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But even the Oklahoma City company, which has more than 3,500 drive-ins coast to coast, couldn't steer clear of the effects of the recession. In the third quarter, the 50-year-old company, dubbed "America's Drive-In," had a hiccup in its usually upbeat quarterly results. Net income per diluted share totaled 27 cents, a slight decline from the same quarter last year. Systemwide same-store sales declined 5.4 percent, and same-store sales at partner drive-ins (those in which the company owns a majority interest) declined 7.7 percent. Jim Huntzinger, the executive vice president and chief investment officer at BOK Financial Corp., said Sonic attempted to drive traffic in the recent quarter with its new Everyday Value Menu. "Sonic is very well run with operating margins generally in the lower 20 percent range and returns on capital typically around 20 percent," he said. "Sonic should also see some margin improvement over the next few quarters as the overall food basket begins to come down in price, hopefully offsetting the minimum wage hikes." Huntzinger said Sonic has now franchised 86 percent of its chain, up from 80 percent at the beginning of the year. "Sonic has felt that the increased emphasis towards the franchise model will help to make earnings more consistent," he said. Nancy Hollingshead 581-8363 nancy.hollingshead@tulsaworld.com To see more of the Tulsa World, or to subscribe to the newspaper, go to http://www.tulsaworld.com. Copyright (c) 2009, Tulsa World, Okla. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. For full details on Sonic Corp (SONC) click here. Sonic Corp (SONC) has Short Term PowerRatings of 4. Details on Sonic Corp (SONC) Short Term PowerRatings is available at This Link.
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