News

Sonic board adds former Bob Evans CEO, announces dividend, bans antibiotics

January 20, 2017

Sonic Corp. added a former restaurant chain CEO to its board of directors today and declared quarterly cash dividend of 14 cents per share, according to a press release. In a second, simultaneous press release, the chain also announced that it is immediately banning all chicken products raised with growth-promoting antibiotics that are also important to human medicine, according to separate news releases. 

Former Bob Evans Farms Inc. Chairman and CEO Steven A. Davis is joining the drive-in chain's board of directors. Davis brings 30 years of restaurant and retail experience to the chain's governing board, having also served in the leadership positions at YUM! Brands and Kraft General Foods, according to the release.

"Steve’s executive experience in the restaurant industry combined with his brand management and consumer packaged goods knowledge, nicely complements the breadth of experience on our board," Sonic Corp. CEO Cliff Hudson said in the news release.

The board announced that the chain will pay out a 14-cent common stock dividend on Feb. 17 to all  shareholders as of Feb. 8. The company also announced a share repurchase authorization for up to $173 million of its common stock through Aug. 31.

The company's new policy regarding antibiotics requires its suppliers to immediately refrain from using medically important antibiotics to promote animal growth. Any antibiotics used must be administered by a licensed veterinarian and only to prevent, control or treat disease, according to the release. The company is also reviewing its policies regarding antibiotics used in beef and pork production.