We are investigating Carrols Restaurant Group, Inc. (TAST) (“Carrols” or the “Company”) for potential violations of the federal securities laws.
On February 25, 2020, Carrols issued a press release reporting its financial results for the fourth quarter and full year ended December 29, 2019. In the press release, Daniel T. Accordino, Carrols’ chairman and Chief Executive Officer, reported that “comparable restaurant sales growth for our Burger King restaurants was at the low-end of our annual expectations and full year Adjusted EBITDA relative to 2018 levels was adversely affected by several factors, including increases in commodity and labor costs and the excess sales discounts to certain customers over a ten week period last summer.” On this news, Carrols’ stock price fell sharply, damaging investors.