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Sonic more than doubles profit in 2Q

Sonic more than doubles profit in 2Q

Company points to national marketing, product pipeline

Sonic Corp.’s profit more than doubled in the second quarter, the Oklahoma City-based drive-in operator reported Monday.

Net income rose 113.3 percent in the quarter ended Feb. 28, to $3.6 million, or six cents per share, from $1.7 million in the same period last year. The company had a $900,000 tax benefit in the quarter.

Revenue in the second quarter slipped to $111.1 million, from $115.1 million in the year-earlier quarter.

With one less day than the prior year as a result of leap year, systemwide same-store sales were flat during the second quarter, the company said. Same-store sales at company-owned drive-ins increased 1.9 percent in the quarter.

“Given more than a 1-percent negative impact from the loss of leap year day, we are pleased with our systemwide same-store sales performance,” Clifford Hudson, Sonic’s chairman and chief executive, said in a statement. “Our innovative product pipeline and shift from local to national media expenditures are having a positive impact across our core, developing and new markets.”

The company said that during the quarter it purchased more than $6 million of stock, representing about 1 percent of its outstanding stock.

“Over the next one to three years, initiatives such as our new point-of-sale system will complement our same-store sales initiatives to increase sales and profits,” Hudson said. “This, combined with a new lower-cost, small building prototype, will improve the return on investment of new drive-ins, encouraging increased development in fiscal 2014 and subsequent years.”

Company drive-in sales in the second quarter decreased by $3.5 million compared with prior-year quarter, with the refranchising of 34 company drive-ins, Sonic said.

Sonic has more than 3,500 owned and franchised drive-in units.

Contact Ron Ruggless at [email protected].
Follow him on Twitter: @RonRuggless


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