Sonic Corp. (SONC), the nation’s largest chain of drive-in restaurants, today announced results for the first fiscal quarter ended November 30, 2014.
Key highlights of the company’s first quarter of fiscal year 2015 included:
• Net income per diluted share was $0.18 compared with net income per diluted share of $0.14 in the prior-year period; excluding items outlined below, net income per diluted share was $0.13 in the first fiscal quarter of 2014, resulting in a 38% increase on an adjusted basis;
• System same-store sales increased 8.5%, consisting of an 8.5% same-store sales increase at franchise drive-ins and an increase of 7.9% at company drive-ins;
• Company drive-in margins improved by 70 basis points versus the first quarter of fiscal year 2014;
• 13 new drive-ins opened; and
• The company repurchased approximately $20 million of stock and paid its first-ever quarterly dividend of $0.09 per share.
“We are extremely pleased with our performance in the first quarter and believe that our focus on innovative products, increased media effectiveness and a layered day-part promotional strategy were instrumental to our continued success,” said Cliff Hudson, Sonic Corp. CEO. “Our business momentum remains strong as improvements in core menu items combined with limited-time-offer promotions are driving our same-store sales growth. Further, we expect our technology initiatives will provide an additional layer of growth to build sales and profits over the next several years.
“Our focus continues to be on our multi-layered growth strategy, which is comprised of initiatives to drive same-store sales growth, improve margins, increase royalty revenues, new drive-in development and deployment of free cash flow1.
Sonic Reports Strong First Quarter of Fiscal 2014 Financial Results
Business Wire Sonic Corp.
9 hours ago
OKLAHOMA CITY--(BUSINESS WIRE)--
Sonic Corp. (SONC), the nation's largest chain of drive-in restaurants, today announced results for the first fiscal quarter ended November 30, 2013.
Key highlights of the company's first fiscal quarter included:
The company's net income was $0.14 per diluted share compared with net income per diluted share of $0.11 in the first quarter of fiscal 2013;
Excluding the benefit from a favorable tax ruling detailed below, net income per diluted share for the first quarter of fiscal 2014 was $0.13, an 18% increase in earnings per share on an adjusted basis compared to the same period prior year;
System-wide same-store sales increased 2.2% during the first fiscal quarter, consisting of a 2.3% same-store sales increase at franchise drive-ins and an increase of 1.9% at company drive-ins;
Company drive-in margins improved by 80 basis points; and
The company purchased $7.5 million of stock as part of a previously announced $40 million share repurchase program.
“Fiscal year 2014 is off to a solid start as we focus on key initiatives such as increased media effectiveness, our innovative product pipeline and layered day-part promotional strategy to drive same-store sales growth and, in turn, margin improvement,” said Cliff Hudson, Chairman, Chief Executive Officer and President. “During the first quarter we built on our solid foundation of service, products and pricing with increased media effectiveness, which is having a positive impact across all markets. We also continued to have strong promotions during the quarter with the continuation of the Summer of Shakes promotion into September, our new Spicy Chicken Sandwich and our popular Cheesecake Bites.