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SONC

Sonic Corp.

5/24/2013, 6:29 AM ET

Quote & Headlines Market Currents StockTalk

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Monday, April 29, 2:27 PM McDonald's (MCD +1.5%) and Dunkin' Donuts (DNKN +0.4%) are leading a pack of restaurant chains that are extending hours of operation in order to help pump up revenue. In some cases, the plan is pitting some companies against their own franchisees that are somewhat convinced the wee midnight to early breakfast hours aren't unprofitable. Analysts say it depends on the brand. What works for Taco Bell, Denny's, or White Castle might not work for the sector as a whole. 4 Comments [Consumer]
Friday, April 12, 9:51 AM Restaurant sales trends improved in March but remain "fragile," according to a new report from Black Box Intelligence. The sector saw a same-store sales increase of 0.5% during the month compared to February’s decline of 5% - while traffic decreased 2% compared to a 4.2% drop in February. Comment! [Consumer]
Wednesday, April 10, 2:17 PM Restaurant visits by parties of adults grew by 1% last year to end four consecutive declines in the category but visits with children in tow showed flat growth once again, according to tracking from the NPD Group. A tripping point for the sector has been the lack of growth in visits by parties with kids. What to watch: Analysts see increased promotional activity sneaking in on the industry's margins. 5 Comments [Consumer]
Friday, April 5, 10:40 AM A strike by fast food workers in New York City could have broad implications with the group's lofty goal to see a 107% pay raise up to $15 per hour. What to watch: Though historically the high turnover rate in the QSR industry has kept labor disruptions to a minimum, unions of foodservice workers have strengthened since 2009 and could take a small bite out of the sector's margins. 10 Comments [Consumer]
Monday, April 1, 8:48 AM Sun Capital's Boston Market fast food chain will move into ribs in its biggest new food launch in six years. The big picture: Though the move is another example of the aggressive efforts of the QSR industry to match the fare at the market-stealing Panera and Chipotle chains, analysts continue to question the impact on margins of the wings-ribs-premium burgers menu plays. 3 Comments [Consumer]
Tuesday, March 26, 1:29 PM Despite an ongoing trend of sluggish sales, Sonic (SONC +8.3%) rips higher as cost-cutting initiatives start to pay off for the restaurant operator. For the current fiscal year, the company expects same-store sales to increase in the low single-digit range. Comment! [Consumer, On the Move]
Monday, March 25, 5:56 PM After-hours top gainers, as of 5:15 p.m.: CALL +6%. TX +5%. KWK +4%. CAR +4%. SONC +5%.
After-hours top losers: HXM -9%. GMAN -5%. CLMT -5%. MGLN -2%. Comment! [On the Move]
Monday, March 25, 5:45 PM More on Sonic (SONC): FQ2 EPS comes in line with estimates, but net earnings soar as lower costs more than offset a 4% decline in total revenue versus the year-earlier period. Systemwide same-store sales were flat, while same-store sales at company-owned drive-ins improved by 1.9%. The company benefited from lower expenses during the quarter, including a 4% decline in payroll and benefits costs, a 4.6% drop in food and packaging expenses and a 3% decrease in SG&A costs. Shares +4% AH. Comment! [Earnings, Consumer, On the Move]
Monday, March 25, 4:04 PM Sonic (SONC): FQ2 EPS of $0.05 in-line. Revenue of $111.4M. Shares +3.9% AH. (PR) Comment! [Earnings, Breaking News, On the Move]
Monday, March 25, 2:30 PM Restaurant blues: The consensus estimate of economists for consumer spending growth in February is for a 0.6% gain after the measure rose 0.2% in January but don't expect restaurants to report strong numbers for Q1. Inside tracking and guidance warnings from key companies indicate that the sector is feeling the pressure of higher payroll taxes. Major chains also face a tough period of comparable with last year's winter much milder on average in the U.S. 4 Comments [Consumer]
Friday, February 22, 8:50 AM The restaurant sector is on watch after a pre-earnings warning from Darden Restaurants (DRI) and a harsh downgrade on Wendy's (WEN) sets a negative tone. The picture being painted for 2013 is starting to get pretty consistent - margin pain and soft traffic trends. Other things to watch in 2013 for the sector: 1) The impact of higher payroll taxes. 2) The coming costs of the Affordable Care Act. 3) The push to raise the minimum wage. 4) Which chains can succeed in China and India? 5 Comments [Consumer]
Wednesday, February 13, 10:14 AM Margin pain on the horizon: Restaurants could get squeezed this year from a combination of higher commodity costs and frugal consumers, according to AlixPartners. Though traffic is forecast to rise 3%, the average ticket is expected to decline 4.7% with coupons, promotions, and discounts gaining favor. Chains that are expected to ride out the expected tough environment are those that can deliver healthy food fast. Chipotle (CMG -1.8%), privately-held Subway, and Panera (PNRA -1.5%) fit the bill. 6 Comments [Consumer]
Friday, January 25, 8:38 AM Sonic (SONC) announces its President will resign as of March 31 with his duties set to be taken over by CEO Cliff Hudson. Life is about to get challenging for the company as it joins the entire restaurant sector in running head-on into a tough period of comps. Comment! [Consumer]
Tuesday, January 22, 1:44 PM Analysts warn that with the economy so fragile and pricing competition fierce it will hard for restaurants to pass on the higher wholesale beef prices that are forecast down to consumers. Though quick-service chains will toy with their menus (more chicken) and try to use forward purchase contracts to lower costs, the impact of last year's drought could take a few seasons to reverse. 6 Comments [Consumer]
Wednesday, January 9, 6:50 AM Hedgeye says current employment trends show a potential deceleration of employment growth in the casual dining restaurant sector as compared to the broader economy. According to the firm, the data suggests a possible slowing of casual dining sales as a result. 5 Comments [Consumer]
Thursday, January 3, 7:48 PM More on Sonic (SONC): FQ1 comes in line with estimates as same-store sales continue to rise and costs declined for the quarter. However, the stock is down after hours as investors look at the longer term comps, which are trending lower. Shares -4.8% AH. Comment! [Earnings, On the Move]