News

Sonic expects technology initiatives to boost profits in 2015

September 17, 2014

Sonic Corp. today announced its fiscal 2015 outlook.

"We have had great momentum in our business over the past three years, and with new technology initiatives to complement our innovative product pipeline and media strategies, we anticipate another strong year of increased sales and profits in 2015," CEO Cliff Hudson said in a news release.

New technology, including digital menu boards and a new point-of-sale system, were implemented in company drive-ins during fiscal 2014 and will begin rolling out to franchised drive-ins this fall.

The outlook for fiscal 2015 anticipates the following elements:

• Positive same-store sales in the low single digit range for the system;
• Company drive-in same-store sales growth expected to outperform franchisees for the fiscal year as a result of the recent implementation of new digital technology menu boards and point-of-sale systems;
• In addition to royalty revenue growth from same-store sales improvements and new unit development, incremental royalty revenue of approximately $8 million as a result of approximately 900 stores converting to a higher royalty rate structure at the beginning of fiscal 2015;
• 50 to 60 new franchise drive-in openings, resulting in net unit growth for the system.