TAST - Earnings call transcript Q3 2019 | Carrols Restaurant Group Inc.

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Operator

Welcome to the Carrols Restaurant Group Third Quarter 2019 Earnings Conference Call. At this time all participants are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session and the instructions will be given at that time. I would now like to remind everyone that this conference is being recorded today, Thursday, November 7, 2019, at 8:30 a.m. Eastern Time, and will be available for replay.

the to turn now will conference Mr. over I Officer. LaLonde, Interim Financial Chief Tim Please go ahead, sir.

Tim LaLonde

By should is now, our everyone. the morning, Good you section. released website www.carrols.com this Investor our Relations earnings have earlier morning, on which available at under announcement to access

our performance would plans. our regarding future we guarantees therefore, discussion guidance remind or our statements should placed like strategies, everyone are not of comments begin on Before include consist forward-looking of to undue reliance them. that These not will and statements, remarks, I which may be intentions,

with We risks, SEC also refer business you to impact could more our and the filings especially the details, our results. for that

certain be for results During or Accepted of The release. accepted Accounting we Principle measures substitute presentation that our be considered as is A additional a accordance with our Generally in today's accounting will to believe should earnings information in principles. performance. call, reconciliation available this discuss isolation not non-GAAP generally with useful we prepared can in measures evaluating comparable

that, the to of and CEO Dan call Restaurant turn I Group, will Chairman Carrols Accordino. over With now

Dan Accordino

Thanks, Tim, everyone. good and morning,

this extend for was deepest Flanders and sadness Let passing two Paul September our time. our his our sorely missed who difficult sorely, during over is Carrols' a He CFO We me sympathies served entire deep over decades. dear team. of friend as colleague begin expressing by the and family the by to

a until a LaLonde controller In and replacement decades professional, our seamless the four in With been transition be and temporarily XX the step have discuss he experienced months, company. of a quarter. are that the We able for years. over for experience rejoined search Tim the we as accounting have let's two little as basis a finance Tim and served new appointed. can an but past own commenced a who's permanent interim is identified on meantime CFO seasoned a thankful to permanent in to

mainly the Total ago by merger contributed completed the of to second smaller was well because million sales other past and compared than the of restaurant which $XXX more grew the sales acquisitions XX% top to as Cambridge as over line quarter, year $XX nearly in restaurant year. million period to our completed

We two-year in due also X.X%. consisting X.X% generated the robust during third King's traffic restaurant quarter of increase basis with sales marketing sales restaurant a Burger of to and comparable grew comparable On both the a gain increases. a mix effectiveness strategy

third October further the are the as We continued has we in that well. through encouraged experienced quarter sales momentum

million or rose However modestly and to declined to basis points $XX.X restaurant-level million due basis EBITDA EBITDA decreased -- to $XX X.X%. to points only restaurant-level EBITDA decreased EBITDA XX.X% $XXX,XXX XXX to Adjusted from margin and adjusted XX.X%. $XX.X margin million XXX

our Finally share the quarter. was adjusted net to adjusted per loss income compared diluted $X.XX of share $X.XX in prior per net diluted

in referenced the experienced King August $X.X reduced $X.X As our results significant approximately promotions sales additional restaurant Burger resulted adjusted million. by by negatively reduced those XX XX, restaurants meal and relative release, to discounts Whopper system our sales which franchise in sales at EBITDA June between to discounts and value combining respect were million with impacted by in and separate the press

restaurant million our sales issue negatively EBITDA would discounts sales sales approximately our increased This been also reduced quarter. the million. our adjusted excess adjusted and million approximately have have June in on $XX.X the a for in X.X% our year-to-date restaurant EBITDA Adjusting by impacted $XX.X sales $XX.X and by comparable same-store basis third and would approximately approximately

significant on top remarks third line but in promotion affecting stack first we'll more give most the the performance quarter. will later core I the factors my comment detail our on in

product biggest Impossible attracted new Whopper the undoubtedly have restaurants but was the third quarter. to of and not appears news only all ages. guests restaurant with Beginning our check to Impossible sales also additive in was average the into comparable Whopper The launch across August demographics

observation customers appreciate older sustainability in users visited around customers messaging guests because came Z and have back the us who Impossible who our many of while lapsed and Gen millennials its these From not including included but Whopper. a

