Sonic Corp. (SONC) announced that a challenging economic environment continued to constrain consumer discretionary spending and sales in the fourth quarter, with Sonic's same-store sales declining an estimated 4.5% for the system and 5.4% for partner drive-ins. These declines are improvements from the company's sales performance for the third fiscal quarter and reflect the positive impact of Sonic's sales-driving initiatives. Traffic for the quarter was relatively flat versus the prior year.
For fiscal 2010, Sonic expects net income per share to increase in the range of 10% to 12% from fiscal 2009 reported earnings, excluding special gains and impairment charges. Analysts polled by Thomson Reuters expect the company to report earnings of $0.80 per share for fiscal 2010. Analysts' estimates typically exclude special items.
For fiscal 2010, Capital expenditures is expected to be in the range of $30 million - $40 million. The company expects flat same-store sales at both partner and franchise drive-ins.
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