(RTTNews) - Sonic Corp. (SONC: News ), an operator of a chain of quick-service drive-in restaurants, Tuesday reported a 17% decline in profit for the fourth quarter, mainly reflecting lower revenues from restaurant sales at partner drive-ins.

Net income for the fourth quarter declined to $16.89 million or $0.28 per share from $20.24 million or $0.33 per share in the previous year. Results for the quarter included after-tax impact of a refranchising gain of $1.38 million and after-tax impact of an impairment provision of $2.01 million.

On an adjusted basis, net income declined to $17.52 million or $0.29 per share for the quarter from $18.88 million or $0.31 per share in the same quarter of the previous year.

On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.27 for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter declined 23% to $173.83 million from $226.91 million in the earlier year, yet topped analysts' estimate of $170.06 million.

Partner Drive-In sales declined to $128.40 million from $186.39 million last year. Franchise royalties revenue rose to $37.94 million from $35.16 million and Franchise fees rose to $1.63 million from $1.50 million a year ago. Gain on sale of Partner Drive-Ins declined to $2.24 million from $2.63 million last year. Other revenues increased to $3.60 million from $1.23 million in the previous year.

For the fourth fiscal quarter, system-wide same-store sales declined 4.5% versus a decrease of 0.6% for the same quarter last year.
System-wide new drive-in openings totaled 41, compared to 58 in the fourth quarter last year, reflecting primarily the company's recent decision to slow partner drive-in development in conjunction with its refranchising initiative. The company's franchisees opened 40 drive-ins versus 45 drive-ins in the same period last year.

For the fiscal 2009, net income declined to $49.44 million or $0.81 per share from $60.32 million or $0.97 per share last year. On an adjusted basis, yearly net income declined to $44.29 million or $0.72 per share from $58.77 million or $0.94 per share last year.

Total revenues for the year declined to $718.79 million from $804.71 million a year ago.

Analysts estimated the company to report earnings of $0.71 per share on revenues of $705.74 million for the fiscal year.

SONC closed Tuesday's regular trading at $11.17, down 0.06 or 0.53%, on a volume of 1.20 million shares on the Nasdaq.

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by RTT Staff Writer

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