Sonic Corp. has announced the results of its second fiscal quarter ended Feb. 29.
Key highlights of the report included:
- System-wide same-store sales increased 3.5 percent during the second quarter, with an increase of 3.6 percent at franchise drive-ins and a 3.1 percent increase at company drive-ins.
- The company's net income per diluted share was $0.03, compared to net income per diluted share of $0.07 for the second quarter of fiscal 2011; excluding a gain on early extinguishment of debt, net income per diluted share was $0.02 in the second quarter of fiscal 2011.
- The company opened 10 franchise locations during the second quarter of fiscal 2012 compared to five franchise openings in the prior-year same period.
“We are pleased with our second quarter results and believe they reflect our ongoing focus on improving our products and service,” said Cliff Hudson, chairman and CEO. “We believe a continued focus on innovative and distinctive products to drive sales across multiple day-parts, combined with our new creative strategy which was implemented at the end of the quarter, will continue to distinguish Sonic from the competition and will help drive more consistent and sustained same-store sales growth going forward.”
The company also introduced James O’Reilly as its new chief marketing officer.
O'Reilly officially joined the company in February. He most recently served as the chief concept officer of Einstein Noah Restaurant Group Inc.
Additional fiscal highlights
For the second fiscal quarter, revenues increased 1.4 percent to $115.1 million, up from $113.5 million in the year-earlier period. The increase was primarily comprised of improved same-store sales partially offset by a decline from the refranchising of 31 stores during the quarter.
The company's net income for the second quarter of fiscal 2012 totaled $1.7 million, or $0.03 per diluted share, compared to a reported net income of $4.3 million, or $0.07 per diluted share, in the year-earlier quarter. Excluding a $5.2 million ($3.3 million after-tax) gain from the early extinguishment of debt in the quarter ended Feb. 28, 2011, net income per diluted share was $0.02 for the second quarter of fiscal 2011.
Fiscal year 2012 outlook
The company expects its initiatives to drive positive sales going forward; however, uncertainty with regard to the external environment and its impact on consumer confidence may result in continued sales volatility. The company’s outlook for fiscal 2012 anticipates the opening of 30 to 40 new franchise drive-ins, and positive same-store sales; a 1 percent annual change in same-store sales equates to approximately $0.03 in net income per diluted share.
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