Sonic Authorizes New $145 Million Share Repurchase Program
August 06 2015 - 5:54PM
Business Wire
Approves 22% Increase to Dividend Program in
Fiscal 2016
Sonic Corp. (NASDAQ:SONC), the nation's largest chain of
drive-in restaurants, today announced that its Board of Directors
has authorized a stock repurchase program for up to $145 million of
its common stock through August 31, 2016. Share repurchases may be
made from time to time in the open market or otherwise, including
through an accelerated share repurchase program, under the terms of
a Rule 10b5-1 plan, in privately negotiated transactions or in
round lot or block transactions.
The Company also announced that its Board of Directors has
approved the continuation of the Company's quarterly cash dividend
program. Beginning in the first fiscal quarter of 2016, the Company
expects to declare a quarterly dividend of $0.11 per share of
common stock, which represents an increase of 22% from the current
quarterly dividend of $0.09 per share.
“Our multi-layered growth strategy continues to generate ample
cash to optimize shareholder value," said Cliff Hudson, Sonic Corp.
CEO. "Over the past three years, we have returned in excess of $252
million to our shareholders through the repurchase of 15.1 million
shares of our common stock, or approximately 24% of our outstanding
shares. We believe that our dividend program complements the
repurchase program, while providing an additional lever to deliver
value to our shareholders. We remain confident as ever in our brand
and business model and in their capacity to provide this ongoing
return.”
The Company completed its fiscal 2015 share repurchase program
spending $105 million to repurchase more than 3.5 million shares of
its common stock, at an average price of $29.68 per share. As
previously announced, payment of a dividend of $0.09 per share is
set for August 21, 2015 to shareholders of record as of the close
of business on August 12, 2015.
Future declaration of quarterly dividends and the establishment
of future record and payment dates are subject to the final
determination of the company’s Board of Directors.
About Sonic
SONIC, America's Drive-In is the nation's largest drive-in
restaurant chain serving more than 3 million customers every day.
Nearly 90 percent of SONIC's 3,500 drive-in locations are owned and
operated by local business men and women. Over the past 60 years,
SONIC has delighted guests with signature menu items, more than 1.3
million drink combinations and friendly service by iconic Carhops.
To learn more about Sonic Corp. (NASDAQ/NM: SONC), please visit
sonicdrivein.com or follow us on Facebook and Twitter.
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements reflect management’s expectations regarding future
events and operating performance and speak only as of the date
hereof. These forward-looking statements involve a number of risks
and uncertainties. Factors that could cause actual results to
differ materially from those expressed in, or underlying, these
forward-looking statements are detailed in the company’s annual and
quarterly report filings with the Securities and Exchange
Commission. The company undertakes no obligation to publicly
release revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unforeseen events, except as required to be reported
under the rules and regulations of the Securities and Exchange
Commission.
SONC-F
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version on businesswire.com: http://www.businesswire.com/news/home/20150806006707/en/
Sonic Corp.Claudia San Pedro, 405-225-4846Executive Vice
President, Chief Financial Officer and Treasurer
Sonic (NASDAQ:SONC)
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