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Sonic boosts 4Q same-store sales 2.6%

Drive-in brand notes progress as it nears Inspire deal close

As Sonic Corp. works toward completing its sale to Inspire Brands Inc., the drive-in company reported Tuesday an improved 2.6 percent increase in same-store sales in the fourth quarter.

“I am proud of the progress we made over the course of fiscal 2018, culminating in solid same-store sales performance in the fiscal fourth quarter,” Cliff Hudson, CEO of the Oklahoma City, Okla.-based Sonic, said in a statement.

The 2.6 percent increase comes after flat same-store sales in the third quarter ended May 31. The fourth-quarter blended same-store sales consisted of a 2.6 percent increase at same-store franchise drive-ins and a 2.5 percent increase at company-owned units.

“Over the past year, our team implemented initiatives to enhance our marketing reach, refresh our advertising, introduce exciting new product news and complete the rollout of mobile order ahead to the entire system,” Hudson said.

For the fourth quarter ended Aug. 31, Sonic’s net income was down 10.7 percent, to $18.6 million, or 51 cents a share, from $20.8 million, or 50 cents a share, in the prior-year period.

Revenues were down 9.6 percent, to $111.8 million from $123.6 million in the same quarter last year.

Sonic expects its sale to Atlanta-based Inspire Brands to be completed in the final fiscal quarter of this year.

On Sept. 25, Sonic agreed to be taken private by Inspire, which owns the quick-service Arby’s, casual-dining Buffalo Wild Wings and fast-casual Rusty Taco brands. The $2.3 billion deal, in which Inspire agreed to pay $43.50 per share for Sonic’s stock, included the assumption of Sonic’s debt.

Because of the impending sale, Sonic did not conduct its usual quarterly earnings call on Tuesday.

The company did say that during the fiscal year it had repurchased 5.2 million shares of its common stock for $139.2 million, representing 12 percent of shares outstanding.

Sonic has about 3,600 drive-ins nationwide.

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

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