Sonic reports record second-quarter earnings

Tuesday, March 26th 2002, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) _ Sonic Corp. reported record second-quarter earnings Monday, which it said was due in part to the success of its breakfast menu and more money spent in advertising.

``These strategies continue to drive above-target, same-store sales and higher franchising income and, coupled with a strong drive-in development program, are producing very healthy top- and bottom-line gains for Sonic,'' said Clifford Hudson, chairman and chief executive officer.

Net income for the Oklahoma City-based drive-in restaurant chain increased 29 percent in the second quarter to $7.1 million, compared with $5.5 million during the same quarter last year. Net income per diluted share rose 31 percent to 17 cents, compared with 13 cents a year ago.

Revenues for the quarter totaled $81.6 million, an increase of 29 percent from the $63.2 million last year.

For the six-month period ending Feb. 28, net income rose 19 percent to $16.7 million and total revenues grew 26 percent to $168.9 million.

All share and per-share amounts have been adjusted to reflect a three-for-two stock split distributed in February.

``Our new breakfast menu is producing higher sales and profits for the drive-ins participating in the program, and we continue to receive very positive customer feedback about the menu,'' Hudson said.

During the second quarter, Sonic opened 29 drive-ins, including 22 franchised restaurants, compared with a total of 31 in the same quarter last year. For the first half of fiscal 2002, the company opened 77 drive-ins, including 58 franchised restaurants, equaling the 77 drive-ins opened during the same period last year.

``As we pass this mid-year point, we are very pleased with the way Sonic has continued to grow and improve and we are excited about the prospects for the remainder of the fiscal year,'' Hudson said.