Barclays Maintains an 'Equalweight' on Sonic (SONC); 3QF11 Preview: Will Comp Drive Leverage?
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Price: $43.49 --0%
Rating Summary:
4 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Sonic (NASDAQ: SONC), PT $9.
Barclays analyst says, "SONC will report 3QF11 results on 6/22 post close, having pre-announced better-than-expected system comps for the first two months. The question remains the ability to leverage positive comps into outsized EPS growth. While we're impressed by the recent comp acceleration, we continue to believe Sonic's long-term comp and unit growth model structurally challenged. Management has acknowledged inability to return to historical sales growth (driven by comp & unit) and peak margins. The shares are at ~18x, a ~15% premium to QSR peers, versus the 7-20x 3-year range and 14x average."
"3QF11 EPS: Expect EPS of $0.19, flat y-y, and $0.01 above the Street...Outlook: Expect F11 guidance to be unchanged (other than impact from their recent $500m refinancing), which has excluded EPS color. Our forecast remains for 8% EPS growth. We do not expect F12 guidance until they report 4QF11, which ends August."
For more ratings news on Sonic click here and for the rating history of Sonic click here.
Shares of Sonic closed at $10.80 yesterday.
Barclays analyst says, "SONC will report 3QF11 results on 6/22 post close, having pre-announced better-than-expected system comps for the first two months. The question remains the ability to leverage positive comps into outsized EPS growth. While we're impressed by the recent comp acceleration, we continue to believe Sonic's long-term comp and unit growth model structurally challenged. Management has acknowledged inability to return to historical sales growth (driven by comp & unit) and peak margins. The shares are at ~18x, a ~15% premium to QSR peers, versus the 7-20x 3-year range and 14x average."
"3QF11 EPS: Expect EPS of $0.19, flat y-y, and $0.01 above the Street...Outlook: Expect F11 guidance to be unchanged (other than impact from their recent $500m refinancing), which has excluded EPS color. Our forecast remains for 8% EPS growth. We do not expect F12 guidance until they report 4QF11, which ends August."
For more ratings news on Sonic click here and for the rating history of Sonic click here.
Shares of Sonic closed at $10.80 yesterday.
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