Sonic Corp (SONC) Tops Q3 EPS by 1c

Sonic Corp (NASDAQ: SONC) reported Q3 EPS of $0.43, $0.01 better than the analyst estimate of $0.42. Revenue for the quarter came in at $165.2 million versus the consensus estimate of $166.16 million.

System same-store sales increased 2.0%, consisting of a 2.1% same-store sales increase at franchise drive-ins and an increase of 0.9% at company drive-ins

Fiscal Year 2016 Outlook

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

• 2% to 4% 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 margins flat-to-up 40 basis points, depending upon the degree of same-store sales growth at company drive-ins;
• Selling, general and administrative expenses of approximately $83.0 million to $84.0 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(1) of approximately $75 million to $80 million;
• An income tax rate between 35.5% to 36.5%;
• The planned repurchase of at least $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.

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