increase for the company’s Hispanic Brands. Comparable-restaurant sales rose 5.3% over the previous year at Burger King and 1.2% at Pollo Tropical, and declined 0.5% at Taco Cabana. Net income was $5.1 million, compared to net income of $3.1 million last year.

As of June 30, the company operated a total of 548 restaurants, including 326 Burger King, 80 Pollo Tropical and 142 Taco Cabana restaurants.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.