Is Carrols Restaurant Group Inc (NASDAQ:TAST) Excessively Paying Its CEO?

Dan Accordino has been the CEO of Carrols Restaurant Group Inc (NASDAQ:TAST) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Carrols Restaurant Group

How Does Dan Accordino’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Carrols Restaurant Group Inc has a market cap of US$475m, and is paying total annual CEO compensation of US$3m. Notably, that’s an increase of 36% over the year before. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$2m.

As you can see, Dan Accordino is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Carrols Restaurant Group Inc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Carrols Restaurant Group, below.

NasdaqGS:TAST CEO Compensation November 7th 18
NasdaqGS:TAST CEO Compensation November 7th 18

Is Carrols Restaurant Group Inc Growing?

On average over the last three years, Carrols Restaurant Group Inc has grown earnings per share (EPS) by 65% each year. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Carrols Restaurant Group Inc Been A Good Investment?

Carrols Restaurant Group Inc has generated a total shareholder return of 6.0% over three years, so most shareholders wouldn’t be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared the total CEO remuneration paid by Carrols Restaurant Group Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Carrols Restaurant Group Inc (free visualization of insider trades).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.