XXXX, are plant-based encouraged build the time, remainder that therefore continue and healthy of expect shown to platform the We can that beyond. show and year success has also product's meaningfully repurchase by rates will far this the over King so optimistic on are of in this and through we Burger

successful as messaging other the driver sandwich such the consistent Burger offers quarter in only delivered segment, quarter two deal. third helped Whopper the platform Mix second Importantly, of for the did $X Match a noted promotional In the performance address taco dollar the wasn't value during as gap $X Whopper in the margin during full the meal King's Impossible perceived & $X, the menu the limited-time crispy offer $X, value quarter. a

over more been we around in more expected expectations. achieve They to September line the also with area more would to impacted in our what our been I into it with beyond and have seen October. carry results. in our the been issue we've now detail would non-recurring fourth momentum provide line from results much strong us the given quarter want have much financial this promotional not Had that for

issue the XXXX and performance system sales of in other XX level our lagging our weeks. comparing the preceding the late franchisees King, when of higher the rest We franchise relative to significantly relative same-store discovered discounts Burger during promotional August to

received to Burger We eliminated that of sequentially improvement on August raised in quarter, we decline promotional remainder margin which we red improved typically results September sales information the in our those an you led from For press immediate third the sales flag, our from a see discounts immediate encouraging when and the resulted Carrols and disclosed in review. which for unaffected closely the trends follow can excess these discounts. you of underperformance during the know we comparative This which who an system release. sales is why XX, will you King that outperformed

we that Burger these that outperforming same-store Note once trends and from King back October, perspective. system September U.S. are October, again both through broader to positive sales a continue so the in

Now a Popeyes. brief comment on

brand the than X.X% for mid-August Although less Cambridge sales quarter, sales, sandwich, increased driven featured out. by in being new X% third which sold in pre-acquisition sales currently successful our weeks of to of represents chicken before was same-store compared only this the about two the launch

as item, The a extremely returned November the in sandwich results just chain-wide initial menu and favorable. are permanent early

to restaurant grow our excited new both and acquisitions are development. We business Popeyes through

which We average by by rose rate that as cost year-over-year our other factors challenged profitability. XX% were approximately pressures X.X%. Turning and to affected increased labor nearly beef higher costs,

Although is third honed Cambridge in is our did very of last integration not the developed Cambridge schedule. restaurants that overall decade. to on the we proceeding We've contribute and playbook the and well the progressing the same over applied integration materially profitability Carrols quarter

We to to point-of-sale training, due sales which King food -- back are Cambridge back adding of and house and labor restaurants, office the of reduced improved and are at and installing systems satisfaction guest improve our should leads the sales accelerated waste. cost theft and we same-store which Burger

a We by rollout will finished mid-November. with be

a results a realized not results. the business will and flow acquisition time year. performance restaurants to model current of we is take simply shift will drive expect the The fundamentals through see reflection some the financial We of required in reflection is Cambridge at do of full that any evident until investments the our benefit it and our next to be to that not that long-term

restaurants record can prior as on are overall and overall experience confident based value track these from that our so Cambridge meaningfully However, our the have past. growth that in we of contribute and realizing creation many the meaningful these to with acquisitions the and profitability. sales performance so By drive believe they we we can improve restaurants we we improvements, our financial

long-term pursue front, have King to a On at value and allocation capital of coming pipeline shareholder drive acquisition we the in the that M&A months. Popeyes strategy both close expect targets to to compelling Burger a we and continue

confidence a value our the in As a creation in repurchase reminder, and share strategy potential. we have place reflecting Board's million authorization continued $XX

the During million common repurchased market transactions. of in $X third our open we quarter, stock

that options of believe leverage. them disciplined while capital prudent for value level high-return also Although, price of all the and not sufficient maintaining of balancing fair competing we are in business, the stock we reflect our Carrols and a allocation many have does liquidity

rigorously At X to loan, capitalized debt-to-EBITDA covenant-light approximately return. term pursue our shareholder a rates decisions will of at compound continue an net value and to are times we all with allocation we capital well goals to evaluate attractive growth believe

our the to and to over that, call guidance. detail in me With financials annual review further our let update turn Tim

