NEW YORK (TheStreet) -- Shares of Sonic (SONC) were falling 11.29% to $23.50 in after-hours trading on Monday after the company posted revenue that fell short of analysts' expectations for the fiscal 2016 fourth quarter and full year.
After the closing bell, the Oklahoma City-based drive-in restaurant chain reported revenue of $162.1 million for the fourth quarter, below Wall Street's projections for revenue of $167.3 million.
Adjusted earnings of 45 cents per share topped analysts' estimates by a penny.
System-wide same-store sales declined 2% year-over-year in the quarter, which met analysts' forecasts.
For the full year, revenue of $606.3 million missed analysts' estimates for revenue of $610.9 million. Adjusted earnings of $1.29 per diluted share for the year were in-line with Wall Street's projections.
For the year, same-store sales climbed 2.6% year-over-year. Wall Street had modeled a 2.9% increase.
In fiscal 2017, Sonic anticipates that same-store sales will drop 2% or be flat. Analysts are looking for growth of 0.9% for the full year.
"While our unit growth, capital structure and refranchising initiatives are performing well, low commodity costs, resulting in an aggressive promotional and pricing environment, are expected to continue to pressure sales and earnings in fiscal year 2017," CEO Cliff Hudson said in a statement.
About 1.37 million shares of Sonic traded today vs. its 30-day average volume of about 934,000 shares.
Separately, 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.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: SONC