I mean seriously, have you read some of their posts? Boogers and poop in the burgers? I can't believe I wasted my time reading some of those posts. I'm here to tell you, here in the sunny south, Sonic is doing great. I've seen new locations pop up all over, during the economic downturn from 2008-present. And no, they aren't empty, quite the opposite. We in the south love Sonic, and there are plenty of southern consumers to keep this 60 year old company hoppin'.
Indeed. But they are mostly franchised out. The biggest problem is debt for the company. They need to buy back bonds instead of stock. At even a mere 4% the cost around 20 million a year that they pay. That would be a gain 40% of earnings if they cut that in half. It would be wise to wait because interest rates are likely to rise which means bonds will be cheaper in a few months to a year. But this would maximize shareholder value more than a buyback.
Finally, a couple of real posts. They talk truthfully about a company by its product and financials. I like to eat here also. And FCF will take care of debt as long as they continue what they're doing. I agree stock buyback should play second fiddle to debt paydown. GL2ALL