Tim LaLonde

other from sales year prior quarter million, Thanks, in Dan. X.X% increase $XXX.X for increased months restaurants, past restaurant X.X% King a Restaurant million core restaurant acquired in in check the and traffic. Cambridge increased Burger for and a XX.X% our sales in sales including Cambridge customer third average the to acquisition. the restaurants which Comparable of X% $XX.X period increase over the excludes consisting XX

approximately discounts that sales price value points quarter. of meals the impacted basis the our X.X% to increase increases by during Our check the reflected that same-store in quarter. menu XXX relative average Note negatively excess our Dan Whopper third mentioned,

America our basis would comp X.X% And increase increased adjusting system, the X% points. broader sales have the of approximately and sales for XXX a comparable had the outperformed third issue restaurant North quarter King that impact have by in would which Burger

declined EBITDA $XXX,XXX from in $XX.X third in million the quarter Adjusted million $XX.X last to quarter year. the

meals the points mentioned, in reduced million XXX in quarter. by our approximately discounts approximately quarter excess the the value on reduced third third sales whopper margin and $X.X Dan basis adjusted by EBITDA EBITDA As adjusted

investments labor, Cambridge enhance part King integration believe systems, We as the future. to level we Burger in the margins mentioned, will which have restaurant in our Dan made the for restaurant restaurants of as training

$X.X million EBITDA The discounts was third decreased Restaurant-level XX.X% margin also quarter year. and increased million XXX points. reduced $XX by restaurant basis basis in margin from third for to the EBITDA sales Restaurant-level quarter excess $XX.X the in in EBITDA XXX sales impact the last quarter. of points restaurant-level million the

of excluding points as to convenience commodity reflected costs. other sales a XXX restaurant higher compared including to percentage a items. cost line increased which Cost in Cambridge prior beef Turning primarily six the year sales, the basis of increase XX.X% period, stores costs

in in quarter labor third points, a rate in XX primarily compared restaurants. X% beef our a quarter increased due $X.XX the as restaurant sales, third year. average quarter the year the basis last to quarter in of Restaurant the compared Burger a expense per a third to our hourly Ground pound averaged King prior to increase pound percentage $X.XX in

basis a and the new operating to to of expenses third sales accounting acquired of the in XXXX gain Rent deferred of quarter total high in result points elimination percentage in this revenues year the the as to period as compared third to year and a compared transactions lease standard. amortization a the of on increased sale-leaseback quarter XX prior basis a expense due maintenance percentage points revenues repair rents year percentage as as the increased due expenses. XX Other total of the higher prior

XXXX, $XX.X of acquisition acquisition costs period, costs year General which $XX.X in and quarter included in and and integration the to including in third administrative were costs. $X.X compared million in prior million integration expenses the the Cambridge million costs $XXX,XXX

Excluding these to revenues. XXX administrative expenses points in costs a general periods, percentage as of X.X% both and total basis declined

of other third of year income and for the of included to of of quarter $X.X for or share Our and The impairment million loss integration million the costs diluted acquisition net million the charges the and for or loss included share quarter compared Net charges diluted included prior -- was net and XXXX, $X.X acquisition costs. charges period per prior in period. $X.XX per of quarter million in third $X.XX $XXX,XXX $XXX,XXX income net the $X.X expenses. and impairment lease $X.X

per adjusted charges, to income third or quarter compared $X.X of $X.XX $X.X million these was loss million $X.XX net per adjusted Excluding net the share or share. in diluted diluted

