Sonic Q3 Profit Rises - Update

(RTTNews) - Sonic Corp. (SONC), the largest chain of drive-in restaurants in the US, on Monday reported an increase in profit for the third quarter as same-store sales and margins improved, with both earnings and revenues coming in ahead of Wall Street estimates.

Oklahoma City-based Sonic's third-quarter profit rose to $16.8 million or $0.30 per share from $14.8 million or $0.26 per share last year. On average, 17 analysts polled by Thomson Reuters expected earnings of $0.29 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter grew to $152.2 million from $146.6 million last year. Thirteen analysts had a consensus revenue estimate of $149.6 million for the quarter.

System-wide same-store sales increased 5.3 percent for the quarter. Company drive-in margins improved by 40 basis points. During the quarter, nine new franchise drive-ins and one new company drive-in were opened.

"Same-store sales for the quarter were especially strong, driven by our innovative product news, layered day-part promotional strategy and increased media efficiency. The multiple initiatives we have in place to increase sales, profits and new drive-in development are working together nicely to optimize shareholder value," said CEO Clifford Hudson.

Looking ahead to the fourth quarter, the company expects positive same-store sales in the low single digit range for the system.

The company expects to continue to report "double-digit earnings per share growth in the near and long term."

SONC closed Monday's trading at $22.65, up $0.25 or 1.12%, on the Nasdaq. The stock further gained $0.35 or 1.55% in after-hours trade.