OKLAHOMA CITY — Sonic Corp. has updated its sales expectations for the second fiscal quarter ended Feb. 28. Estimated systemwide same-store sales for the quarter, the seasonally slowest period of the year for Sonic, are expected to decline 3 percent to 4 percent, with same-store sales at partner drive-ins (those drive-ins in which the company owns a majority interest) declining 5.5 percent to 6.5 percent.
Excluding the estimated 1 percent effect on sales from one less day in February 2009 versus February 2008, sales and traffic trends improved throughout the second quarter. The company believes this improvement was attributable to the introduction of Sonic's Everyday Value Menu at the end of December, which has had a positive impact across multiple dayparts. The company anticipates the success of the Everyday Value Menu, augmented by limited-time offers for premium products intended to increase the average check amount, will improve sales trends in coming months.
Sonic also announced that during the second quarter it purchased approximately $25 million of its $559.5 million of Class A-2 senior notes using proceeds from the company's ongoing refranchising initiative. The purchase of these notes at a discount will result in a gain for the second quarter. Sonic intends to use proceeds from its refranchising efforts, as available, to reduce indebtedness or for other stockholder-value initiatives.
Sonic plans to report its second quarter results at the market close March 23. The company will provide a Web simulcast of its earnings release conference call that afternoon beginning at 5 p.m. Eastern time. During that call, management will comment on Sonic's financial and operational results for the second quarter of fiscal 2009. An online replay of the conference call will be available approximately two hours after the conclusion of the live broadcast and will continue through April 23, 2009. A link to the events will be available at the investor section of the company's Web site.
Sonic Corp. executives will participate in the Bank of America and Merrill Lynch 2009 Consumer Conference, which takes place March 11-12 in New York City. The investor presentation by Sonic's management is scheduled for 11:30 a.m. Eastern time March 12, and will be available to investors via a live audio webcast. A link to the webcast can be found at the investor section of the company's Web site, and will be available for replay through March 27, using that same link.
Corrected March 10.
