Sonic downgraded to Hold from Buy at Canaccord amid increased competition

|About: Sonic Corp. (SONC)|By:, SA News Editor

Sonic (SONC -2.6%) is lower after Canaccord Genuity downgrades shares to Hold from Buy and cuts its price target to $24 from $30, citing soft sales in recent months and growing food and drink competition from retail channels such as convenience stores.

Canaccord believes industry sales will continue to be challenging, and intense promoting and discounting will remain a theme, as quick service restaurant companies fight for market share, and sees no identifiable catalysts for material same-store sales improvement in the coming months.

SONC shares already are 27% lower over the past year vs. a 16% gain for the S&P 500.