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

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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
May 2017Wells FargoInitiates Coverage OnMarket Perform
Apr 2017Stephens & Co.UpgradesEqual-WeightOverweight
Mar 2017Canaccord GenuityDowngradesBuyHold

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

 

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