Majority of stores, franchises, are not growing sales at all. Company stores barely growing (why the difference?). New store openings growth at a paltry 1.1%. Horrible $27,000 per store profit. Bottom line a company that is not growing is not worth a 40 P/E.
If this was valued like MCD it would be about $5.50/sh, but MCD is performing better, and sports a 3% div. Where SONC could do better as an investment is growth in store count as it is a fraction the size of MCD. But it isnt. Bottom line is flat and store count growth is projected to be only 1.1% next year. If the whole thing aint growing, why own it? If this got brought down to a 8-10 P/E like many no-slow growth companies you are looking at$2.50-$3.00/sh.