NEW YORK (TheStreet) -- Shares of Sonic Corp. (SONC) are rising by 6.42% to $34.65 in after-hours trading on Tuesday, after the Oklahoma City-based company posted better-than-expected results for the 2016 second quarter.
After today's market close, the drive-in restaurant chain reported adjusted earnings of 18 cents per share, topping analysts' estimates of 16 cents per share.
Revenue for the quarter was $133.16 million, which surpassed Wall Street's expectations of $127.73 million.
Same-store sales rose by 6.5% during the period, the company said.
"Continued strength in core menu items, combined with highly effective limited-time-offer and value-based promotions, allowed us to increase market share in a highly competitive environment," CEO Cliff Hudson said in a statement.
"The combination of sales leverage and a favorable commodity cost environment helped to generate another quarter of solid margin improvement at the drive-in level," Hudson added.
Sonic also said it opened five new franchise drive-ins during the period.
About 2.16 million of the company's shares were traded today vs. its average volume of 1.07 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
This is driven by a number of strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins.
The team believes its strengths outweigh the fact that the company shows weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SONC