NEW YORK (TheStreet) -- Sonic (SONC stock is plummeting 5.34% to $28.73 in after-hours trading on Thursday after the drive-in restaurant operator reported disappointing comparable sales and revenue for the fiscal 2016 third quarter.
The Oklahoma City-based company reported revenue of $165.24 million for the quarter ended May 31, below estimates of $166.16 million.
Same-store sales increased 2%, with franchise drive-in same-store sales up 2.1% and company-owned locations comparable store sales rising 0.9%.
The consensus was calling for a 2.4% increase in same-store sales, Deutsche Bank analysts, who were expecting a 2.1% rise, said in a recent note.
Earnings of 43 cents per share for the quarter topped Wall Street projections by a penny.
"Although consumer trends slowed somewhat in April and May, our business performed well during the quarter overall, generating 2.0% same-store sales growth for the system and adjusted earnings per share growth of 19%," CEO Cliff Hudson said in a statement.
Separately, Sonic has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins.
You can view the full analysis from the report here: SONC
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