A Software Error Costs This Burger King Franchisee $8.3 Million
Carrols Restaurant Group (NASDAQ: TAST), a large franchisee of Restaurant Brands International's (NYSE: QSR) Burger King and Popeyes, reported earnings on Nov. 7, and Wall Street didn't like it. Carrols shares sold off more than 10% due to a net loss of $0.09 per share. This loss was a major disappointment since quarterly revenue was up more than 34% year over year (mostly due to a merger) and comparable-restaurant sales were up a healthy 4.5%.
It should have been much better for Carrols, but the company made a mistake -- one that accidentally discounted $8.3 million in food -- overshadowing an otherwise stellar comps gain and erasing all profits for the quarter.
Image source: Getty Images.
Source Fool.com
