Sonic Sees FY15 EPS Growth At Higher End Of Long-Term Target - Quick Facts

(RTTNews) - Drive-in restaurants chain Sonic Corp (SONC) said Tuesday that for the fiscal year 2015, it expects earnings per share growth at the higher end of its long-term 14 to 15 percent growth target.

The outlook for fiscal 2015 anticipates the following elements: positive same-store sales in the low single digit range for the system; company drive-in same-store sales growth expected to outperform franchisees as a result of the recent implementation of new digital technology menu boards and point-of-sale systems.

In addition to royalty revenue growth from same-store sales improvements and new unit development, incremental royalty revenue of about $8 million as a result of about 900 stores converting to a higher royalty rate structure at the beginning of fiscal 2015; 50 to 60 new franchise drive-in openings, resulting in net unit growth for the system.

Also drive-in-level margin improvement of between 50 to 100 basis points, depending upon the degree of same-store sales growth at company drive-ins and commodity cost inflation.

The company also detailed its planned repurchase of $105 million of stock across the fiscal year utilizing existing cash and free cash flow; and a quarterly cash dividend of $0.09 per share resulting in an estimated payout of $19 million during the fiscal year.