arriving morning's a reminder, a adjustments summary in the release. this these of accompanying adjusted net detailed in at As tables loss are

third At $X.X the total in to liabilities were million million million the of quarter of $XXX.X first XXXX the our nine Total and capital debt cash balances million. were quarter, end and the $XX.X months. in compared reflect long-term expenditures finance third lease $XX.X

million facility revolving under $X.X million. the regard at With with end the had credit quarter, cash. we of we to quarter available And liquidity, ended third $XX.X our the third in

as Our senior net facility. EBITDA credit times defined consolidated ratio X in leverage approximately our was

million of $XX as of which shares our $X.XX in repurchased announced open Lastly, that over to stock our our million our during which little stock to a during call, we of was we've a an support authorized third last long-term we discretion, to use at purchase program, capital market at a price end, per of and repurchase share. Board shareholders. enhancement tangible provide value transactions can average the for To XXX,XXX $X approximately quarter return

XXXX certain Cambridge still our revising of billion potential for billion, results expected that XXXX. exclude we eight estimates sales are others. $XXX are we Turning revenues for in maintaining $X.XX acquisitions months in now other including complete any may approximately to restaurant approximately total of to to guidance, items $X.XX be while XXXX. million These Total

acquisition to Comparable expected X% costs. still administrative integration expenses to to to increasing expected million restaurant costs million, $XX are costs the X% and which still and expected stock to are General beef X% increase sales compensation still year. the excludes year. X% for to to X% and Commodity X% expense $XX increase for with be are

fully the corporate integrate, of the Cambridge expect We the end to also year. -- by fully functions we

of unchanged other second $XX.X million million to to for quarters negative and previous earlier. EBITDA EBITDA discounts third on $XXX Our of the excess adjusted remains guidance sales $XXX discussed in due than impact adjusted million of the the

more XX was -- previously new for in to now nine are expenditures expected to than we million to million $XXX of $XX restaurants. to which new are and result, which XX And as restaurants Burger million construction King a XX million Popeyes $XXX $XXX We previously to $XXX capital million, restaurants $XX QX the to guided. be million, this includes building

XX XX plan and Burger a XXXX Popeyes also -- remodel four in restaurants. total We restaurants King to approximately of

previously is to XXXX million $XX remodels certain XXXX. $X in Proceeds for be XXXX from contribution an now approximately CapEx $XX are $XX million million. sale landlord of million received guidance leasebacks $XX to be gross related Our to to million expected to

through Finally, areas, that to trade including restaurants were restaurants, end respective we quarter. expect relocated XX close third which to closed of XX of have in up the the their two Burger and King already

concludes prepared That our remarks.

and So with the up that, operator, questions. open lines for ahead let's go

Operator

this be go a Please ahead. Jake first At conducting [Operator session. you. Instructions] Your Bartlett Thank time, question-and-answer SunTrust. from we question comes will with

Jake Bartlett

Thanks. like to Paul's I'd passing. condolences first just for express my

I think, of And with work did I guy. the he rest we great was appreciate think community the us. a he the really investment

on it Whopper $X, And that my $X, of so, Dan, And really really this first small to my of explain was? the you And excess with understanding discounting. question is inside. kind it is kind just clearly just came that related can And if drink $X, what promotion.

any offering didn't those, you're you related traffic. size And a see for in but boost

right could then If be you just clarify that that wrong, is or understanding that helpful? would

Dan Accordino

close, when to we pretty medium for Jake. large. what trade -- $X typically $X a attempt That's a include which we Yeah. to people any $X items, promotion, or quantity, induce doesn't promotion to or a run The is ancillary higher we do up for two

Whopper a to for $X. and at only $X, for I Whopper a trade purchased to drink, -- intended people value value a a was Whopper a promotion did was double at induce up. at to and attempt be or we $X This a meal fry, mean Junior value What

happened we do a up meal. this, a therefore what because value with typically with you end don't discount, And double was

we value the And Our meals discounted. by handled this. already are way,

You further was essentially up value meal a ended on discounted. discount already with that a

