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.
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“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.