OKLAHOMA CITY Sonic Corp. said Thursday that “a challenging economic environment” led to a systemwide same-store sales decline of 4.5 percent in the fourth quarter.
Sonic said same-store sales at its partner drive-ins, in which it owns a majority interest, slid 5.4 percent in the Aug. 31-ended quarter.
In the year-ago fourth quarter, Sonic reported a 0.6-percent decline in systemwide same-store sales, which included a 6.3-percent drop at partner drive-ins.
Sonic, which has more than 3,500 drive-ins nationwide, said it would report full fourth-quarter results on Oct. 20.
Clifford Hudson, Sonic’s chairman and chief executive, said, “During the past year, we have worked hard and have been pleased with the implementation of a slate of initiatives, which includes a new strategic pricing model, increased focus on customer service and the introduction of the Everyday Value Menu.”
He said the value menu had driven traffic to the stores.
Looking ahead to 2010, Sonic said it expected earnings per share to rise 10 percent to 12 percent from 2009 because of lower commodity costs and reduced interest expense. Same-store sales were projected to be flat next year.
Contact Ron Ruggless at [email protected].
