Sonic (SONC)

Sonic reported for the 1st-quarter 2010 earnings of $6.2 million, or $.10 per share, on sales of $136.5 million. That compares to the prior year earnings of $7.1 million, or $.12 per share, on sales of $184.1 million.
Lower sales reflects primarily the impact on the company's revenue mix from refranchising 205 partner drive-ins during fiscal 2009. The company now receives franchise royalties from these refranchised drive-ins instead of partner drive-in sales. To a lesser extent, the decline in revenues also included the effect of lower same-store sales on partner drive-in sales and franchise royalties. Fiscal 2010 Revised Outlook Based on Sonic's first quarter results and the anticipation of a continued challenging economic and credit market environment, management anticipates earnings for 2010 will be flat versus fiscal 2009 earnings, as adjusted. This expectation is primarily based on a projected decline in annual system-wide same-store sales of 4% to 6% for the fiscal year, reflecting expected improvement in the latter half of the year versus the current trend. The company also anticipates a decline in restaurant-level margins associated with the decline in sales.

Jan 11 · 4:07:00 PM · Source: Company Press Release
Track · email · face · Twitter · digg · COMMENTS
by Rich Pike