Sonic (SONC) shares fell in after-hours trading on Wednesday after the company reported that first-quarter revenue fell short of expectations even as earnings and same-store sales beat analysts' estimates.
The stock initially jumped more than 4% after the earnings report, but later dropped 0.76% to $26.
The drive-in restaurant chain posted adjusted earnings of 24 cents per share, surpassing analysts' forecasts of 21 cents per share. System same-store sales fell 2% during the period, which was better than the FactSet consensus for a 2.4% drop.
Revenue came in at $129.6 million, below analysts' projections of $130.6 million.
"Our first quarter results reflect a sluggish consumer landscape and exceptionally strong prior-year performance," CEO Cliff Hudson said in a statement, "Although the business faces even tougher sales and margin hurdles in the second fiscal quarter, we remain optimistic in our ability to show sequential same-store sales and profitability improvement beginning in the second half of fiscal 2017."
During the same quarter a year ago, Sonic earned an adjusted 24 cents per share on revenue of $145.8 million and same-store sales rose 5.3%.
For fiscal 2017, the Oklahoma City-based company sees system same-store sales between flat and down 2%. Analysts are forecasting a full-year decline of 0.6%, according to FactSet. Sonic also expects between 65 and 75 new franchise drive-in openings.
More than 2.58 million of Sonic's shares changed hands today vs. its average 30-day volume of 818,732 shares.