BK franchisee Carrols' 2nd-Q income triples

Nation's Restaurant News, August 28, 1995 by Richard L. Papiernik

SYRACUSE, N.Y. -- Burger King's largest franchisee, Carrols Corp., reported that net income of $2.18 million for the second quarter, ended June 30, was triple its year earlier quarterly income of $724,000. Revenue of $58.8 million increased 17 percent from $50.2 million.

In a turnaround for its six-month performance, the company reported an earnings gain of $1.15 million vs. a $2.49 million loss in the year-ago first half. Corporate revenue increased 18.6 percent, to $110.2 million from $92.9 million. From June 1994 to June 1995, the company opened 17 new Burger King units, bringing its total to 219. Its comparable-store sales for that period were up 6.2 percent.

In its current attempt to generate significant cash flow, the company is "focusing our energies exclusively on the development and acquisition of Burger king restaurants," according to Alan Vituli, chairman and chief executive of Carrols.

With the full focus on Burger King, development plans for its other restaurant companies, Vituli stated, "have been put on hold."

He added that Burger King's 6,000 U.S. restaurants, its Whopper brand recognition and marketing budget of $250 million provide the chain with "the qualities to take on any competitor, no matter how formidable."