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Wedbush Morgan Reiterates an 'Underperform' on Sonic Corp. (SONC); Adjusts Estimates & Price Target

September 21, 2009 5:16 PM EDT
SONC Hot Sheet
Rating Summary:
    4 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wedbush Morgan reiterates an 'Underperform' rating on Sonic Corp. (Nasdaq: SONC), raises price target by $1 to $10.

Wedbush analyst says, "F2010 guidance suggests sales pressures will persist. SONC does not expect Same-Store Sales (SSS) growth in F2010 despite an easy F2009 compare (-4.4%). We expect SSS declines to moderate to (0.4)% in F2010 as an increased emphasis on customer service and the recent introduction of a new value menu will be offset by continued macro pressure, and competitive encroachment from the rollout of MCD’s beverage platform...We are lowering our F09E and F10E by a penny each to $0.71 and $0.81 based on higher G&A and D&A versus consensus..."

To see more analyst ratings on SONC Click Here.

Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States.

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