News

Sonic turns in Q4 sales improvement, FY18 sales down

October 17, 2018

Sonic's Q4 financial results indicated that systemwide same-store sales grew 2.6 percent, a news release said. Net income per diluted share also grew 2 percent to $0.51, while adjusted net income per diluted share increased 16 percent to $0.52 versus $0.45 in the prior-year period. 

Company drive-in margins fell 80 basis points as compared to the year-ago period, however.

For the 2018 fiscal year as a whole, highlights included:

• 0.3 percent drop in system same-store sales, including 0.3 percent franchise decrease and 0.8 percent company decrease.
• 29 percent growth in net income per diluted share to $1.87 versus $1.45 last year.
• 19 percent increase in adjusted net income per diluted share to $1.49 versus $1.25 last year.
• Flat margins at company drive-ins year over year.
• 41 system drive-ins opened.
• 5.2 million outstanding shares repurchased.

"I am proud of the progress we made over the course of fiscal 2018, culminating in solid same-store sales performance in the fiscal fourth quarter. ..." Sonic CEO Cliff Hudson, said in the release. "Over the past year, our team implemented initiatives to enhance our marketing reach, refresh our advertising, introduce exciting new product news and complete the rollout of mobile Order Ahead to the entire system. The future is bright for the Sonic brand."

For the fourth fiscal quarter of 2018, the company's net income totaled $18.6 million or $0.51 per diluted share compared to net income of $20.8 million or $0.50 per diluted share in the same period of the prior year. 

The lower tax rate resulting from federal tax reform benefitted adjusted earnings per share by approximately $0.05. Excluding the total impact of federal tax reform, adjusted net income per diluted share improved 4 percent to $0.47 in 2018 Q4.