- Sonic (NASDAQ:SONC) is off 2.9% after hours after revenue slipped 25% Y/Y and missed expectations amid a refocus on franchising in the company's Q3 earnings.
- EPS was flat on a non-GAAP basis (at $0.43) but rose 42% on a GAAP basis, to $0.44.
- Same-store sales fell 1.2% (down 1.1% at franchises, down 3.2% at company drive-ins).
- But the results showed improvement in underlying sales and store profits, CEO Cliff Hudson says. "Despite continued sluggish traffic, we are working to improve same-store sales this summer and beyond, with new product news, targeted value and quality customer service."
- Drive-in margins increased by 40 basis points.
- For the full year, the company still expects EPS down 2-5% as same-store sales fall about 2.5% systemwide. It's forecasting capex of $46M-$48M and free cash flow of $55M-$60M.
- Conference call to come at 5 p.m. ET.
- Press Release
- Now read: Bandera Partners Now Controls 15.6% Of Famous Dave's
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