Sonic: A Restaurant with Risks

There is no question that Sonic Corporation (SONC) has arguably the most distinct business model in the quick-serve restaurant industry. However, is this enough to validate an investment in the franchise?



After lowering its outlook for the fiscal year, from between $0.55 - $0.60 to $0.50 - $0.55 per share, Sonic announced on June 21, 2010 that its earnings for the third quarter were a disappointing $0.18 per share. This figure is lower than what analysts predicted by 1 to 4 cents per share, and even includes a 3 cent tax benefit. Without including special items, this marks a year over year decline of almost 40%.

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Sonic: A Restaurant with Risks originally appeared on BloggingStocks on Fri, 25 Jun 2010 18:00:00 EST. Please see our terms for use of feeds.

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Sonic Drive-In - Restaurant - BloggingStocks - Business - Fiscal year

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