Sonic Corp (SONC) Tops Q4 EPS by 1c, Offers FY17 Outlook

October 24, 2016 4:14 PM EDT
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Sonic Corp (NASDAQ: SONC) reported Q4 EPS of $0.45, $0.01 better than the analyst estimate of $0.44. Revenue for the quarter came in at $162.1 million versus the consensus estimate of $167.15 million.

  • System same-store sales decreased 2.0%

Fiscal Year 2017 Outlook

  • While the macroeconomic environment may impact results, the company expects adjusted earnings per share for fiscal year 2017 to be in the range of down 7% to flat year over year. The outlook for fiscal 2017 anticipates the following elements:
  • (2)% to 0% same-store sales for the system;
  • Royalty revenue growth from new unit development;
  • 65 to 75 new franchise drive-in openings;
  • Drive-in-level margins of 16-17%, depending upon the timing of drive-in divestitures and the degree of same-store sales growth at company drive-ins;
  • Selling, general and administrative expenses of approximately $85.0 million to $86.0 million reflecting increased investment in human resources and technology to support brand initiatives;
  • Depreciation and amortization expense of $42.0 million to $44.0 million reflecting the divestiture of company drive-ins as previously announced;
  • Capital expenditures of $40 million to $45 million reflecting ongoing investment into the company‚Äôs technology initiatives;
  • Free cash flow(1) of approximately $60 million to $65 million;
  • An income tax rate between 35.0% to 36.0%;
  • The planned repurchase of at least $173 million of stock across the fiscal year, inclusive of refranchising proceeds; and
  • An expected quarterly cash dividend of $0.14 per share.

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

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