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Sonic's 2nd-Q profit jumps 49%

OKLAHOMA CITY Sonic Corp., parent to the 3,400-unit drive-in brand, based here, reported a 49-percent year-to-year surge in net income for its February-ended quarter, on both sales growth and a favorable comparison to year-earlier results that were hurt by one-time charges.

Sonic’s second-quarter net income totaled $9.3 million, or 15 cents per share, compared with $6.2 million, or 9 cents per share, in the same period last year.

The large increase in net income for the latest quarter, which ended Feb. 29, reflected year-ago charges of $3.4 million, or 5 cents per share, taken for the paydown of debt related to Sonic’s share repurchases in 2007. Excluding that charge, Sonic’s latest-quarter net income would have increased 3 percent from an adjusted year-ago profit of $9.0 million.

Revenue in the latest quarter rose 8.2 percent to $174.6 million. Sonic’s systemwide same-store sales increased 3.2 percent and reflected a 3.4-percent boost at franchised drive-ins and a 2.3-percent increase at drive-ins where the company owns a majority interest.

The company said it opened 34 new drive-ins during the second quarter, relocated or rebuilt 16 existing drive-ins and retrofitted 239 units. The company also cited its Happy Hour drink promotion as a sales driver during the quarter.

Anew line of coffee drinks is expected to debut this month, the company added, and media expenditures are expected to increase to $190 million this fiscal year. The efforts are expected to drive same-store sales to an annual gain between 2 percent and 4 percent, the company said.

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