Sonic Corporation (SONC) Picked Up

Company Profile:

Sonic Corp. operates and franchises a chain of drive-in restaurants (Sonic Drive-Ins) in the United States. The Company operates in two segments. The Drive-Ins segment consists of the drive-in operations in which the Company owns a controlling ownership interest and derives its revenues from operating drive-in restaurants. The Franchise Operations segment consists of franchising activities and derives its revenues from royalties, franchise fees and lease revenues received from franchisees. As of March 13, 2015, the company operated 3,517 restaurants in 44 states. It also leases signs and real estate. The company was founded in 1953 and is headquartered in Oklahoma City, Oklahoma.

Recent News:

Sonic doubled earnings per share for second fiscal quarter of 2015. Net income per diluted share was $0.14 compared with net income per diluted share of $0.07 in the prior-year period.

The company repurchased $75 million of stock through accelerated stock repurchase transactions representing approximately 4% of its outstanding stock. Exec. Vice Pres. & CFO and an insider Stephen Vaughan lately made a sale of 36,581 company shares having a total value $1,104,962 at an avg stock price per share of $30.2.

Sonic Corp. will release results for the quarter ended May 31, 2015 after the market close on June 22, 2015. The company will host a conference call to review financial results on Monday, June 22, 2015, at 5:00 PM ET.

 

Fundemental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SONC’s strengths can be seen in its better growth and strong profitability. Its net income has steadily increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 50.04. The P/E ratio indicates it is in line with the average P/E ratio of the industry. We rate Sonic Corp. (SONC) a STRONG BUY.

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