Barclays Maintains an 'Equalweight' on Sonic (SONC); Q2 Preview; Shares Fairly Valued
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Price: $43.49 --0%
Rating Summary:
4 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on Sonic (NASDAQ: SONC) price target of $7.00.
Analyst, Jeffrey A. Bernstein, said, "We expect EPS of $0.02, flat y-y, and in-line with consensus...guidance was not provided. On 3/8, SONC pre-announced system comp of 3.4%, which was below elevated mid-single-digit expectations. System comp included 3.1% for company and 3.5% for franchise units. We note each ~1pp of comp is worth $0.03 to annual EPS. We expect restaurant margins down 70bps to ~9%, with significant food cost inflation more than offsetting fixed cost leverage."
"While 2QF12 system comps improved sequentially on a one- and two-year basis based on favorable weather and new product news, we believe continued comp improvement may prove challenging, especially as the brand faces increasingly difficult compares (system 3.9% in 3QF11, the toughest in five years)."
For an analyst ratings summary and ratings history on Sonic click here. For more ratings news on Sonic click here.
Shares of Sonic closed at $8.00 yesterday.
Analyst, Jeffrey A. Bernstein, said, "We expect EPS of $0.02, flat y-y, and in-line with consensus...guidance was not provided. On 3/8, SONC pre-announced system comp of 3.4%, which was below elevated mid-single-digit expectations. System comp included 3.1% for company and 3.5% for franchise units. We note each ~1pp of comp is worth $0.03 to annual EPS. We expect restaurant margins down 70bps to ~9%, with significant food cost inflation more than offsetting fixed cost leverage."
"While 2QF12 system comps improved sequentially on a one- and two-year basis based on favorable weather and new product news, we believe continued comp improvement may prove challenging, especially as the brand faces increasingly difficult compares (system 3.9% in 3QF11, the toughest in five years)."
For an analyst ratings summary and ratings history on Sonic click here. For more ratings news on Sonic click here.
Shares of Sonic closed at $8.00 yesterday.
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