Stephens has maintained their Overweight rating on Monday for Sonic Corporation (NASDAQ:

) ahead of Q1 results. We are maintaining our 1Q SSS growth estimate of +3.2 percent and FY16 SSS growth assumption of +2.8 percent, Stephens noted. "We believe Sonic could ultimately see upside to the higher end or above the Company's +2.0 percent to +4.0 percent guidance. Our research suggests that brand momentum remains robust amid what we see as overall rising tide in quick-service," the firm commented in their research brief. The firm made a slight adjustment to their previous 1Q franchise fees & royalties assumption. "We are reassessing our inclusion of one-time benefits the Company saw to this revenue stream in 1Q of FY15 as multiple franchisees re-signed their agreements. We maintain our OW rating and $34 price target," Stephens commented. Momentum Remains Strong Sonic is being seen by the firm as well-positioned to capitalize on a growing consumer preference for value and lower-end differentiation. According to Stephens, the combination of SONC's unique dining occasion, which lends itself to a higher frequency of attachment, and the Company's proven ability to generate compelling menu promotions/LTOs will result in outsized SSS growth for the foreseeable future. The company's shares rose higher by 1.18 percent during the past week but lost 6.29 percent on a 4-week basis. "We also look for the Company to easily show positive SSS growth in the coming quarters, despite a difficult upcoming comparison of +8.5% from 1Q15 and +11.5% from 2Q15," noted Stephens. In the past 52 weeks, Sonic's shares have dropped 15.67 percent.