Sonic's 4th-Q and annual net dips on interest; revs surge to 13% gain

Nation's Restaurant News,  Oct 29, 2007  

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OKLAHOMA CITY -- Sonic Corp., operator or franchisor of more than 3,300 namesake drive-ins, reported a 14-percent drop in its fourth-quarter net income to $22 million, from $25.5 million in the prior-year fourth quarter.

Sonic blamed interest expenses--which jumped to $11.3 million in the latest quarter, up from $2 million a year earlier--related to its tender offer for shares and other financing that was completed last October. The company said that its financing actions helped to push per-share profit for the fourth quarter ended Aug. 31 up 17 percent to 34 cents, from 29 cents a year ago. Revenue totaled $224.3 million, up 13 percent from $198 million a year ago. Sonic's systemwide same-store sales grew 3.1 percent for the quarter. For the full fiscal 2007, net income dipped 18 percent to $64.2 million while per-share profit increased 3 percent to 91 cents. Fiscal 2007 revenue rose 11 percent to $770.5 million.

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