So, had you of if additional meal, we discount you a $X.XX off top an discount, value on that. gave

systems a mistake. an was a not not it It strategy. was not issue. issue. It accounting a was was So successful It

because fair I happened We saw margins, screwed amount after world said, cost the I us contacted Burger in when the outperformed of it system?" and the "What and up. QX a we And money. always King here, And

looked of $X system. a compared the incidence to we to in sales. And nor them, of were $X, And increase everybody. shouldn't we some and discount We and giving a with get rest corresponding them, did our with analysis the we essentially at have $X and some research traffic, didn't

Jake Bartlett

And of the boost to didn't feel impact? confident kind confident Or it you you're your you feel out that, how traffic? tease of able

Dan Accordino

we and the we of it balance King analyzed -- as I $X incidence down here. same the analyze exactly three looked $X our system. ways was -- of separately. And Burger the different have We Yeah. did And in $X,

people drink, didn't discounts. was a those was people took in it any So of as buy value who to and the terms a we otherwise giving were didn't traffic with advantage promotion get it which value to additional And discounts intended, at of who fry actually that expect from we all.

Jake Bartlett

Got it and then, think... I

Dan Accordino

on the is focused mistake. And business it numbers a dealing is we think, reflect. of error. issue The good. the was screwed we was the lot it this I what than And underlying business Jake stronger a fact fact is spent is, convoluted mistake. up. be onetime very that's a the time what is We The of that should underlying matter our with

Jake Bartlett

I you end I Got could helpful October strong be appreciate to quantify you already your would results if the it performance that maybe it, that. in And September. in think, obviously because stated

also think in would just I'm been a how lapping I maybe Hurricane that correct more has but think, I the clean? trends helpful hear October Florence be was to little which are, if it

Dan Accordino

is trending to system. with than it's we what the expected and -- compared was had the strong October also balance of very consistent higher

Jake Bartlett

be it Would number than that disclosed? September Okay. you've stronger

Dan Accordino

but in still Not the to delta. No. an the system adequate terms -- of there's balance terms same-store relative of of in sales,

Jake Bartlett

it. Got

Dan Accordino

if No X%. look to of at I when QX you the -- look you embedded think, in comps X% at guidance you're annual sales Jake, the where going it's

Jake Bartlett

Got it, okay.

Dan Accordino

right. All

Jake Bartlett

trying helpful. lastly, Yeah. That's really just to... And then, just

Dan Accordino

the sure, do I I'm did? release press not You because understand Jake,

Jake Bartlett

No.

I I think, finally think, -- I'm it. I'm getting

starting it I'm think now. get I to

it. helpful. appreciate very I It's So

I can the just margins me, on drag better understand stores. if the I wanted for Cambridge see Lastly from to

would do of kind math be their maybe to margins you it a provide were as helpful number really Or we see what it versus kind that a could of the drag what yours? quantify was. could you If there's to could if

But those the to answer. just at to if I in also understand that expect to I stores see improve how could you then the wanted get quarters? And margins quickly coming

Dan Accordino

margins you of Tim, the terms And the can were. in improvement. then, our give I'll is you what expectation what tell

Tim LaLonde

not standpoint Yeah. The Cambridge significantly. the our sales nearly stores impacted that are performing margins quite and well from same-store a as restaurants as legacy

costs. weeks. have beginning are next we lot labor will POS in the recognizing We -- some mentioned, training... which -- done a also in those benefits once those the have And food our complete be opportunity couple installations of we still as release added of be we for in we here -- will And then, we

Dan Accordino

But included he that's what was the margin three, asked? the in what

Tim LaLonde

that up answer. looking He's

Dan Accordino

Right.

