Sonic Corp. (NASDAQ: SONC) released its financial results for the third quarter of fiscal 2018. With earnings beating expectations but revenue missing estimates, shares of the company dropped 7% in the extended session on Tuesday.
“Our third quarter same-store sales performance reflects a material improvement in trend, driven by ongoing initiatives to increase marketing reach, refresh our advertising creative and introduce relevant new products, including the Sonic Signature Slinger and Pretzel Twist,” Cliff Hudson, the CEO of Sonic Corp, said in the statement on Tuesday.
According to the company, net income for the third quarter increased from $18.8 million, or 44 cents per share, for the same period last year, to $21.6 million, or 58 cents per share. Adjusted earnings per share was 52 cents per share for the third quarter, beating analysts’ estimates of 49 cents per share.
Additionally, revenue for the quarter increases dropped from $124 million for the same period last year to $118.3 million. The results missed analysts’ expectation of $118.9 million.
The company also provided guidance for the full year 2018. The company expected its adjusted earnings per share to increase 3% to 6% year over year, excluding the impact of tax reform. In addition, same-store sales for the system was expected to be down 1% to flat year over year.
“Looking ahead, we expect to continue to benefit from fully integrated media strategies and strong product innovation. On the product front, we are now promoting new Chicken Tenders as part of a $3.99 Crispy Tender Dinner, as well as Snow Cone Slushes featuring innovative flavors such as Pickle Juice and Tiger's Blood,” Cliff continued.