Sonic Tops Q4 Expectations
Sonic Corp. (NASDAQ: SONC) reported better-than-expected results for the second fiscal quarter on Tuesday.
The Oklahoma City, Oklahoma-based company posted quarterly net income of $7.7 million, or $0.14 per share, up from $4.1 million, or $0.07 per share, in the year-ago period. Excluding items, the company earned $0.13 per share.
Its revenue climbed to $126.2 million from $109.7 million. However, analysts were expecting earnings of $0.12 per share on revenue of $123.36 million.
Its system same-store sales climbed 11.5 percent in the quarter. Same-store sales at franchise drive-ins rose 11.5 percent, while same-store sales at company drive-ins climbed 11.2 percent.
Company drive-in margins widened 110 basis points in the quarter.
"Successful company initiatives combined with an improving macro environment resulted in an exceptionally strong second fiscal quarter with 11.5% same-store sales growth. We are particularly pleased that traffic drove two-thirds of our same-store sales increase," said Cliff Hudson, Sonic Corp. CEO. "This increase is primarily a result of growth in our core menu items and product innovation, complemented by our national media strategy. As we move into the second half of fiscal 2015 we expect our business momentum to continue. In addition, we expect technology initiatives to provide an additional layer of growth to build sales and profits over the next several years."
Sonic shares gained 1.07 percent to $37.05 in the after-hours trading session.
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