Not sure, but I don't think it is justified based on their latest guidance for the year. Furthermore, I think they are over-optimistic about their new franchise royalties, which adds up to a substantial amount of revenue. I find it hard to believe that they will experience any significant franchise growth given the current credit barriers. Unlike their competitors, Sonic does not have the level of international sales to help offset a struggling US market.
I'm not bashing, just stating my opinion and yes, I am short.