Drive-in restaurant chain Sonic reports total revenue of $118.3m

28th June 2018 (Last Updated June 28th, 2018 11:04)

American drive-in restaurant chain Sonic has reported a total revenue of $118.3m, a $6m decline, in the third quarter ending 31 May 2018.

Drive-in restaurant chain Sonic reports total revenue of $118.3m
Sonic reports its third fiscal quarter results. Credit: Mike Mozart.

American drive-in restaurant chain Sonic has reported a total revenue of $118.3m, a $6m decline, in the third quarter ending 31 May 2018.

The restaurant company also reported a 32% increase in its net income per dilute share to $0.58 against $0.44 in the previous year.

System-wide same-store sales of the restaurant chain decreased by 0.2% compared to the same period last year including a 0.2% decline in franchise drive-in sales and 0.2% increase in company drive-in sales.

“Looking ahead, we expect to continue to benefit from fully integrated media strategies and strong product innovation.”

Sonic CEO Cliff Hudson said: “Our third quarter same-store sales performance reflects a material improvement in trend, driven by ongoing initiatives to increase marketing reach, refresh our advertising creative and introduce relevant new products, including the Sonic signature slinger and pretzel twist.

The drive-in restaurant chain anticipates a 1% decline in system-wide same-store sales flat year over year, as well as plans to open 50 to 55 new franchise drive-ins under the fiscal year 2018 outlook.

Hudson added: “Looking ahead, we expect to continue to benefit from fully integrated media strategies and strong product innovation.

“On the product front, we are now promoting new chicken tenders as part of a $3.99 Crispy Tender Dinner, as well as Snow Cone Slushes featuring innovative flavours such as Pickle Juice and Tiger’s Blood.

“We continue to roll out mobile order ahead technology across the system following a successful operational test in the third fiscal quarter.”

Hudson also noted that the company expects to focus on delivering a convenient and personalised experience to guests. Sonic also aims to drive improved traffic, accelerate operating profit growth and generate strong free cash flow.