Analyst lifts Carrols Restaurant to 'Strong Buy'

NEW YORK (AP) — Shares of Carrols Restaurant Group Inc. climbed Friday as an analyst upgraded the Burger King's biggest franchisee on its appealing stock price.

Raymond James analyst Bryan Elliott said Carrols' stock fell about 10 percent Thursday from its opening price as investors worried that a price war might occur between fast-food burger chains.

Elliott said Burger King's announcement last week that it will sell quarter-pound double cheeseburgers for $1 starting on Oct. 19 indicates ongoing sales weakness in the fast-food restaurant group and could mean a price war is near.

But after Thursday's price drop, he boosted his rating on Syracuse, N.Y.-based Carrols to "Strong Buy" from "Outperform" and set a $10 price target.

The company's stock gained 53 cents, or 7.6 percent, to $7.41 in midday trading. Over the past year, the shares have traded in a range of $1.39 to $8.18.