Tim LaLonde

The -- about as sales Jake, XXX restaurants to a basis between in the and cost far there's now as the Cambridge improvement our legacy stores. right of point XXX delta

Now quantify systems we've to our have we that in own that. POS able been

of half things is expectation will the And of end the end mid-XXXX. the we that year making that Labor the on cost be by with need be to legacy we're and QX. of by be of will by restaurant target sales Our XXXX. on corrected that be improvements make modifications the already of target will those

the is improve increase the we're labor between and where an the the to which needs legacy comp Cambridge that's sales delta really because why sales is it we're What to on restaurants. adding issue now store not currently sales the right and operating focused terms sales be primarily in is of

competitive those added again mid-XXXX team a staffing. in restaurants by be we've We've we member And shape. management that And the would staffing. added will expect

Dan Accordino

million, contribution at restaurant and was margin Popeyes King to minimis, EBITDA X% about was Jake. a and Burger between, for if Yeah. Jake, it X%, $X.X de our the

Jake Bartlett

Got much appreciate it, thank you it. I very

Dan Accordino

you. thank Well

Operator

you. Thank

ahead. Inc. from from Your Will question comes Stephens next go Please Slabaugh

Will Slabaugh

business throughout But the I noise was you of lot Thanks as you in work the describe wondering would quarter? know momentum underlying the of Yeah. there's how guys. the a quarter. I

the mentioned call, you in on there you but that's up X.X% know so July adjusted or were think, I I I'm number. an was -- assuming And last not

So quarter three how of you throughout sort curious, would the the describe work the just months? we of cadence as

Dan Accordino

a part on last forecasted year our were expect it is QX be because on as lapping got little month we bit that Jake we much of – each while the sales expected our And went consistent easier. had and that got with the We call. as we stronger numbers stronger ended is And QX QX note. quarter expectations. also will our on a we trend But

Tim LaLonde

item was benefited the September which to to our going sales be of Impossible from appeared thought Whopper launch XXX% it at do. what we it did almost rest the looking And incremental. the of menu

Will Slabaugh

beyond a have are I if thinking today follow-up announced? earnings the How when curious thoughts power I'm was any just you and changed for Great business had about well. that and there? Cambridge of as the acquisition versus XXXX

Dan Accordino

about no. still optimistic I'm No, No, Cambridge. very

knew that operations. will to things fact operations that the real we be were not we which we strong. And by you we the operating of the when real metrics rates in had that were the One leverage. we improve improve can wage opportunities sales strong was impressed the And the favorable had -- also the and that opportunity

offerings continue -- not Impossible that thing be one It's market. market of The those do two extent that we'll well have I well there's are terms consequently, learned is that to value-oriented a think And probably to as things that value-sensitive it's very can Whopper places the not a area focused things. it's other in responding we that we value surprising. in to and the in

Will Slabaugh

one then King and on I both Burger pipeline and Popeyes. if acquisition for the could question sense, Makes more plan and

stores Kings Popeyes you the pipelines I'm year-end. few a brands? had in general a few you all deals have by just those could or some there? talk rather both or hoping curious for close you're about you You if to Burger if And mentioned -- in are

Dan Accordino

a matter quarter We on in the XXXX. we we that as will year in with. XXXX the will We're speak and issues with we fact in few a this have of dealing contract Kings in acquisition closed of and Popeyes have we a significant first negotiation are deal as that Burger close

at quite as XXX, that as acquisitive with we continue to the is both still the that new-build well in XXX, strong. of in that will So opportunities. be Popeyes -- and QX we'll acquisition brand brands And our continue pipeline be XXXX expectation by is

Will Slabaugh

you. thank Great,

Operator

question Please from next Thank you. Your ahead. Instructions] [Operator Brian Vaccaro with Raymond go comes James.

