News

Product, promotion drives strong summer sales for Sonic

September 12, 2013

Sonic Corp. today estimated its systemwide same-store sales grew nearly 6 percent in Q4, which puts the company at positive 2.3 percent for the fiscal year ended Aug. 31.

The company attributes the growth to initiatives such as improved service and product quality, product pipeline, value perception, and increased media effectiveness.

The "Summer of Shakes" promotion featuring 25 different shake flavors and the limited-time offer featuring two new pretzel dogs were especially popular, according to a company press release.

However, food costs associated with the Q4 promotions were unfavorably impacted due to product mix shift. Based upon these results, the company currently anticipates its Q4 earnings per share will increase 20 percent to 30 cents. These preliminary results are unaudited and will be finalized when the company issues its earnings results on Oct. 21.

Also, Sonic will mark its 60th anniversary next week at its national convention in San Diego.

"It is going to be great to be with our operators in San Diego celebrating Sonic's 60 year birthday, in addition to celebrating a summer of strong sales and profits. Our results reflect the strength and momentum of the Sonic brand and we look forward to continued growth in the near and long term," said Cliff Hudson, Sonic's chairman, CEO and president.

Outlook for 2014

In 2014, the chain anticipates new technology investments including digital point-of-purchase technology and a new point-of-sale system aimed at driving a personalized customer service experience and improved margins.

Sonic also plans 40 to 50 new franchise drive-in openings and fewer drive-in closings than in fiscal 2013.

Read more about operations management.