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Sonic Q1 profits take a nosedive
January 7, 2009
OKLAHOMA CITY — Sonic Corp.'s net income for the first quarter ended Nov. 30 declined nearly 48 percent to $7.1 million, down from $13.6 million reported in the same quarter last year, the company has announced.
Systemwide same-store sales were down 3.6 percent for the period compared to an increase of 2.1 percent for same quarter last year. The decline in systemwide comps was composed of 2.9 percent lower same-store sales at franchise drive-ins and a 6.6 percent decline at partner drive-ins (drive-ins in which the company owns a majority interest).
Revenues for the quarter were down 3 percent to $184.1 million from $190.2 million in the same period last year.
Sonic chairman and CEO Clifford Hudson said that despite economic challenges, the company is moving forward with its goal to grow beyond a regional chain. The company is counting on momentum from its recently released value menu and its refranchising initiative to reduce the percentage of partner drive-ins to 12 percent to 14 percent of the system over the next few years from approximately 20 percent at the end of fiscal year 2008.
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