What to Expect From Sonic Earnings
Restaurant operator Sonic is set to report its fiscal first-quarter financial results after the markets close on Tuesday.
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Sonic Corp. (NASDAQ: SONC) is set to report its fiscal first-quarter financial results after the markets close on Tuesday. The consensus estimates call for $0.23 in earnings per share (EPS) on $144.42 million in revenue. In the same period of the previous year, the restaurant operator posted EPS of $0.18 and revenue of $139.86 million.
The company recently announced the expansion of two existing franchise agreements and the addition of two new franchise agreements for a total of 33 new drive-ins to California over the next seven years.
The 33 drive-ins are planned for multiple markets across the state: 11 in Sacramento, 12 in the San Francisco Bay Area, three in west Los Angeles, five between Bakersfield and Stockton, and two in the Palm Springs area.
All planned drive-ins are expected to be serving customers by 2022, bringing over 1,500 new jobs to the state over seven years. There are currently 68 open drive-ins operating in California, and this announcement would bring the total of upcoming drive-ins to 101.
A few analysts recently weighed in on Sonic prior to its earnings report:
- Oppenheimer reiterated an Outperform rating.
- Stephens reiterated a Buy rating with a $34 price target.
- Piper Jaffray reiterated an Overweight rating but lowered its price target to $37 from $42.
- Sterne Agee CRT has a Buy rating but lowered its price target to $34 from $41.
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Over the past 52 weeks, Sonic has outperformed the market, with the stock up 15.7%, as of Monday’s close.
Shares of Sonic were trading at $30.98 Tuesday, with a consensus analyst price target of $33.23 and a 52-week trading range of $22.72 to $36.73.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
