Sonic Corp. announced results for the first quarter ended Nov. 30, 2012, including a system-wide same-store sales jump of 3 percent. Company drive-ins were up 4.2 percent during the quarter, while franchised units increased 2.9 percent.

The company's net income per diluted share increased 22 percent to 11 cents compared with net income per diluted share of 9 cents in Q1 of fiscal 2012. Also during the quarter, company drive-in margins improved by 80 basis points and the company purchased $18 million of stock, representing 3 percent of its outstanding stock.

"We are pleased the momentum in our business continues to build with a strong start in fiscal 2013," said Cliff Hudson, chairman and CEO. "Sustaining positive same-store sales during the quarter was the result of our improved daypart promotional strategy and effective creative messaging, complemented by our long-standing initiatives to improve customer service, product quality and value perception."

Hudson added that Sonic will enhance its media purchasing starting this month, allocating a bigger budget to national cable. Sonic's "Two Guys" campaign, brought back after a hiatus, has proven effective for the company in recent months.

The company will also focus on the implementation of a new point-of-sale system within the next two to three years, as well as a smaller — lower-cost — restaurant prototype, which will "spur increased development," according to Hudson.

Across the Sonic system, one new franchise drive-in was opened in the first quarter of fiscal 2013 versus two new franchise drive-in openings during the first quarter of fiscal 2012. New franchise drive-in openings in fiscal 2013 are expected to be slightly higher than new franchise drive-in openings in fiscal 2012.

"We are confident our multi-layered growth strategy, which incorporates same-store sales growth, leverage from higher sales, deployment of free cash flow, increasing royalty revenues and new drive-in development, will enable us to achieve double-digit earnings per share growth in the near and long term," Hudson added.

Read more about operations management.

Related Content

User Comments – Give us your opinion!
  • raymond poelvoorde
    40062674
    what does the smaller Sonic unit look like
Products & Services

Cleaning Supplies & MSDS

http://global.networldalliance.com/new/images/products/6289.png

6289/Cleaning-Supplies-MSDS

Pressure Fryers

http://global.networldalliance.com/new/images/products/6279.png

6279/Pressure-Fryers

MVR Reports

http://global.networldalliance.com/new/images/products/MVR_Report_iix.gif

1252/MVR-Reports

AquaCafe

http://global.networldalliance.com/new/images/products/6965.png

6965/AquaCafe

Supply Chain Solutions

http://global.networldalliance.com/new/images/products/4269.png

4269/Supply-Chain-Solutions

Restaurant Digital Signage Advertising Network

http://global.networldalliance.com/new/images/products/6691.png

6691/Restaurant-Digital-Signage-Advertising-Network

LG 47WS50BS-B

http://global.networldalliance.com/new/images/products/6433.png

6433/LG-47WS50BS-B

LG 72WS70MS-B

http://global.networldalliance.com/new/images/products/6421.png

6421/LG-72WS70MS-B

Advanced Wireless

http://global.networldalliance.com/new/images/products/6635.png

6635/Advanced-Wireless

Open Fryers

http://global.networldalliance.com/new/images/products/6281.png

6281/Open-Fryers

CONNECT 2014 Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.