Sonic Celebrates 7.3% Same-Store Sales Growth for Fiscal 2015
September 14 2015 - 06:22PM
Business Wire
Same-Store Sales Growth for the Fourth Fiscal
Quarter 2015 Was 4.9%
Fourth Fiscal Quarter 2015 Earnings Conference
Call Date Announced
Sonic Corp. (NASDAQ:SONC), the nation's largest chain of
drive-in restaurants, today announced system-wide same-store sales
for its fiscal 2015 of 7.3%. Same-store sales growth reflected an
increase of approximately 6.9% at company drive-ins and 7.3% at
franchise drive-ins for the year ended August 31, 2015. The Company
also announced that system-wide same-store sales for its fourth
fiscal quarter increased approximately 4.9%. Same-store sales
growth reflected an increase of approximately 4.5% at company
drive-ins and approximately 4.9% at franchise drive-ins for the
fourth fiscal quarter.
“Fiscal 2015 was a great year for our business and brand. Our
multiple initiatives focused on product innovation, multi-day part
promotions and effective media, all of which drove annual
same-store sales growth of 7.3%. This is particularly noteworthy
given our strong performance in fiscal 2014,” said Cliff Hudson,
Sonic Corp. CEO. “We also completed $124 million of share
repurchases and initiated a quarterly dividend building shareholder
value.
“Over the past five years we have driven consistent, positive
same-store sales and solid earnings per share growth through our
multi-layered growth strategy, which incorporates same-store sales
growth, operating leverage, deployment of free cash1, increasing
royalty revenues and new drive-in development. We are especially
pleased that we have repurchased more than $270 million of
outstanding shares since fiscal 2011, representing over 25% of our
outstanding shares in that time period.” Hudson continued, “Looking
forward, we believe our growth strategy with multiple sales and
profit initiatives complemented by new unit growth and our robust
share repurchase program and dividends will continue to optimize
shareholder value and drive double-digit earnings per share in the
near term and long term.”
Fiscal Year 2016 Outlook
While the macroeconomic environment may impact results, the
Company expects its initiatives to drive 14% to 18% earnings per
share growth for fiscal 2016. The outlook for fiscal 2016
anticipates the following elements:
- 2% to 4% same-store sales growth for
the system;
- Royalty revenue growth from same-store
sales improvements and new unit development;
- 50 to 60 new franchise drive-in
openings, with another year of net unit growth for the system;
- Drive-in-level margin improvement
between 75 to 125 basis points, depending upon the degree of
same-store sales growth at company drive-ins;
- Selling, general and administrative
expenses of $81.5 million to $82.5 million reflecting increased
investment in human resources to support brand initiatives;
- Depreciation and amortization expense
of $45.5 million to $46.5 million as a result of capital investment
in fiscal 2016;
- An income tax rate between 36.5% to
37.5%;
- The planned repurchase of $126 million
of stock across the fiscal year, with $19 million of the previously
announced $145 million authorization purchased in fiscal 2015;
and
- An expected quarterly cash dividend of
$0.11 per share.
1 Free cash flow is defined as net income plus depreciation,
amortization and stock compensation expenses, less capital
expenditures.
Fourth Fiscal Quarter 2015 Earnings Call
The Company will release results for the quarter ended August
31, 2015 at approximately 4:01 PM ET on Monday, October 19, 2015.
The Company will host a conference call to review financial results
at 5:00 PM ET that evening. The conference call can be accessed
live over the phone by dialing (888) 455-2260 or (719) 325-2494 for
international callers. A replay will be available one hour after
the call and can be accessed by dialing (877) 870-5176 or (858)
384-5517 for international callers; the conference ID is 9318637.
The replay will be available until Monday, October 26, 2015. An
online replay of the conference call will be available
approximately two hours after the conclusion of the live broadcast.
A link to this event may be found on the company's investor
relations website at http://ir.sonicdrivein.com/.
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/20150914006374/en/
Sonic Corp.Claudia S. San Pedro, 405-225-4846Executive Vice
President and Chief Financial Officer
Sonic (NASDAQ:SONC)
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