Sonic Corp (SONC) Tops Q2 EPS by 2c, Raises FY16 Outlook

Sonic Corp (NASDAQ: SONC) reported Q2 EPS of $0.18, $0.02 better than the analyst estimate of $0.16. Revenue for the quarter came in at $133.2 million versus the consensus estimate of $127.73 million.

• System same-store sales increased 6.5%, consisting of a 6.5% same-store sales increase at franchise drive-ins and an increase of 6.3% at company drive-ins

Fiscal Year 2016 Outlook

While the macroeconomic environment may impact results, the company is revising its outlook for adjusted earnings per share growth for fiscal year 2016 from 16% to 20% to 20% to 25%. The outlook for fiscal 2016 anticipates the following elements:

• 4% to 6% same-store sales growth for the system;
• Royalty revenue growth from same-store sales improvements and new unit development;
• 50 to 60 new franchise drive-in openings;
• Drive-in-level margin improvement between 50 to 60 basis points, depending upon the degree of same-store sales growth at company drive-ins;
• Selling, general and administrative expenses of approximately $84.0 million to $85.0 million reflecting increased investment in human resources and technology to support brand initiatives;
• Depreciation and amortization expense of $45.0 million to $46.0 million as a result of capital investment in fiscal 2016;
• Capital expenditures of $35 million to $40 million;
• Free cash flow of approximately $75 million to $80 million;
• An income tax rate between 36.0% to 37.0%;
• The planned repurchase of $126 million of stock across the fiscal year; and
• An expected quarterly cash dividend of $0.11 per share.

For earnings history and earnings-related data on Sonic Corp (SONC) click here.

You May Also Be Interested In

• Schlumberger (SLB) earnings in-line, revenue beats expectations
• Procter & Gamble (PG) revenue falls short of expectations, raises full-year earnings guidance
• Growth isn't weak enough to truly undercut inflation pressures - BMO