Sonic Corp. saw its second-quarter profit rise on continued same-store sales increases and improved unit margins, the company reported Tuesday.
Oklahoma City-based Sonic said net income increased 41.2 percent, to $10.8 million, or 22 cents a share, for the quarter ended Feb. 29, from $7.6 million, or 14 cents a share, in the same period a year ago. Revenue increased 5.5 percent, to $133.2 million, from $126.2 million in the prior-year quarter.
Sonic same-store sales increased 6.5 percent systemwide, consisting of a 6.5-percent same-store sales increase at franchised drive-ins and growth of 6.3 percent at company restaurants. Sonic said margins at company-owned locations improved by 60 basis points.
Cliff Hudson, Sonic CEO, said in a statement that “continued strength in core menu items, combined with highly effective limited-time-offer and value-based promotions, allowed us to increase market share in a highly competitive environment.”
Favorable commodity costs combined with sales leverage helped improve margins at the restaurant level, he said.
"As we look to sustain our recent momentum, we continue to invest aggressively in our people and technology initiatives, which we believe will further differentiate the experience we provide to our consumers," Hudson said.
Sonic has more than 3,500 drive-ins nationwide.
Earlier in March, the company said it had signed a franchise development agreement for its 46th state, Hawaii, with the first unit expected to open on the island of Oahu in 2018.
The development deal was for seven drive-ins in the state, and was with a new group, North Shore Provisions LLC, which is led by former NFL Baltimore Ravens defensive lineman and Hawaii native Ma'ake Kemoeatu.
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