Sonic Jumps 3% After In-Line Q1

Sonic SONC is up more than three percent in after hours trading after the company announced its first quarter results. The company reported a Q1 EPS of $0.13, which was inline with Wall Street's expectations. Earnings per share were up 18 percent from the year-ago period. "Fiscal year 2014 is off to a solid start as we focus on key initiatives such as increased media effectiveness, our innovative product pipeline and layered day-part promotional strategy to drive same-store sales growth and, in turn, margin improvement," Cliff Hudson, Chairman, Chief Executive Officer and President of Sonic, said in a company release. "During the first quarter we built on our solid foundation of service, products and pricing with increased media effectiveness, which is having a positive impact across all markets. We also continued to have strong promotions during the quarter with the continuation of the Summer of Shakes promotion into September, our new Spicy Chicken Sandwich and our popular Cheesecake Bites." Sonic expects its initiatives to drive 14 percent to 15 percent EPS growth in fiscal 2014. Earlier today the company announced that it would open eight new locations in the Buffalo, New York market. The popular drive-in chain currently franchises and operates more than 3,500 locations in the United States. "Sonic has a passionate and loyal customer following and is a common sight in many parts of the country," Bob Franke, Senior VP of Franchise Sales and International Development for Sonic, said in another company release. "However, some consumers in the Northeast that see our commercials or hear about us may not have a Sonic Drive-In in their community yet. "Fortunately, our differentiated concept with distinctive sandwiches, snacks and drinks appeals to customers across the country, and our business model combined with the unit growth prospects makes Sonic attractive to entrepreneurs. This agreement for eight new Drive-Ins in Buffalo introduces Sonic to a new, eager community and represents another step toward expanding our already growing footprint in the region." Shares of Sonic are up more than 84 percent over the last 12 months, and up more than 200 percent over the last two years. Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.