Going Short on SONICS.
1. Bad business model, drive-ins attract
teenagers who order alittle and stay
a long time.
2. High Valuation over 20 times 2007 eps
3. Worst commercials ever, plus I live
in Pennsylvania where there are ZERO
sonics yet I see there commercials all
the time. What a waste of advertising
Working against the shorts, momentum and
novelty. Could go over $35/share if they
beat .21/share this quarter.
I prefer to have my food made fresh and fast like sonic does. Until you try it I guess you will never know. I am normally happy with my visits not like some of the others that are hit and miss.
In beef country? At a school with a major Ag school? No way!!!
Sonic and the near-campus bar just happened to be my favorite places to go for burger because they happened to be the best.
Third choice was another drive-in that had carhops and sold beer, but their food wasn't as good. But they did have "liquid bread," the life-blood of college students (LOL).
I think someone has turned the chart upside down on you. This stock and company has had tremendous success. Just take a look at its growth and its splits. You better turn the chart back around, friend!
I agree... look at a five year chart if you want a true indicator of just how well this mid-cap stock has done. It broke through an intra day 52 week high and spring has just arrived! Still growing and expanding. They have a wonderful business model. In our fast paced world, where everyone is in such a hurry,(me included) it's nice to revisit an old friend. You pull up into your parking spot and that wonderful aroma greets your nose! Your food arrives promptly and a cute carhop brings it to you with a smile. I have yet, to meet a carhop at my Sonic, that wasn't having fun. Gettin' paid, to deliver food, on roller skates? Cool! A reminder of simplier times, a slice of Americana, with a wonderful balance sheet to match!
Love this company and love their food! Don't like the commercials? I'm guessing that you are probably an older gentleman? The commercials are not geared toward you. I am in the North Texas area. We have a Sonic, 5 minutes from our home. We have to have a Sonic fix at least once a week. Don't see many teenagers there but I do see affluent baby boomers, with SUV's, ordering for the kids... and themselves.
The burgers are to die for... very distinctive taste and the chicken strips are REAL chicken. The banana shakes are AWESOME! My position in Sonic restaurants has treated me very well over the years. It has split twice in recent memory. My only regret is that I didn't buy this stock 10 years ago. As I stated above, it has been one of my best performers. I'd eat there even if I didn't own the stock! You've never eaten at Sonic? That my friend, is your loss. It's not just good... it's Sonic good.
Honestly, you need to get to a Sonic! They have great food, good prices and an interesting store layout.
Have you ever noticed how many people eat in there cars rather than the fast food restr. they purchased the food at?
It wouldn't make since for Sonic to move into PA sadly because it is too cold.
This is all anedotal, but eat at Sonic when you go south or west, you'll enjoy it. :-D
I think your message subject says all we need to know about your post. I do get a chuckle when I read something from someone who admits they don't know what they are talking about.
I am not refering to the financials, which work in a similiar method for all businesses, but to admit you have never eaten at a Sonic and then authoritatively speak on who the customer is does not seem wise.
I do eat at Sonic alot and I see a huge spread of demographics from families with small kids to older consumers. Yes, there are a lot of teens, especially at the Sonic close to the high school. But they tend to buy alot of drinks and snack foods (like fries) which are amoung the most profitable items on the menu.
The biggest advantage to eating at Sonic is I don't have to listen to people on cell phones, screaming babies, loud conversations, etc. because I just roll up my windows.
As to the advertising, based on what I know about network cable, the cost of covering the whole country is so inexpensive, the "waste" of going into areas with no Sonics is no problem.
As a matter of fact, these "wasted" spots may be helping to create a demand in the future when Sonic decides to enter a new market.
Finally, as to the commercials, at first I thought they were stupid, but I now love them. I think they are funny and to the point. I really like the husband/wife team. They crack me up.
I apologize for the length of this post, but I feel strongly about this. Thanks for wading through this novel.