Sonic Corp. reports improved sales for its final fiscal 2018 quarter
Sonic Corp. announced its financial results for the fourth fiscal quarter of 2018 (Q4). In September, Sonic agreed to a merger agreement in which it will be acquired by Inspire Brands, a wholly-owned subsidiary of Roark Capital. Comparable sales across the system of Sonic drive-ins increased 2.6 percent. This was comprised of a 2.6-percent comparable sales increase at franchised stores and company stores increasing 2.5 percent. Operating margins at company-owned stores decreased 80 basis points.
Net income per diluted share increased 2 percent to $0.51, compared to $0.50 in the year-earlier quarter. Adjusted net income per diluted share increased 16 percent to $0.52 versus $0.45 last year in the same period.
“I thank our operators for their sustained efforts to offer the most personalized experience in the quick service restaurant industry and their confidence in underwriting a strong future for the brand through investments in drive-ins, people and technology, as well as their dedication to their employees and communities,” said Cliff Hudson, Sonic Corp. chief executive, in a financial release.
For its fiscal 2018 year, Sonic reported that comparable sales have decreased 0.3 percent, comprising a 0.3-percent decline at franchised drive-ins and a 0.8-percent decrease at company-owned stores. Sonic’s net income per diluted share increased 29 percent to $1.87 versus last year. Adjusted net income per diluted share rose 19 percent to $1.49, compared to $1.25 in the prior year.
Photo credit: Sonic Corp.