Carrols Restaurant Group Inc

October 4, 2019

Carrols Restaurant Group, Inc. (TAST) – Buy

Jeremy Ryan Burger King, Carrols Restaurant Group Inc, popeyes, QSR, TAST 0

Once again, I added more to my position in Carrols Restaurant Group, Inc. (TAST) today at $6.56 now making Carrols my largest position.

What I mentioned in the last post with my last purchase mostly still stands: (updated value per stored to $314k each)

The continued price drop is a great opportunity. The price drop is just making the company very cheap. At today’s price, the market is valuing the 1081 stores at only $314,000 each. To start a brand new store, you are typically looking at an initial investment of $1,200,000 to $2,800,000. These are mostly proven stores with excellent management in place.

The current price to book value is about half what it has averaged over the last 5-10 years. Carrols, is constantly increasing gross revenue and book value and future earnings potential while sacrificing short term net income, which I feel many investors are focusing too much on.

Adding the Popeye’s brand is also a great potential growth driver for the business especially with the popularity of the new new chicken sandwich. And Burger King’s Impossible Whopper seems to be doing quite well as well.

Some are thinking the economy is going negative. If that’s the case, people will still want to go out to eat. Carrols provides good food at great prices.

Here is my previous analysis: Carrols Restaurant Group, Inc. (TAST) – Buy

August 28, 2019

Carrols Restaurant Group, Inc. (TAST) – Buy

Jeremy Ryan Burger King, Carrols Restaurant Group Inc, QSR, TAST 0

Once again, I added more to my position in Carrols Restaurant Group, Inc. (TAST) at $6.90 now making Carrols my 2nd largest position.

The continued price drop is a great opportunity. The price drop is just making the company very cheap. At today’s price, the market is valuing the 1081 stores at only $287,122 each. To start a brand new store, you are typically looking at an initial investment of $1,200,000 to $2,800,000. These are mostly proven stores with excellent management in place.

Some are thinking the economy is going negative. If that’s the case, people will still want to go out to eat. Carrols provides good food at great prices.

Here is my previous analysis: Carrols Restaurant Group, Inc. (TAST) – Buy

December 14, 2018

Facebook Inc (FB), Carrols Restaurant Group, Inc. (TAST), and Amazon.com, Inc. (AMZN) – Buy

Jeremy Ryan Amazon.com, AMZN, Carrols Restaurant Group Inc, Facebook Inc, FB, TAST 0

Once again, I added more to my positions today in Facebook Inc (FB) at $144.41, Carrols Restaurant Group, Inc. (TAST) at $9.60, and Amazon.com, Inc. (AMZN) at $1587.31

The continued price drop in all three of these are a great opportunity. Retail sales are strong and Amazon and Facebook will benefit from this. Amazon with actual sales and advertising, and Facebook with advertising on Facebook itself and Instagram.

Amazon has been very aggressive with increasing it’s share of holiday sales and we are seeing that personally with our Wondermugs business. We have sold over twice as many mugs on Amazon this year compared to last year. With Facebook, we are personally spending significantly more this year on ads as well as for our clients of Advantage Creations.

With Carrol’s the price drop is just making the company very cheap. At today’s price, the market is valuing the 828 stores at only $729,773 each. To start a brand new store, you are typically looking at an initial investment of $1,200,000 to $2,800,000. These are mostly proven stores with excellent management in place.

Some are thinking the economy is going negative. If that’s the case, people still need to buy goods, will still use social media and go out to eat. Amazon and Carrols provide great prices on products. Facebook/ Instagram will still be used.

There are of course other pressures on these specific companies. Facebook with it’s privacy concerns, Amazon with other retailers getting more competitive and Microsoft with cloud services and Carrols with McDonalds, but I believe at these prices all of these concerns are priced in and then some.

Here is my previous analysis on all three: