Sonic's Earnings Aren't Immune (SONC)

Retail

Published: June 24, 2008 4:13 pm

Sonic Corp. (NASDAQ: SONC) has come out after the close with reduced guidance. The outdoor drive-up burger chain is feeling the pinch from raw materials costs, labor costs, food costs, transport costs, and probably a gas-starved suburban driver client base.

The company sees a 10% decline in Q3 net income to $0.28 EPS versus $0.31 in the prior year. The company noted that Q3 revenues were up 1% to $213.0 million. First Call is expecting $0.31 EPS on $219.95 million.

It also sees a -0.4% decline in system-wide same-store sales resulting primarily from weather-affected sales in March; system-wide same-store sales improved as the quarter progressed and returned to the company’s targeted growth range of 2% to 4% in May. The company did notes that the traffic for the quarter was slightly positive.

The company also had an opening of 41 new drive-ins in Q3, with the relocation or rebuild of 17 existing drive-ins, and the completion of 279 retrofits.

Sonic expects that its Fiscal 2008 EPS will increase in the range of 4% to 6% in fiscal 2008 versus fiscal 2007 earnings per diluted share of $0.96. While that number is adjusted for prior-year debt refinancing charges. That is only out to August 2008 and the First Call estimate is $1.05 EPS.

Sonic shares closed up 1.3% at $16.51 in regular trading, and its shares are down over 3.5% at $15.90 in after-hours. Its 52-week trading range is $15.65 to $26.19.

Jon C. Ogg
June 24, 2008

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.