Zacks Investment Research Lowers Sonic Drive-In (SONC) to Sell

Zacks Investment Research lowered shares of Sonic Drive-In (NASDAQ:SONC) from a hold rating to a sell rating in a report issued on Saturday.

According to Zacks, “Sonic Corp., America’s Drive-in has built a dominant position in the drive-in restaurant business. They did it by sticking to what made drive-ins so popular in the first place: made-to-order American classics, signature menu items, speedy service from friendly Carhops and heaping helpings of fun and personality. Today, Sonic is the largest chain of drive-in restaurants in America. As a business, they continue to thrive, maintaining strong real sales growth, industry-leading customer frequency and high returns for their stockholders. So take a cruise through their website to learn more about our company and the people who help make it an American success story. “

How to Become a New Pot Stock Millionaire

Several other analysts have also recently weighed in on the stock. Barclays cut their price target on shares of Sonic Drive-In from $28.00 to $25.00 and set an underweight rating on the stock in a report on Wednesday, March 28th. Guggenheim reiterated a buy rating and issued a $31.00 price target (up previously from $29.00) on shares of Sonic Drive-In in a report on Thursday, December 28th. BidaskClub upgraded shares of Sonic Drive-In from a sell rating to a hold rating in a report on Tuesday, March 20th. Oppenheimer cut shares of Sonic Drive-In from an outperform rating to a market perform rating and set a $29.00 target price on the stock. in a report on Thursday, January 4th. Finally, Cowen dropped their target price on shares of Sonic Drive-In from $29.00 to $28.00 and set a market perform rating on the stock in a report on Wednesday, March 28th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and six have assigned a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $28.67.

NASDAQ:SONC opened at $26.31 on Friday. The firm has a market capitalization of $974.57, a P/E ratio of 21.05, a P/E/G ratio of 1.22 and a beta of 1.47. Sonic Drive-In has a twelve month low of $22.11 and a twelve month high of $30.05. The company has a current ratio of 2.51, a quick ratio of 2.51 and a debt-to-equity ratio of -2.85.

Sonic Drive-In (NASDAQ:SONC) last released its quarterly earnings results on Tuesday, March 27th. The restaurant operator reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.15 by $0.02. The business had revenue of $88.10 million for the quarter, compared to analysts’ expectations of $94.34 million. Sonic Drive-In had a net margin of 16.01% and a negative return on equity of 25.75%. The firm’s revenue for the quarter was down 12.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.15 earnings per share. analysts predict that Sonic Drive-In will post 1.47 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 18th. Stockholders of record on Wednesday, May 9th will be issued a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.43%. The ex-dividend date of this dividend is Tuesday, May 8th. Sonic Drive-In’s dividend payout ratio (DPR) is presently 51.20%.

In related news, Director Federico F. Pena sold 4,575 shares of the company’s stock in a transaction dated Wednesday, January 17th. The shares were sold at an average price of $25.99, for a total value of $118,904.25. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Federico F. Pena sold 9,686 shares of the company’s stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $24.61, for a total transaction of $238,372.46. The disclosure for this sale can be found here. Insiders own 8.28% of the company’s stock.

A number of institutional investors have recently made changes to their positions in the stock. BlackRock Inc. boosted its stake in Sonic Drive-In by 1.7% in the 4th quarter. BlackRock Inc. now owns 5,171,678 shares of the restaurant operator’s stock worth $142,119,000 after purchasing an additional 86,842 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in Sonic Drive-In by 0.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,962,894 shares of the restaurant operator’s stock worth $49,955,000 after purchasing an additional 15,963 shares in the last quarter. Fenimore Asset Management Inc. boosted its stake in Sonic Drive-In by 0.6% in the 4th quarter. Fenimore Asset Management Inc. now owns 861,167 shares of the restaurant operator’s stock worth $23,665,000 after purchasing an additional 5,327 shares in the last quarter. Atlanta Capital Management Co. L L C boosted its stake in Sonic Drive-In by 168.4% in the 4th quarter. Atlanta Capital Management Co. L L C now owns 810,109 shares of the restaurant operator’s stock worth $22,262,000 after purchasing an additional 508,282 shares in the last quarter. Finally, Millennium Management LLC raised its position in Sonic Drive-In by 240.0% in the 4th quarter. Millennium Management LLC now owns 631,237 shares of the restaurant operator’s stock worth $17,346,000 after buying an additional 445,606 shares during the last quarter.

TRADEMARK VIOLATION WARNING: This news story was reported by Dispatch Tribunal and is owned by of Dispatch Tribunal. If you are viewing this news story on another publication, it was copied illegally and reposted in violation of United States and international trademark & copyright legislation. The legal version of this news story can be viewed at https://www.dispatchtribunal.com/2018/04/17/zacks-investment-research-lowers-sonic-drive-in-sonc-to-sell.html.

About Sonic Drive-In

Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.

Get a free copy of the Zacks research report on Sonic Drive-In (SONC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Sonic Drive-In (NASDAQ:SONC)

Receive News & Ratings for Sonic Drive-In Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sonic Drive-In and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply