In a report released today, Brian Bittner from Oppenheimer reiterated a Hold rating on Sonic (NASDAQ: SONC). The company’s shares closed yesterday at $26.61.
Bittner commented:
“Into Sonic’s F3Q18 results, it appears ’18 guidance requires SSS to turn positive this spring/summer. And after seven quarters in a row of negative comps, this implies trends now accelerate from strategies around advertising, targeted value and improved mobile order/pay. The Street similarly projects a sustained turn to positive comps from here. But without a broader quick-service industry lift or an ease in competition, this looks ambitious to us, and we maintain our Perform rating (moved to in at $27.67). Improving SSS are the obvious key to unlocking healthier valuation, with financial engineering complete and a FCF yield now in line with JACK’s and only a slight discount to WEN’s.”
According to TipRanks.com, Bittner is a 5-star analyst with an average return of 11.5% and a 70.8% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Jack In The Box Inc, and Cheesecake Factory.
Sonic has an analyst consensus of Hold, with a price target consensus of $27.
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Sonic’s market cap is currently $1B and has a P/E ratio of 15.29. The company has a Price to Book ratio of -3.97.
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Sonic Corp., through its subsidiaries, engages in the operation and franchising of a chain of drive-in restaurants. It also owns and leases properties to franchisees and other parties. Its product includes specialty drinks, ice cream desserts, made-to-order cheeseburgers, chicken entrees, hand-made onion rings, and tater tots.