Brian Vaccaro

morning. good on a sales unit to circle very through product a for trended color just and the Could perhaps and provide how strong Whopper. or quarter you launch. back on wanted into Thanks the little demand Obviously more product I October? the Impossible

Dan Accordino

trend been stable. XX units be We've trend. appears per to over as continues past is XX And to at not be and pretty running is Tim The impacted all. XXX% to at Whopper because it day several negatively sales incremental the the weeks it Whopper Impossible indicated that our SKUs on

Tim LaLonde

If you but depending look per demographic day to very -- the our in per within the the store as averaging Dan mentioned counts greatly on system XXs. we're

Brian Vaccaro

Okay. Cambridge obviously both and discounting that issue units? legacy the identified did and the promotion the impact And that units issue,

Dan Accordino

just legacy No restaurants. the

Brian Vaccaro

Just versus that excluding the at about I the Did Cambridge to And assumption of EBITDA. Dan $XXX guidance just wanted can million that's ask updated all you piece. talk legacy, then million change I about in to quarter? the last your adjusted discounting guess okay. $XXX embedded

Tim LaLonde

I be, before I improvement think the way EBITDA. that in would restaurant think on to slight the of as mentioned a margins the

Brian Vaccaro

So little those margins expect versus prior a on guide your higher units? you

Tim LaLonde

what third referencing. the from was sequentially No it quarter was I

Dan Accordino

No guided it's what Brian. previously with to we consistent

Brian Vaccaro

far? land the buying it bit And And on growth? for the on little proceed sale then up so sounds future Dan change of incremental some there? sort elaborate you like build what can organic was the right. All leaseback a Okay. year-to-date it that

Dan Accordino

the Burger that the real the Popeyes Cambridge in opportunities were it and deal that. opportunities first of already were King restaurants and part Yes pipeline the when estate. there owned was answer me we Let some did

in things on we part sale transactions here transactions able terms leasebacks bank We're five right sale-leaseback the leaseback the of what multiple So about restaurants to pace in those and in or more now of got now? fourth of -- the with issue. a quarter included. dollars, some that's to Right have in in were build currently four close $XX rapid QX different we million expecting about sale in

Brian Vaccaro

in the the I then of I think part guess you versus into Popeyes to about year year. you last you the might talked early debt the there the And noticed little a -- to amendments you're of sort that acquisitions? Dan, opportunity balance bit, And next Okay. close I how about acquisition just next million. balancing one guess thinking noticed sheet was it capacity or is unit provide are $XXX growth I pursue an organic funding? additional expected I

Dan Accordino

Yes.

is am yes, of leverage how of I looking this? your alternatives those very that think good pay and going for in will get at to be in to we're and we're process up And the question we're be pretty consequently I locking currently And need financing shape terms. that we X financing we'll of the times. favorable terms that confident able at our south in

Brian Vaccaro

Popeyes color any And range? on a the Okay. the multiple even on units

Dan Accordino

$X It million. million and will be between $X

Brian Vaccaro

Store level EBITDA?

Dan Accordino

Yes.

Brian Vaccaro

you. Thank

Operator

have management We remarks. the end session. the question-and-answer to over team for now closing reached of the will And I turn the call

Dan Accordino

Yes.

So this Dan... is

Operator

follow-up a question SunTrust. Bartlett have we Jake of from Apologies do

Jake Bartlett

snuck thought. it sooner in ending there. I just was I It

Dan Accordino

made just Jake. you Well it

Jake Bartlett

know. I

I to you just pin little a again bit maybe want So this more. on down

X% is you guidance to fourth As -- and range X% quarter I about kind fourth when look guidance, think just implied at of the the look at quarter. the for it's wide the I pretty

more look you're I to you any that quarter... on last think to going color So where range fall as, in

Dan Accordino

At the high end Jake.

Jake Bartlett

much. Okay. Great. Thanks so

Dan Accordino

Yes.

what As is want issue. to difficult comment it's around for a restatement It apologize to say I just was think make on. mistake the not strong. issue. what an It's focus very And think accounting add-back that's underlying investors business and our was the I final discounting everybody -- like is It It's a is I I understands. this And Dan, a explain. this again what And issue. I sure that It's an not we not would confusion that's issue. focus to on.

you in February. thank you and to So we'll talk

Carrols Restaurant (TAST) 10 Nov 192019 Q3 Earnings call transcript