DB:XQC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Carrols Restaurant Group

Executive Summary

Carrols Restaurant Group, Inc., through its subsidiaries, operates as a restaurant company in the United States.


Snowflake Analysis

Fair value with weak fundamentals.


Similar Companies

Share Price & News

How has Carrols Restaurant Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XQC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.0%

XQC

3.9%

DE Hospitality

3.5%

DE Market


1 Year Return

-44.0%

XQC

-34.8%

DE Hospitality

3.0%

DE Market

Return vs Industry: XQC underperformed the German Hospitality industry which returned -34.8% over the past year.

Return vs Market: XQC underperformed the German Market which returned 3% over the past year.


Shareholder returns

XQCIndustryMarket
7 Day7.0%3.9%3.5%
30 Day2.2%-13.4%-0.08%
90 Day188.6%14.9%21.0%
1 Year-44.0%-44.0%-32.2%-34.8%5.2%3.0%
3 Year-55.9%-55.9%-47.1%-54.2%4.5%-4.0%
5 Year-53.7%-53.7%-47.6%-58.6%11.5%-3.2%

Price Volatility Vs. Market

How volatile is Carrols Restaurant Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Carrols Restaurant Group undervalued compared to its fair value and its price relative to the market?

39.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XQC (€4.56) is trading below our estimate of fair value (€7.59)

Significantly Below Fair Value: XQC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: XQC is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: XQC is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate XQC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: XQC is good value based on its PB Ratio (0.9x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Carrols Restaurant Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

45.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XQC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: XQC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: XQC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: XQC's revenue (2.5% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: XQC's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XQC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Carrols Restaurant Group performed over the past 5 years?

-5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XQC is currently unprofitable.

Growing Profit Margin: XQC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: XQC is unprofitable, and losses have increased over the past 5 years at a rate of -5.7% per year.

Accelerating Growth: Unable to compare XQC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: XQC is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: XQC has a negative Return on Equity (-15.07%), as it is currently unprofitable.


Next Steps

Financial Health

How is Carrols Restaurant Group's financial position?


Financial Position Analysis

Short Term Liabilities: XQC's short term assets ($75.1M) do not cover its short term liabilities ($139.6M).

Long Term Liabilities: XQC's short term assets ($75.1M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: XQC's debt to equity ratio (187%) is considered high.

Reducing Debt: XQC's debt to equity ratio has increased from 155% to 187% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: XQC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if XQC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Carrols Restaurant Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate XQC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate XQC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if XQC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if XQC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of XQC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Dan Accordino (69yo)

8.5yrs

Tenure

US$2,331,775

Compensation

Mr. Daniel T. Accordino, also known as Dan, has been the Chief Executive Officer of Carrols Restaurant Group, Inc. since January 1, 2012 and has been its President since February 1993. Mr. Accordino has be ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD2.33M) is above average for companies of similar size in the German market ($USD780.56K).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Accordino
Chairman of the Board8.5yrsUS$2.33m3.14% $7.5m
Nathan Mucher
Chief Information Officer & VP1.67yrsUS$529.96k0.057% $136.5k
Anthony Hull
VP, CFO & Treasurer0.50yrno data0.48% $1.1m
Markus Hartmann
VP, General Counsel & Secretary0.42yrno data0.10% $238.9k
Gerald DiGenova
Vice President of Human Resources19yrsUS$580.12k0.33% $803.2k
Maria Mathews
Controller & Assistant Treasurerno datano datano data

1.7yrs

Average Tenure

61yo

Average Age

Experienced Management: XQC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Accordino
Chairman of the Board8.5yrsUS$2.33m3.14% $7.5m
Hannah Craven
Independent Director5.33yrsUS$177.51k0.11% $270.1k
Lawrence Hyatt
Independent Director3.08yrsUS$181.01k0.069% $165.5k
David Harris
Independent Director8.17yrsUS$180.51k0.23% $556.9k
Deborah Derby
Independent Director2.08yrsUS$215.00k0.065% $155.2k
Alexander Sloane
Independent Director1.5yrsUS$45.58k0.096% $229.2k
Matthew Perelman
Independent Director1.5yrsUS$45.58k0.095% $227.6k
Matthew Dunnigan
Director2.42yrsUS$60.00kno data
Christopher Finazzo
Director0.42yrno datano data

2.4yrs

Average Tenure

54yo

Average Age

Experienced Board: XQC's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.8%.


Top Shareholders

Company Information

Carrols Restaurant Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carrols Restaurant Group, Inc.
  • Ticker: XQC
  • Exchange: DB
  • Founded: 1960
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$271.000m
  • Listing Market Cap: US$239.890m
  • Shares outstanding: 52.72m
  • Website: https://www.carrols.com

Number of Employees


Location

  • Carrols Restaurant Group, Inc.
  • 968 James Street
  • PO Box 6969
  • Syracuse
  • New York
  • 13203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TASTNasdaqGS (Nasdaq Global Select)YesVoting Common StockUSUSDDec 2006
XQCDB (Deutsche Boerse AG)YesVoting Common StockDEEURDec 2006

Biography

Carrols Restaurant Group, Inc., through its subsidiaries, operates as a restaurant company in the United States. The company operates as a Burger King franchisee. As of December 29, 2019, it had, as franchisee, 1,036 Burger King restaurants located in 23 Northeastern, Midwestern, and Southeastern states; and 65 Popeyes restaurants in seven Southeastern states. The company was founded in 1960 and is headquartered in Syracuse, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 21:37
End of Day Share Price2020/07/07 00:00
Earnings2020/03/29
Annual Earnings2019/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.