"The underlying fundamentals of our Hispanic Brands business arestrong, and we can withstand near-term challenges," said AlanVituli, chairman and CEO. For the year, the company expects to openseven to nine Pollo Tropical restaurants, nine to 11 Taco Cabanarestaurants and two to four new Burger King restaurants (actuallyexisting units to be relocated). The company also plans to closethree Burger King restaurants in addition to the relocations andthree Taco Cabana restaurants. During the quarter, Carrols openedthree Pollo Tropicals, one Taco Cabana and closed one BurgerKing.

Total revenues increased 5.2% to $200.4 million from $190.6million, including a 6.5% increase for the company's HispanicBrands. Comparable-restaurant sales rose 5.3% over the previousyear 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 incomeof $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 Cabanarestaurants.