News

Sonic's solid Q4 numbers result of marketing, menu additions, value options

September 11, 2018

Sonic Corporation's preliminary Q4 financials indicated that the brand grew same-store sales 2.6 percent over the prior year quarter and that net income per diluted share should come in between 50 and 51 cents, with adjusted net income per diluted share for the period to hit 51 to 52 cents, a news release said. 

"Our recent same-store sales performance reflects a stronger trend, driven by Sonic's enhanced marketing reach, refreshed advertising creative, strong new product contribution and relevant everyday value," CEO Cliff Hudson, said in the release."Our strategy this summer--focused on winning incremental visits from our customers — resulted in an increase in traffic of approximately 2.5 percent as compared to last year."

Hudson said the brand also launched its mobile order-ahead functions systemwide in Q4, while plowing through the 1million mark for order-ahead users. Sonic hopes the momentum will continue to year's end with a new fall ad campaign launch, the release said. 

The company also repurchased 5.2 million shares of its common stock for $139.2 million, representing 12 percent of shares outstanding. Sonic made aggregate dividend payments of $24 million during the quarter. 

The chain now has about 3,600 drive-in locations with 95 percent being franchised.