Sonic Corporation SONC announced results Tuesday for its first fiscal quarter ended November 30, 2014. Revenue came in at $139.90 million, above estimates of $133.90 million and the $126.65 million reported in the year-ago period.
Net income per diluted share was $0.18, above estimates of $0.16 and the $0.14 reported in the prior-year period.
For the first fiscal quarter ended November 30, 2014, system same-store sales increased 8.5 percent, which was comprised of an 8.5 percent same-store sales increase at franchise drive-ins and an increase of 7.9 percent at company drive-ins.
“We are extremely pleased with our performance in the first quarter and believe that our focus on innovative products, increased media effectiveness and a layered day-part promotional strategy were instrumental to our continued success,” said Cliff Hudson, Sonic Corp. CEO. “Our business momentum remains strong as improvements in core menu items combined with limited-time-offer promotions are driving our same-store sales growth. Further, we expect our technology initiatives will provide an additional layer of growth to build sales and profits over the next several years."
While the macroeconomic environment may impact results, the company expects its initiatives to drive earnings per share growth in fiscal 2015 at the high end or slightly above its long-term 14 to 20 percent earnings per share growth target, versus adjusted EPS in fiscal 2014.
Sonic traded at $28.59 in the after-hours session, up 5.5 percent.
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