Sonic Corporation (NASDAQ:SONC) reported its latest quarterly earnings results after hours Tuesday, which missed expectations on the revenue front.
The fast food chin reported net income of 51 cents per diluted share, a 104% increase compared to the year-ago total of 25 cents per share. On an adjusted basis, the restaurant operator posted income of 17 cents per share, a 13% gain from the 15 cents per share it brought in during the year-ago period.
The figure was stronger than analysts’ adjusted earnings expectations of 16 cents per share by a penny, Sonic added in its second-quarter report of fiscal 2018. On the revenue front, the company brought in $88.1 million, missing the Wall Street consensus estimate of $94.4 million by more than $6 million.
The restaurant chain’s system same-store sales declined by 2.9% year-over-year due to a 2.8% same-store sales slide at franchise drive-ins and a 3.7% decrease at company drive-ins. Sonic’s company drive-in margins were favorable by 40 basis points.
Sonic opened eight new drive-ins during its second quarter, plus the company repurchased 1.2 million outstanding shares. “Our second quarter same-store sales decline reflected unfavorable weather and continued aggressive discounting by the competition,” said Cliff Hudson, Sonic Corp. CEO.
“We continued to support a simplified everyday value message via the Drive-In Duo in December and January, which featured a cheeseburger and shake for $3.99, and a Quarter-Pound Jr. Double Cheeseburger and Tots for $2.99 in February,” he added. “These types of broadly appealing value offerings provide a compelling price point and highlight Sonic’s quality differentiation.”
Sonic also missed Wall Street’s guidance for fiscal 2018 as the company is calling for earnings in the range of $1.43 to $1.50 per share on an adjusted basis, below the consensus of $1.52 per share.
SONC stock fell about 5.3% after the bell Tuesday.