During the Sonic's first quarter, which ended Nov. 30, the chain opened 37 units. The company signed 26 new development agreements during the period, which are anticipated to lead to 152 drive-ins. Sonic currently has development agreements for 674 new units for the next several years.
While the company is expanding, it is also renovating its existing stores. The improvements, which include exterior models such as more lighting and an upgraded patio area, have been executed at 130 units. The rest of the chain is scheduled for an overhaul by the next three to four years.
Sonic's same-store sales during its Q1 rose 3.4% year over year. Franchise operated-stores, which account for just more than three-fourths of the company's portfolio rose 4%, while company-owned locations inched up 0.6%. Management is predicting a 2% to 4% comparable-store increase for the second quarter.
Total revenues rose 9%, to $174.8 million during the quarter, while net income fell 7%, to $15.3 million due to higher interest and debt termination expenses. Executives attributed the rise in sales to more frequent debit- and credit-card transactions, new menu items and a growing breakfast business.
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