Same-store sales for Sonic’s company-operated restaurants dropped 8.9% and franchisee comps fell 7.3% for the fiscal quarter ended Feb. 28, the result of bad weather, sluggish spending and heightened competition, the company said.
The franchisor noted that it faced tough comparisons with the year-ago quarter, when same-store sales grew 6.5% systemwide. The chainwide decrease for this year was 7.4%.
CEO Cliff Hudson said in a statement that results should improve in coming months because of new products and offers aimed at price-sensitive consumers.
Overall, revenues declined 25.0% to $100.2 million, and net income was essentially flat at $11 million. The revenue figure reflects the company's refranchising program.