Sonic Corp (SONC) Reports In-Line Q3 EPS; Eases Drive-In Margin Expectations
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Financial Fact:
Depreciation and amortization: 10.96M
Today's EPS Names:
BVFL, MCET, REOS, More
Financial Fact:
Depreciation and amortization: 10.96M
Today's EPS Names:
BVFL, MCET, REOS, More
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(Updated - June 24, 2013 4:43 PM EDT, 1:43 PM PDT)
Sonic Corp (NASDAQ: SONC) reported Q3 EPS of $0.26, in-line with the analyst estimate of $0.26. Revenue for the quarter came in at $146.63 million versus the consensus estimate of $147.54 million.
System-wide same-store sales increased 0.1 percent during the third quarter, consisting of 0.2 percent same-store sales increase at franchise drive-ins and a decrease of 1.1 percent at company drive-ins; weather is estimated to have had a 300 to 400 basis point adverse impact on system-wide same-store sales for the quarter.
"We remain confident in our plan to grow shareholder value by way of the company’s multi-layered growth strategy,” commented CEO Clifford Hudson. “We expect the increased effectiveness of our media, our innovative product pipeline and layered day-part promotional strategy to continue to drive same-store sales growth and in turn margin improvement, which will also be enhanced by technology investments. This, combined with a new lower-cost, small building prototype, will improve the return on investment of new drive-ins, encouraging increased development. Finally, we will continue to utilize the strength and flexibility of our franchise business model to grow operating income and use our free cash flow1 to opportunistically invest in our brand, repurchase stock and pay down debt. We expect each of the layers in our growth strategy to contribute to our ability to grow earnings per share at a rate in the low-to-mid teens in both the near term and long term."
Looking ahead, Sonic sees fiscal 2013 comps growth in the low-single-digit range and drive-in level margins to improve from 50 to 75 basis points. With its last report, Sonic expected drive-in level margins to improve 50 to 100 basis points.
Sonic is down 3 percent in late trading.
For earnings history and earnings-related data on Sonic Corp (SONC) click here.
Sonic Corp (NASDAQ: SONC) reported Q3 EPS of $0.26, in-line with the analyst estimate of $0.26. Revenue for the quarter came in at $146.63 million versus the consensus estimate of $147.54 million.
System-wide same-store sales increased 0.1 percent during the third quarter, consisting of 0.2 percent same-store sales increase at franchise drive-ins and a decrease of 1.1 percent at company drive-ins; weather is estimated to have had a 300 to 400 basis point adverse impact on system-wide same-store sales for the quarter.
"We remain confident in our plan to grow shareholder value by way of the company’s multi-layered growth strategy,” commented CEO Clifford Hudson. “We expect the increased effectiveness of our media, our innovative product pipeline and layered day-part promotional strategy to continue to drive same-store sales growth and in turn margin improvement, which will also be enhanced by technology investments. This, combined with a new lower-cost, small building prototype, will improve the return on investment of new drive-ins, encouraging increased development. Finally, we will continue to utilize the strength and flexibility of our franchise business model to grow operating income and use our free cash flow1 to opportunistically invest in our brand, repurchase stock and pay down debt. We expect each of the layers in our growth strategy to contribute to our ability to grow earnings per share at a rate in the low-to-mid teens in both the near term and long term."
Looking ahead, Sonic sees fiscal 2013 comps growth in the low-single-digit range and drive-in level margins to improve from 50 to 75 basis points. With its last report, Sonic expected drive-in level margins to improve 50 to 100 basis points.
Sonic is down 3 percent in late trading.
For earnings history and earnings-related data on Sonic Corp (SONC) click here.
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