Results of franchisee Carrols' a troubling sign for Burger King

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Carrols Restaurant Group Inc., the largest Burger King franchisee, provided the first official glimpse into the No. 2 burger brand’s latest sales trends, and it wasn’t good.

While analysts and observers have predicted that Burger King sales trends would suffer in its latest quarter ended in June, Carrols reported Monday that same-store sales at its BK units fell 4.7 percent for its quarter ended June 2, versus the same quarter a year ago, when same-store sales rose 5.9 percent.

The negative result is the latest evidence — following negative same-store sales at Sonic, Carl’s Jr., Hardee’s and Arby’s — that fast-food chains are suffering from the domestic recession and reduced consumer spending just like their full-service competitors have. In addition, deep discounting among quick-service chains, from $1 items to $5 meals, have hurt sales, dropping the check averages even if boosting traffic.
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