Carrols Restaurant Group, Inc. and Carrols Corporation Report Revenues for 2008 and Update Earnings Guidance

Company to Present at Two Upcoming Investor Conferences
SYRACUSE, N.Y.--(Business Wire)--
Carrols Restaurant Group, Inc. (Nasdaq: TAST), the parent company of Carrols
Corporation, today reported revenues and updated its earnings guidance for the
fourth quarter and year ended December 28, 2008.

Total revenues for the fourth quarter of 2008 were $200.8 million, an increase
of 1.8% over the fourth quarter of 2007, with comparable restaurant sales
increasing 1.2% at Burger King, 0.5% at Taco Cabana and decreasing 3.6% at Pollo
Tropical. Revenues for the full year of 2008 increased 3.4% over 2007 to $816.3
million, with comparable restaurant sales increasing 3.5% at Burger King,
essentially flat at Taco Cabana and decreasing 1.0% at Pollo Tropical.

Diluted earnings per share for the fourth quarter of 2008 are anticipated to be
between $0.19 and $0.21, with diluted earnings per share for the full year of
2008 now anticipated to be between $0.58 and $0.60 which is above the Company`s
previous guidance of $0.50 to $0.53 per diluted share. The revised guidance
includes certain non-recurring gains and losses, as discussed below, which in
the aggregate are expected to reduce earnings by approximately $0.02 per share
in the fourth quarter of 2008. These include gains from the Company`s open
market repurchase of its subordinated debt, impairment or closing charges for
certain underperforming restaurants and a gain from an insurance recovery for
its Galveston, Texas restaurant that was damaged during Hurricane Ike. Excluding
the non-recurring items, the Company credits its expected earnings improvement
in the fourth quarter of 2008 to an easing in commodity and utility costs, cost
reductions in a number of other areas, as well as the favorable impact of lower
short-term interest rates.

The Company indicated that it reduced its debt balances by approximately $48.2
million during the fourth quarter of 2008 from $361.5 million at September 28,
2008 to $313.3 million at December 28, 2008. The Company completed
sale/leasebacks for five restaurant properties during the quarter, with net
proceeds of $7.9 million used to reduce debt. During the period, the Company
also repurchased $13 million principal amount of its 9% senior subordinated
notes in open market transactions for an aggregate purchase price of $8.5
million, resulting in a gain of approximately $4.2 million, or $0.12 per diluted
share after taxes. In addition, during the fourth quarter of 2008 the Company
amended or modified certain provisions in leases for 25 restaurant properties
which were included on the Company`s balance sheet as Lease Financing
Obligations. The changes qualified such leases as operating leases and resulted
in a $34.5 million reduction in the Company`s debt balances. The balance of the
debt reduction resulted from the utilization of its cash flow from operations.

During the fourth quarter of 2008, the Company closed two Taco Cabana
restaurants and anticipates recording a charge of approximately $2.2 million
including fixed asset impairment charges of approximately $1.7 million as well
as accrued rent and other occupancy costs. The Company also anticipates
recording fixed asset impairment charges of approximately $3.1 million
associated with three Pollo Tropical restaurants in Florida based on a review of
those restaurant`s current and projected operating performance. The total fourth
quarter charge for impairments and the closed restaurants is expected to
approximate $5.3 million, or $0.15 per diluted share after taxes. Lastly, the
Company expects a gain of approximately $0.5 million, or $0.01 per diluted share
after tax, related to an insurance recovery for damages to a Taco Cabana
restaurant in Galveston, Texas during Hurricane Ike.

During the fourth quarter of 2008, the Company opened two Pollo Tropical
restaurants in the Northeast, three Taco Cabana restaurants in Texas and two
Burger King restaurants, one of which was a relocation of an existing unit. The
Company also closed four Burger King restaurants, including one relocated in the
fourth quarter of 2008 and one to be relocated in the first quarter of 2009, and
closed two Taco Cabana restaurants. As of December 28, 2008, the Company owned
and operated a total of 560 restaurants, including 315 Burger King, 91 Pollo
Tropical and 154 Taco Cabana restaurants.

The Company will provide additional details regarding its fourth quarter of 2008
and full year 2008 financial results during its next quarterly conference call,
which is planned for early March 2009. The financial results discussed in this
release are subject to completion of the annual audit of the Company`s financial
statements.

Alan Vituli, Chairman and Chief Executive Officer of Carrols Restaurant Group,
Inc. commented, "As stated previously, because of the uncertain consumer
environment, we are committed to reducing our financial leverage by lowering the
outstanding debt on our balance sheet. The objective of these actions has been
to ensure that there is more than an adequate margin of safety with respect to
the financial covenants in our senior credit facility and to provide investors
with a greater degree of confidence in our ability over the long term to realize
growth in shareholder value. While our actions taken thus far have significantly
addressed this issue, it is the Company`s intent to continue to make lower debt
levels a priority. Among other things, this will mandate a reduction in our
capital expenditures in 2009 relative to 2008 as previously discussed. With
regards to the fourth quarter of 2008, we were somewhat pleased with our
performance, as we benefitted from effective cost management which enabled us to
exceed our bottom line expectations despite somewhat softer sales results. We
also look forward to more favorable conditions when the broader environment
improves."

Upcoming Investor Conferences

The Company will participate in two upcoming investor conferences this month. On
Tuesday, January 13, 2009 at 11:30 AM ET, the Company will present at the Cowen
& Company 7th Annual Consumer Conference at The Westin Times Square in New York
City. On Wednesday, January 14, 2009 at 11:25 AM ET, the Company will present at
the 11th Annual ICR XChange at The St. Regis Monarch Beach Resort & Spa in Dana
Point, California. Both presentations will be webcast live from the Company`s
website at www.carrols.com, under the investor relations section.

About the Company

Carrols Restaurant Group, Inc., operating through its subsidiaries, including
Carrols Corporation, is one of the largest restaurant companies in the United
States. The Company operates three restaurant brands in the quick-casual and
quick-service restaurant segments with 560 company-owned and operated
restaurants in 16 states as of December 28, 2008, and 28 franchised restaurants
in the United States, Puerto Rico and Ecuador. Carrols Restaurant Group owns and
operates two Hispanic Brand restaurants, Pollo Tropical and Taco Cabana. It is
also the largest Burger King franchisee, based on number of restaurants, and has
operated Burger King restaurants since 1976.

Forward-Looking Statements

Except for the historical information contained in this news release, the
matters addressed are forward-looking statements. Forward-looking statements,
written, oral or otherwise made, represent the Company`s expectation or belief
concerning future events. Without limiting the foregoing, these statements are
often identified by the words "may," "might," "believes," "thinks,"
"anticipates," "plans," "expects" or similar expressions. In addition,
expressions of our strategies, intentions or plans are also forward-looking
statements. Such statements reflect management`s current views with respect to
future events and are subject to risks and uncertainties, both known and
unknown. You are cautioned not to place undue reliance on these forward-looking
statements as there are important factors that could cause actual results to
differ materially from those in forward-looking statements, many of which are
beyond our control. Investors are referred to the full discussion of risks and
uncertainties as included in the Company`s and Carrols Corporation`s filings
with the Securities and Exchange Commission.

Carrols Restaurant Group, Inc.
Investor Relations:
800-348-1074, ext. 3333

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