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Sonic Gains Despite Downgrade

OKLAHOMA CITY, Okla. ( TheStreet) -- Sonic (SONC - Get Report) shares traded on heavier-than-normal volume after the fast-food chain's stock was downgraded.

Barclays analysts lowered their price target on Sonic shares to $8, citing the restaurant operator's 2011 guidance with limited visibility.

Barclays reiterated its equal weight rating on Sonic shares.

KeyBanc Capital Markets downgraded its rating on Sonic to hold, from buy.

RBC Capital Markets reiterated its sector perform rating on Sonic, but lowered its price target to $10, from $11, according to

Sonic shares fell sharply in the first minutes of trading but quickly reversed direction. Less than 90 minutes into the session, the stock was 2.1% higher. Nearly 800,000 shares were in play, compared with their three-month trailing average of 617,000.

>>Bankruptcy Watch: 20 Riskiest Restaurant Stocks

Elsewhere in the fast food sector, Good Times Restaurants (GTIM - Get Report) shares jumped 18.6% on heavy volume, but the gain amounted to just 11 cents.

Last month Good Times received a second warning notice from the NASDAQ threatening its delisting for being noncompliant with the rule that requires minimum stockholder equity of $2.5 million or $35 million market value of listed securities, or $500,000 of net income from continuing operations for the most recent fiscal year or two of the three most recent fiscal years.

As of its most recently reported quarterly results on June 30, Good Times' stockholder equity was $2.2 million.

>>Good Times Turn Bad: Delisting Looms

-- Written by Miriam Marcus Reimer in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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