Sonic Corp. reported higher third-quarter profit as the
fast-food chain continues to benefit from higher customer traffic
and larger sales checks, leading the company to again raise its
projections for the year.
The drive-in chain, known for its classic '50s drive-in feel,
now projects per-share profit to increase 27% to 29% for the year
that ends Aug. 31, compared with its earlier view of 25% to 27%.
Wall Street analysts had called for a 29.8% increase.
Shares, up nearly 26% for the year, fell 4% to $32.86 in
after-hours trading.
Sonic started in 1953 in Shawnee, Okla., as a hamburger and root
beer stand. It revolutionized the ordering process by installing
curbside speakers that allowed customers to place orders without
leaving their cars: "Service at the Speed of Sound."
The company operates more than 3,500 restaurants styled after
'50s drive-ins, including car hops and servers at some locations
who deliver orders on roller skates.
Overall, for the period ended May 31, Sonic reported a profit of
$20.4 million, or 38 cents a share, up from $16.8 million, or 30
cents a share, a year earlier. Adjusting for tax impacts, the
company's profit for the quarter was 36 cents a share. Revenue rose
8% to $164.7 million.
Analysts had projected 36 cents a share on $164.2 million in
revenue.
Sales at established locations, open for at least 15 months,
rose 6.1%. Last quarter, the Oklahoma City chain reported an 11.5%
increase.
Sales at established locations are expected to increase in the
mid-single digits.
Write to Maria Armental at maria.armental@wsj.com
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