Barclays Maintains an 'Equalweight' on Sonic (SONC); 2011 Investor Day Pre; Structural Concerns

Barclays maintains an 'Equalweight' on Sonic (NASDAQ: SONC), PT $9.

Barclays analyst says, "Bulls view Sonic as a strong beta trade within QSR, with comps and margins at depressed levels, and therefore significant opportunity on both fronts, even if never returning to historical peaks. Bears believe the brand structurally challenged from a revenue growth standpoint, with ongoing competitive convergence in QSR limiting comp outperformance coupled with a slower unit growth profile, with franchisees struggling and newer units in the important northern states seeing a significant deceleration in sales post honeymoon. We lean toward the bearish view."

For more ratings news on Sonic click here and for the rating history of Sonic click here.

Shares of Sonic closed at $11.55 yesterday.

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