News

Sonic reports boost in same-store sales; decliine in net income

June 24, 2016

Sonic Corp announced today that system same-store sales increased 2 percent during Q3 but net income per diluted share decreased 18 percent to $0.31 compared with $0.38 in the same period prior year

"Although consumer trends slowed somewhat in April and May, our business performed well during the quarter overall, generating 2.0 percent same-store sales growth for the system and adjusted earnings per share growth of 19 percent," said CEO Cliff Hudson.

While he admitted the consumer environment has weakened, Hudson said the chain is focused on delivering one of the most "differentiated customer experiences in the quick service industry."

Also, the product pipeline remains robust with introductions of premium products like frozen lemonades and lLimeades and bacon lovers chili cheese coneys, Hudson said.

Key highlights included:

• Net income per diluted share decreased 18 percent to $0.31 compared with $0.38 in the same period prior year; adjusted net income per diluted share increased 19 percent to $0.43 compared with adjusted net income per diluted share of $0.36 in the prior-year period.
• System same-store sales increased 2 percent, consisting of a 2.1 percent same-store sales increase at franchise drive-ins and an increase of 0.9 percent at company drive-ins.
• Company drive-in margins contracted by 40 basis points.
• Opened 16 franchise drive-ins.
• Announced a refranchising initiative to move toward an approximately 95 percent-franchised system by the end of fiscal year 2017.
• Purchased 1.2 million outstanding shares.