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Sonic Corp. (NASDAQ:SONC) operates and franchises a chain of quick-service drive-in restaurants in the United States. As of Oct. 03, 2011, the company operated and franchised approximately 3,500 drive-ins. It also leases signs and real estate. The company was founded in 1953 and is headquartered in Oklahoma City, Okla.

It is scheduled to report its Q3 2012 results on June 20, 2012, after the market closes.

Recent EPS Actual vs. Estimates

The company has met or beaten analysts' estimates in the last two quarters. In the last quarter it reported $0.03 EPS, meeting analyst estimates.

The consensus EPS is $0.22 based on 14 analysts' estimates, up from $0.21 a year ago. Revenue estimates are $149.84 million, down from $152.10 million a year ago. The median target price by analysts for the stock is $9.75.

Average recommendation: Overweight

Source: MarketWatch.

Analyst Upgrades and Downgrades

On Jan. 5, 2012, RBC Capital Markets reiterated its Outperform rating for the company.

Key Metrics

  • Market Cap: 520.73 million
  • 52-week trading range: $6.35-$11.34
  • Trailing P/E: 35.79
  • Forward P/E: 13.22
  • Price/Sales: 0.95
  • Price/Book: 10.63
  • PEG Ratio: 1.12
  • Total Debt: 523.41 million
  • Annual dividend yield: N/A
  • Return on Equity: 36.40%
  • Return on Assets: 8.04%

Latest Developments

On March 21, 2012, Sonic announced that it expects positive same-store sales for fiscal 2012; a 1% change in same-store sales equates to approximately $0.03 in net income per diluted share.

Competitors

Sonic operates in the restaurants industry. The company could be compared to AFC Enterprises (AFCE), Jack in the Box (NASDAQ:JACK), McDonald's (NYSE:MCD), and The Wendy's Company (NASDAQ:WEN). Below is the table comparison of the most important ratios between these companies and the industry.

Below is a chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

Click to enlarge image.

SONC Chart

Competitors' Latest Developments

  • On May 24, 2012, McDonald's announced that it has declared a quarterly cash dividend of $0.70 per share of common stock, payable on June 15, 2012, to shareholders of record at the close of business on June 4, 2012.
  • On May 24, 2012, AFC Enterprises announced that it is raising fiscal 2012 guidance and expects global same-store sales growth in the range of 4.0%-5.0%, compared to previous guidance of 3.0%-4.0%, and adjusted EPS guidance to $1.13-$1.16 per diluted share from $1.09 to $1.13 per diluted share.
  • On May 16, 2012, Jack in the Box announced that for the third quarter of 2012, it expects same-store sales to increase approximately 3% to 4% vs. a 4.7% increase in the year-ago quarter, and same-store sales to increase approximately 3% to 4% at Qdoba system restaurants vs. a 5.1% increase in the year-ago quarter.
  • On May 14, 2012, Jack in the Box announced that Leonard A. Comma was promoted to president and Chief Operating Officer, effective May 14, 2012.
  • On May 8, 2012, The Wendy's Company announced that based on results, the company has revised fiscal 2012 outlook for Adjusted EBITDA from continuing operations to a range of $320 million to $335 million.
  • On May 7, 2012, Rompres reported that five new U.S. companies will be listed on the Alternative Trading System of the Bucharest Stock Exchange International Department, starting on May 10, 2012.
  • On April 20, 2012, McDonald's announced that it is continuing into April 2012 with global comparable sales growth expected to be about 4%.
  • On April 5, 2012, The Wendy's Company announced an agreement with The Wissol Group to develop 25 restaurants in Georgia and the Republic of Azerbaijan over the next 10 years.
  • On March 22, 2012, McDonald's announced that Vice Chairman and Chief Executive Officer Jim Skinner has informed the board of directors of his decision to retire after 41 years with the company, effective June 30, 2012.
  • On March 8, 2012, AFC Enterprises announced that for fiscal 2012, it expects same-store sales growth in the range of 3.0% to 4.0%. Over the course of the upcoming five years, the company expects same-store sales growth of 1%to 3% and earnings per diluted share growth of 13% to 15%.
  • On March 1, 2012, The Wendy's Company reaffirmed its outlook for fiscal 2012, including adjusted EBITDA of $335 million to $345 million, which it originally issued at its Jan. 30, 2012, Investor Day.
  • On Feb. 22, 2012, Jack in the Box announced that for the second quarter of 2012, it expects same-store sales to increase approximately 4% to 5%, and same-store sales are expected to increase approximately 4% to 5% at Qdoba system restaurants vs. a 6.0% increase in the year-ago quarter.
  • On Feb. 13, 2012, The Wendy's Company announced the declaration of its regular quarterly cash dividend of $0.02 per share, payable on March 15, 2012, to stockholders of record as of March 1, 2012.
  • On Jan. 30, 2012, The Wendy's Company announced that for fiscal 2012, it expects adjusted EBITDA to be in a range of $335 million to $345 million. The outlook reflects continuing operations and excludes items such as relocation costs and other expenses related to the consolidation of the Atlanta restaurant support center with the Dublin, Ohio, restaurant support center, which the company estimates to be approximately $23 million.
  • On Jan. 27, 2012, McDonald's Corporation announced that it has declared a quarterly cash dividend of $0.70 per share of common stock, payable on March 15, 2012 to shareholders of record at the close of business on March 1, 2012.
  • On Jan. 26, 2012, AFC Enterprises announced that for the fourth quarter of 2011, it expects reported earnings per diluted share to be $0.22-$0.23 and adjusted EPS to be $0.23-$0.24.
  • On Jan. 24, 2012, McDonald's announced that it expects comparable sales for January 2012 to be up 5.5% to 6.5%.
  • On Jan. 5, 2012, CIA - Daily News reported that McDonald's has opened its first restaurant in Frydek-Mistek, in the Czech Republic. The company has said that the total investment into the restaurant reached almost CZK 49 million.

Technical Insight


The company had reached its lows in the autumn of last year. It stayed there until this spring. Recently, however, it has started to show some signs of turning north and is trading in the zone of breaking out of the channel on the daily chart. It is trading above the 20-, 50- and 200-SMA.

Data sourced from Yahoo Finance, Google Finance, Marketwatch, Finviz, and Reuters.

Source: Sonic Releases Earnings On Wednesday, June 20