News for Sonic
Jan 14 · 7:11:00 AM · Source: Bluemaumau.com
Sonic Drive-In sought to reassure investors today that it can service its debt. By re-franchising 209 units in the past year, the company added $80M to bring cash on hand to around $100M and the percentage of franchised outlets in the 3560-unit chain rose from 80% franchised to 87% franchised.
The presentation by CFO Stephen Vaughan and VP for Investor Relations Claudia San Pedro did little to affect investors, as the stock drifted lower throughout today on light volume.
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by Rich Pike
Jan 11 · 4:07:00 PM · Source: Company Press Release
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.
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by Rich Pike
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