Sonic drives 4.6% gain in Q4 comp sales

Executives for Sonic Corp. credited the drive-in chain’s investments in technology, such as digital menu boards and a new point-of-sale system, for driving unit growth and same-store sales, leading to a 9-percent gain in net income for its fourth quarter and a 15-percent jump for its 2014 fiscal year. “In fiscal 2014, we completed implementation of these initiatives in all company drive-ins, and we will begin the roll-out to franchise locations this winter,” chief executive Cliff Hudson said in a statement. “We expect these initiatives to complement our innovative product pipeline and media strategies to drive improved sales and profits over the next several years.” For the Aug. 31-ended fourth quarter, Sonic reported a profit of $18.8 million, or 34 cents per diluted share, compared with $17.2 million, or cents per diluted share, a year earlier. Revenue increased 3.1 percent to $163.8 million. Fourth-quarter same-store sales increased 4.6 percent, reflecting gains of 4.5 percent at franchised drive-ins and 4.9 percent at company-owned units. Full-year net income for Sonic was $47.4 million, or 84 cents per diluted share, compared with $41.3 million, or 72 cents per diluted share, for fiscal 2013. Revenue increased 1.8 percent to $552.3 million for the full year. Sonic’s full-year same-store sales increased 3.5 percent, which comprised a 3.5-percent gain at both franchised and company-owned restaurants for fiscal 2013. Sonic expects to open between 50 and 60 franchised drive-ins in fiscal 2015 and produce an annual same-store sales increase in the low-single digits. Corporate stores are expected to outperform franchised locations next year as a result of the menu board and POS upgrades in place at all company-owned drive-ins.