4:06 pm Sonic beats by $0.02, beats on revs; reaffirms FY15 outlook (SONC) : Reports Q1 (Nov) earnings of $0.18 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 10.4% year/year to $139.9 mln vs the $133.45 mln consensus.
•System same-store sales increased 3.5% (in-line with estimates), consisting of a 3.5% same-store sales increase at both franchise and company drive-ins
•Company drive-in margins improved by 90 basis points
•While the macroeconomic environment may impact results, the co expects its initiatives to drive earnings per share growth in fiscal 2015 at the high end or slightly above its long-term 14% to 20% EPS growth target (vs. +18-20% previously)
•Reaffirms positive same-store sales in the low single digit range for the system;
•Reaffrms drive-in-level margin improvement of between 50 to 100 basis points, depending upon the degree of same-store sales growth at company drive-ins and commodity cost inflation
"Three executives at fast-food chain Sonic took 451,500 shares to the drive-through window to the tune of $8,258,686, an average of $18.29 each, from Sept. 17 to 26. Chairman, Chief Executive and President J. Clifford Hudson sold 300,000 Sonic"
Something wrong about this even if its legal. You cant have access for insider trading but insiders can trade. Should be some control on insider trading if revenue is going to miss especially right before earnings come out.