Sonic Corp (SONC) Tops Q4 EPS by 8c, Offers FY16 Outlook

Sonic Corp (NASDAQ: SONC) reported Q4 EPS of $0.50, $0.08 better than the analyst estimate of $0.42. Revenue for the quarter came in at $175.3 million versus the consensus estimate of $175.33 million.

For the fourth fiscal quarter ended August 31, 2015, system same-store sales increased 4.9%, which was comprised of a 4.9% same-store sales increase at franchise drive-ins and an increase of 4.5% at company drive-ins

Fiscal Year 2016 Outlook

While the macroeconomic environment may impact results, the company now expects its initiatives to drive 16% to 20% earnings per share growth for fiscal 2016 as compared to the previous outlook of 14% to 18% growth, reflecting higher share repurchase activity in the first half of the fiscal year. 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 margin improvement between 75 to 125 basis points, depending upon the degree of same-store sales growth at company drive-ins;
• Selling, general and administrative expenses of $81.5 million to $82.5 million reflecting increased investment in human resources to support brand initiatives;
• Depreciation and amortization expense of $45.5 million to $46.5 million as a result of capital investment in fiscal 2016;
• Net interest expense of $26.5 million to $27.5 million;
• Capital expenditures of $35 million to $40 million;
• Free cash flow1 of $70 million to $75 million;
• An income tax rate between 36.5% to 37.5%;
• The planned repurchase of $126 million of stock across the fiscal year, with a higher concentration of share repurchases in the first half of 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

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Silexion Therapeutics (SLXN) Tops Q2 EPS by 793c
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c