Sonic stock (SONC) is flying high after the drive-in restaurant chain beat analyst expectations in its second quarter earnings report.
SONC reported fiscal second-quarter profit of $4.11 million, or seven cents a share, up from $3.58 million, or six cents a share, last year.
In addition, Sonic said it expects fiscal 2014 earnings per share to grow by 14% to 15%; analysts polled by Thomson Reuters expect an increase of under 14%.
“Our solid sales and financial performance resulted from multiple system-wide initiatives such as increased media efficiency, innovative products and layered day-part promotions. These initiatives complement our focus on service, products and pricing,” said Cliff Hudson, Chairman, Chief Executive Officer and President. “During the quarter we also began to roll out our technology initiatives, as well as signed new franchise development agreements for the development of 26 new drive-ins.
Sonic stock is up 10% in early morning trading.
There was also other good news in the report for Sonic stock: Systemwide same-store sales increased 1.4%, compared with flat same-store sales from last year, and overall costs and expenses fell 1.8%.
As noted by CEO Hudson, Sonic is updating its company technology over the next few years to address ordering, payments, and inventory management.
