Sonic Rises On Unusually High Volume (SONC)

NEW YORK ( TheStreet) -- Sonic Corporation (Nasdaq: SONC) is trading at unusually high volume Thursday with 2.8 million shares changing hands. It is currently at four times its average daily volume and trading up 46 cents (+5.5%) at $8.77 as of 3:05 p.m. ET.

Sonic has a market cap of $483.7 million and is part of the services sector and leisure industry. Shares are up 18.6% year to date as of the close of trading on Wednesday.

Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of October 03, 2011, the company operated and franchised approximately 3,500 drive-ins. It also leases signs and real estate. The company has a P/E ratio of 33.2, equal to the average leisure industry P/E ratio and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Sonic as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally poor debt management. You can view the full Sonic Ratings Report.

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