Sonic Announces 6.1% Same-Store Sales Growth for Third Fiscal Quarter of 2015
Business Wire Sonic Corp.
June 22, 2015 4:01 PM
OKLAHOMA CITY--(BUSINESS WIRE)--
Sonic Corp. (SONC), the nation’s largest chain of drive-in restaurants, today announced results for the third fiscal quarter ended May 31, 2015.
Key highlights of the company’s third quarter of fiscal year 2015 included:
Net income per diluted share was $0.38 compared with net income per diluted share of $0.30 in the prior-year period; excluding tax adjustments of $1.1 million, or $0.02 per share in the third fiscal quarter of 2015, earnings per share would have been $0.36, an increase of 20% from the prior-year same period;
System same-store sales increased 6.1%, consisting of a 6.1% same-store sales increase at franchise drive-ins and an increase of 5.5% at company drive-ins; and
Company drive-in margins improved by 100 basis points.
“We are very pleased with our strong sales and financial performance driven by a healthy mix of traffic and check,” said Cliff Hudson, Sonic Corp. CEO. “Our results are especially noteworthy given our strong results from the same quarter prior year. New product news in key categories, effective media and a layered promotional strategy are expected to continue to drive our sales in the near term. Technology initiatives designed to provide a more personalized and customized customer experience are also expected to complement our product and media initiatives and drive sales over the next several years.”
The strategies noted above will continue to drive Sonic’s multi-layered growth strategy which is comprised of initiatives to increase same-store sales, profits, royalty revenues and unit growth. Optimizing shareholder value by deploying free cash flow1 to invest in the brand, quarterly dividends and repurchase shares continues to be a key focus.
sonic advertised half price shakes after 8pm. we pulled into the stall in texas and ordered one and an order of tots for which I had a free birthday coupon. The menu had a shake section which flashed on for all of 15 seconds then went on to other items for a minute or two. meanwhile their blastopia ads shined brightly in my face and weren't half price, and are sort of expensive.
also it turns out, the shake my wife wanted was not one of the shakes they are pricing at half price.
someone had to come out to the car to correct the mess they made on pricing. btw, they charged the free tot coupon at $1.74 and had it up to about $7 total.
we ordered a small plain shake at 2.09 figuring it would be about 1.05 plus 8% tax, and the tots would be free with my birthday surprise coupon. not so, still showed a shake at 2.69 plus tax and tots at 1.74.
I pointed this out to them and it became clear they couldn't do something that simple and about six people seemed to be discussing it in their kiosk, so we gave up an drove off, embarrassed for them.
don't know how the stock got this high I had it for years at about 10. it never went much higher than that even though I ate there all the time.
I may be stopping there less in the future.
huh? would you like to try that again? I hope you and yourdangtootin bought the march dip with both fists... lol
Carbon copy of the last quarter's price action upon the earnings announcement.
Same store sales were still up at a healthy clip, new stores being opened, unseasonable cold weather during the quarter for this drive-in restaurant, all other numbers in line with expectations, and the stock gets tanked to the tune of double digits.
Good time to add to my position, me thinks.
I agree, but look at the garbage MCD serves and their stock is still in the 90 range and growth (or lack of) is just hitting them now.
Appears to me so I bought here for a speculation back over $31 soon.
Even if the quarter could have been better the 11% punishment is a bit much. I say it closes over $31 today or tomorrow.
as much as i like the drive-in concept, a lot of the food is horrible. I can hardly choke down a sonic burger. I like their sides and drink selections and the frozen stuff is pretty good. I just see a hard time getting new customers with the quality of food choices
Just out this morning:
By Brian Sozzi | Jun 11, 2015 | 11:00 AM EDT
Keep an eye on the stock into the weekend -- sixth sense is you will hear some CEO comments shortly, potentially upbeat.
Note the company reports earnings on June 22. The stock was hit hard back in March on earnings that while still strong, slowed from previous quarters.