News

Sonic dividend expected to take super-sonic increase in FY17

August 5, 2016

Sonic execs expect to declare a 14-cent, per-share quarterly dividend in the next fiscal year — an increase of 27 percent over the current 11-cents-per-share dividend on common stock, according to a news release.

"Our multi-layered growth strategy continues to generate significant cash to drive shareholder value," said CEO Cliff Hudson. "Over the past three fiscal years, we have returned in excess of $370 million to shareholders through the combination of dividend payments and the repurchase of 13 million shares of our common stock, or approximately 23 percent of our outstanding shares.

"We believe the dividend program complements our repurchase program, providing an additional lever to deliver value to shareholders. We remain confident in the strength of the brand and in the ability of our business model to continue to drive strong future returns."

Sonic completed a fiscal 2016 repurchase program last month after spending $126 million this fiscal year to repurchase more than 4.4 million shares of common stock. The company's board has also authorized $155 million in repurchases by the end of next fiscal year. On Aug. 19, the company will pay an 11-cent, per-share dividend to shareholders of record as of Aug. 10.