Here's Why Stephens Continues To Like Sonic Corporation

Will Slabaugh of Stephens on Wednesday reiterated an Overweight rating on shares of

with a price target raised from a previous $32 to $34 ahead of the company's second quarter report. "Sonic's string of impressive same-store sales results has driven consistent upside to estimates, along with multiple expansion and a recent all-time high in the stock price (though it has modestly retreated since then)," Slabaugh wrote. "Nevertheless, we believe the fundamental drivers of menu innovation and marketing efficiencies remain in place and should lead to an impressive second quarter and fiscal 2015." Slabaugh expects Sonic to report a same-store sales growth of 6.1 percent while earning $0.09 per share on revenue of $120.8 million. The analyst notes that Sonic has been the most effective quick-serve restaurant player in marketing its brand strength through menu offerings which include a broader and more distinct flavor than its peers. As such, Sonic's second quarter sales will benefit from new offerings including the launch of its "Lil' Doggies" and "Lil' Chickies' snacks and its "French TOASTER Breakfast Sandwich."