NEW YORK (TheStreet) -- Shares of Sonic (SONC) were falling 18.38% to $21.62 on heavy trading volume mid-Tuesday morning after the company reported fiscal 2016 fourth quarter and full-year revenue that missed analysts' estimates.
After yesterday's closing bell, the Oklahoma City-based drive-in restaurant chain posted fourth quarter revenue of $162.1 million, lower than Wall Street's expected $167.3 million.
Sonic reported adjusted earnings of 45 cents per share for the quarter. Analysts were looking for earnings of 44 cents per share.
System-wide same-store sales slid 2% over last year in the quarter and were in-line with Wall Street's forecast.
For the fiscal year, revenue of $606.3 million was below analysts' anticipated $610.9 million. Adjusted earnings of $1.29 per diluted share met Wall Street's estimates.
Same-store sales for the year grew 2.6% over last year, but missed analysts' projections of a 2.9% increase.
Stephens downgraded Sonic stock to "equal weight" from "overweight" and cut its price target to $26 from $32 this morning, the Fly reports.
The firm said that Sonic should reach a better franchised multiple as sales increase, but the current lack of transparency in earnings and sales will dampen share growth in upcoming quarters.
More than 4.16 million shares of Sonic have traded hands so far today vs. the 30-day average volume of about 950,000 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