Newspaper article THE JOURNAL RECORD

Sonic Posts Record 2nd Quarter Results

Newspaper article THE JOURNAL RECORD

Sonic Posts Record 2nd Quarter Results

Article excerpt

OKLAHOMA CITY (JR) -- Sonic on Tuesday reported record results for the second fiscal quarter ended Feb. 28.

Net income for the quarter rose 12 percent to $3.5 million from $3.2 million for the second quarter of the previous fiscal year. Diluted earnings per share rose 17 percent to 27 cents per share from 23 cents per share.

Revenues for the quarter increased 18 percent to $44.8 million from $38.1 million. Operating income was up 17 percent to $6.3 million from $5.4 million for the second quarter of the previous fiscal year. Oklahoma City-based Sonic's results for the quarter reflected continued strong growth in same-store sales and improved operating margins in its own drive-ins. Sales and earnings also reflected the ongoing addition of new drive-ins to the Sonic chain, which now includes more than 1,740 units in 27 states. Customers continue to respond in a positive way to the company's consistent marketing strategy, said Clifford Hudson, president and CEO. "Our 34 percent increase in systemwide marketing expenditures in fiscal 1998 has allowed us to expand Sonic's prime media exposure and should result in even greater brand awareness with current and new customers," Hudson said. Sonic continues to have higher same-store sales at retrofitted drive-ins. "With this positive impact, which continues to meet or exceed our expectations, the Sonic 2000 retrofit program will play a key role in growing our grand image, as well as increasing sales," he said. At least 75 company-owned and 100 franchised drive-ins are expected to be retrofitted by the end of the current fiscal year. Comparable store sales for company-owned drive-ins were up 6.5 percent for the second fiscal quarter and 5.9 percent for the first six months of the fiscal year. On a system-wide basis, comparable store sales increased 8.1 percent for the quarter and 8. …

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