OKLAHOMA CITY Okla. Despite creating a $1 value menu at the start of the year that was designed to help spark sales, Sonic Corp. reported Tuesday that its third-quarter sales and income slipped from the same quarter last year.
The owner and franchisor of 3,526 drive-in units said net income in the quarter ended May 31 slipped 2.7 percent to $16.8 million, or 27 cents per share. In the same quarter last year, Sonic earned $17.2 million, or 28 cents per share.
Revenue in the latest quarter fell 9.9 percent to $191.9 million, and reflected the refranchising of 177 corporate restaurants to franchises and a systemwide same-store sales drop of 5.4 percent.
Same-store sales fell 7.7 percent at Sonic’s corporate drive-ins and 4.9 percent at franchised units.
“We continue to strive for greater balance in our menu, emphasizing promotions that will drive traffic, loyalty and check,” said Clifford Hudson, Sonic’s chairman and chief executive. “Our June promotion, featuring a free upgrade to a Route 44 drink with any combo meal, is designed to boost combo sales, which are an important component in driving higher check amounts. This promotion, together with other premium product promotions and our newly implemented ‘Everyday Value Menu,’ is intended to improve sales over the summer with a balance of traffic and check.”
At the end of the quarter, Sonic had 3,034 franchised units and 492 partner drive-ins.
Contact Ron Ruggless at [email protected].
