Sonic Corp (SONC) has reported an 1.33 percent rise in profit for the quarter ended Feb. 28, 2017. The company has earned $10.96 million, or $0.25 a share in the quarter, compared with $10.82 million, or $0.22 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6.62 million, or $0.15 a share compared with $9.02 million or $0.18 a share, a year ago. Revenue during the quarter dropped 24.78 percent to $100.16 million from $133.16 million in the previous year period. Gross margin for the quarter expanded 420 basis points over the previous year period to 42.86 percent. Total expenses were 77.41 percent of quarterly revenues, down from 83.32 percent for the same period last year. This has led to an improvement of 591 basis points in operating margin to 22.59 percent.
Operating income for the quarter was $22.63 million, compared with $22.21 million in the previous year period.
"Our second quarter results reflect a sluggish consumer environment, weather headwinds and share losses following exceptionally strong performance over the prior two years," said Cliff Hudson, Sonic Corp. chief execcutive officer. "As we enter the key spring and summer seasons, we believe a better balance of new product news and targeted value will result in sequential improvement in same-store sales and profitability. "Our unit growth, capital structure and technology initiatives are on track," continued Hudson.
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