Yahoo Finance Sonic 1Q net income rises 34 percent
Drive-in restaurant chain Sonic says 1Q net income up 34 percent on higher sales; shares jump
NEWS: Sonic Corp. said Monday that its fiscal first-quarter net income rose 34 percent due to higher sales at its drive-in restaurants and a slight drop in costs. The company's shares rose in after-hours trading.
DETAILS: The company, which is based in Oklahoma City, runs a chain of more than 3,500 drive-in restaurants. Sonic said that it got a boost in its September-November quarter from a "Summer of Shakes" promotion, which continued into September, its new spicy chicken sandwich and a "Cheesecake Bites" dessert.
NUMBERS: Net income rose to $8.2 million, or 14 cents per share, from $6.1 million, or 11 cents per share, in the same quarter a year ago.
Adjusted to exclude a tax benefit, the company reported earnings of 13 cents per share. That matches what Wall Street analysts were expecting, according to FactSet.
Revenue edged up less than 1 percent to $126.7 million. Analysts expected revenue of $127.4 million.
But sales at stores open at least a year rose 2.2 percent. Sales at stores open a year is considered an important indicator of financial performance as it strips away the impact of recently opened and closed stores, and measures growth at ongoing locations.
Total costs fell less than 1 percent, to $108.3 million. Interest expense also dropped.
FUTURE: For the year, the company expects adjusted earnings per share to rise 14 percent to 15 percent from 2013, suggesting profit of 82 to 83 cents in fiscal 2014. Analysts expected earnings of 83 cents per share.
STOCK: In after-hours trading, shares rose 75 cents, or 3.9 percent, to $20. They closed at $19.25 Monday.
