Sonic Corp (SONC) has reported a 22.13 percent rise in profit for the quarter ended May 31, 2017. The company has earned $18.75 million, or $0.44 a share in the quarter, compared with $15.35 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $18.33 million, or $0.43 a share compared with $21.08 million or $0.43 a share, a year ago. Revenue during the quarter dropped 24.96 percent to $123.99 million from $165.24 million in the previous year period. Gross margin for the quarter expanded 973 basis points over the previous year period to 52.57 percent. Total expenses were 71.42 percent of quarterly revenues, down from 76.47 percent for the same period last year. This has led to an improvement of 505 basis points in operating margin to 28.58 percent.
Operating income for the quarter was $35.44 million, compared with $38.88 million in the previous year period.
"Our third quarter results reflect the expected improvement in underlying sales and store profit versus the first half of the fiscal year, driven by a more balanced promotional calendar, including a reinvigorated SONIC Summer Nights promotion featuring our Real Ice Cream Slush," said Cliff Hudson, Sonic Corp. chief executive officer. "Despite continued sluggish traffic, we are working to improve same-store sales this summer and beyond, with new product news, targeted value and quality customer service."
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