For the fiscal third quarter Sonic reported earnings of 30 cents a share, beating analysts' estimates of 29 cents a share by 1 cent. Revenue grew 3.8% from the year-ago quarter to $152.18 million. Analysts surveyed by Thompson Reuters expected revenue of $148.55 million for the quarter.
"Same-store sales for the quarter were especially strong, driven by our innovative product news, layered day-part promotional strategy and increased media efficiency. The multiple initiatives we have in place to increase sales, profits and new drive-in development are working together nicely to optimize shareholder value," Sonic CEO Clifford Hudson said in a press release. Same-store sales grew 5.3% in the quarter.
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TheStreet Ratings team rates SONIC CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SONIC CORP (SONC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."