Carrols Restaurant Group, Inc. (NASDAQ:TAST) Q1 2019 Earnings Conference Call Transcript
May 08, 2019 • 08:30 am ET
Good morning, welcome to the Carrols Restaurant Group First Quarter 2019 Earnings Conference Call. At this time, all participants are in listen-only mode. Following the presentation we will conduct a question-and-answer session and instructions will be given at that time. I'd like to remind everyone that this call is being recorded today, Wednesday, May 8, 2019, at 8:30 a.m. Eastern time, and will be available for replay.
I will now turn the conference over to Paul Flanders, Chief Financial Officer. Please go ahead, sir.
Paul R. Flanders
Good morning. By now you should have access to our earnings announcement released earlier this morning, which is available on our website at www.carrols.com, under the Investor Relations section. Before we begin our remarks, I would like to remind everyone that our discussion will include forward-looking statements, which may consist of comments regarding our strategies, intentions, guidance and plans. These statements are not guarantees of future performance, and therefore, undue reliance should not we placed on them. We also refer you to our filings with the SEC for more details, especially the risks that could impact our business and results.
During today's call, we will discuss certain non-GAAP measures that we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles. A reconciliation to comparable GAAP measures is available with our earnings release.
With that, I will now turn the call over to Chairman and CEO of Carrols Restaurant Group, Dan Accordino.
Daniel T. Accordino
Thanks, Paul, and good morning, everyone. Before discussing the first quarter, let me start by saying how excited we are to have closed the Cambridge deal on April 30, a transaction that we believe will prove to be transformational for us. To summarize, we acquired 165 Burger King and 55 Popeyes restaurants across 10 Southeastern states, and a tax-free merger with Cambridge Franchise Holdings. We now operate 1,010 Burger King and 55 Popeyes restaurants in the 23 states. Along with an expanded and more diversified restaurant footprint, we believe this transaction positions us well to continue with executing our acquisition and expansion strategy and provide several avenues for future growth.
We significantly expanded our Right of First Refusal on our ROFR and are preapproved for the acquisition of 500 additional Burger King Restaurants under a new area development and remodeling agreement with Burger King Corporation. This agreement extends our ROFR territory to Arkansas, Louisiana, Mississippi and Tennessee. As previously disclosed, we relinquished our ROFR rights in the seven states where we are not actively expanding. We also agreed to develop 200 new Burger King Restaurants over the next six years and to remodel or upgrade a number of our existing restaurants, more restaurants to be acquired for the Burger King of Tomorrow image.
Lastly, we now have a complementary growth platform in Popeyes through the merger, we assume Cambridge's development agreement with Popeyes, which includes the ROFR for acquisitions in Tennessee