Shares of Burger King Holdings Inc. rose Tuesday after the fast-food chain’s largest franchisee said same-store sales are rising as more consumers look for affordable meal options.
Carrols Restaurant Group Inc. said late Monday that same-store sales at its 315 Burger King franchises are up in the 5 percent range in the current quarter. Same-store sales are a key measure for restaurants and retailers since it measures growth at stores open at least a year.
Piper Jaffray & Co. analyst Nicole Miller Regan said Carrols’ same-store-sales figures for its Burger King franchises serve as a good indicator of the fast-food chain’s results. The 5 percent increase compares favorably to her estimate that Burger King’s same-store sales will be flat in North America in its fiscal third quarter, which ends in March.
Carrols, which also operates Pollo Tropical and Taco Cabana restaurants, also reported same-store sales rose 1.2 percent at Burger King and 0.5 percent at Taco Cabana in the fourth quarter, while same-store sales dropped 3.6 percent at Pollo Tropical. Total revenues grew 1.8 percent to $200.8 million, beating Wall Street’s forecast of $200.7 million, according to Thomson Reuters.
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