Market Overview

Why Brian Sozzi Isn't Surprised By The Surge In Sonic's Shares

Share:
Related SONC
The Market In 5 Minutes: Jobless Claims Fall Again, Retailers Struggle
8 Stocks You Should Be Watching Today
Sonic declares $0.14 dividend (Seeking Alpha)

Shares of Sonic Corporation (NASDAQ: SONC) were trading higher by more than 8 percent Wednesday after the company's first quarter results exceeded expectations.

Brian Sozzi of Belus Capital Advisors wasn't surprised by the move; He projected last November the company would perform well.

Sozzi said that Sonic's success is due to its clever marketing (which includes its “two guys” commercials) and made to order food.

“The absence of charismatic brand ambassadors in the marketing of McDonald's and Burger King has allowed Sonic to carve out a place on television with its ‘two guys' – two middle-aged men sitting in a car at a Sonic drive-in and bantering on the latest new product or mouth-water promotion.”

Sozzi stated that Sonic's sales trends are better than its larger peers, which allows the company to realize a higher share in the highly-competitive market. Looking forward, the analyst projected the company plans to enter new markets in new states, offer lower calorie foods and drinks, and roll out assorted technologies.

Latest Ratings for SONC

DateFirmActionFromTo
Dec 2016Cowen & Co.Initiates Coverage OnMarket Perform
Dec 2016Longbow ResearchDowngradesBuyNeutral
Oct 2016Telsey Advisory GroupDowngradesOutperformMarket Perform

View More Analyst Ratings for SONC
View the Latest Analyst Ratings

Posted-In: Belus Capital Advisors Brian Sozzi Fast Food Sonic Two GuysAnalyst Color Restaurants Analyst Ratings General

 

Related Articles (SONC)

View Comments and Join the Discussion!