Sonic Corp. (NASDAQ:SONC) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Sonic Corp. (NASDAQ:SONC) announced its quarterly earnings data on Monday, October 16th. The restaurant operator reported $0.45 EPS for the quarter, beating the Zacks’ consensus estimate of $0.43 by $0.02, Bloomberg Earnings reports. The business had revenue of $123.60 million during the quarter, compared to analyst estimates of $126.01 million. Sonic Corp. had a net margin of 13.34% and a negative return on equity of 33.92%. The firm’s revenue for the quarter was down 23.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.45 earnings per share.

Sonic Corp. (NASDAQ SONC) opened at 25.68 on Friday. The firm has a 50-day moving average of $24.53 and a 200-day moving average of $25.85. Sonic Corp. has a 52 week low of $22.11 and a 52 week high of $30.05. The company has a market capitalization of $1.06 billion, a PE ratio of 17.71 and a beta of 1.76.

The business also recently declared a quarterly dividend, which will be paid on Friday, November 17th. Stockholders of record on Wednesday, November 8th will be paid a dividend of $0.16 per share. This is a boost from Sonic Corp.’s previous quarterly dividend of $0.14. This represents a $0.64 annualized dividend and a dividend yield of 2.49%. Sonic Corp.’s dividend payout ratio is 38.10%.

In other news, Director Federico F. Pena sold 1,161 shares of the company’s stock in a transaction on Monday, October 23rd. The shares were sold at an average price of $25.20, for a total value of $29,257.20. Following the sale, the director now directly owns 1,187,659 shares of the company’s stock, valued at approximately $29,929,006.80. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Frank E. Richardson III sold 50,000 shares of the company’s stock in a transaction on Thursday, October 26th. The shares were sold at an average price of $25.59, for a total transaction of $1,279,500.00. Following the completion of the sale, the director now directly owns 1,187,659 shares in the company, valued at $30,392,193.81. The disclosure for this sale can be found here. Insiders own 6.24% of the company’s stock.

SONC has been the subject of a number of research analyst reports. BidaskClub lowered shares of Sonic Corp. from a “hold” rating to a “sell” rating in a research report on Sunday, July 16th. Zacks Investment Research lowered shares of Sonic Corp. from a “hold” rating to a “sell” rating in a research report on Tuesday, July 18th. Piper Jaffray Companies reaffirmed a “buy” rating and set a $32.00 price objective on shares of Sonic Corp. in a research report on Wednesday, July 26th. Jefferies Group LLC reissued a “hold” rating and issued a $26.00 price target on shares of Sonic Corp. in a research report on Thursday, July 27th. Finally, Bank of America Corporation reissued a “buy” rating and issued a $30.00 price target on shares of Sonic Corp. in a research report on Monday, August 14th. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating and five have assigned a buy rating to the company’s stock. Sonic Corp. currently has an average rating of “Hold” and an average target price of $27.73.

Sonic Corp. declared that its Board of Directors has initiated a share repurchase plan on Wednesday, August 9th that allows the company to repurchase $160.00 million in outstanding shares. This repurchase authorization allows the restaurant operator to purchase up to 16.2% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

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Sonic Corp. Company Profile

Sonic Corp. operates and franchises the chain of drive-thru restaurants (Sonic Drive-Ins) in the United States. As of August 31, 2016, 3,557 Sonic Drive-Ins were in operation from coast to coast in 45 states, consisting of 345 Company drive-thrus and 3,212 franchise drive-thrus. As of August 31, 2016, its restaurant design and construction consisted of a kitchen housed in a one-story building, which was approximately 1,500 square feet, flanked by canopy-covered rows of 16 to 24 parking spaces, with each space having its own payment terminal, intercom speaker system and menu board.

Earnings History for Sonic Corp. (NASDAQ:SONC)

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