Sonic Corp. (NASDAQ:SONC) Q1 2015 Earnings Conference Call - Final Transcript

Jan 06, 2015 • 05:00 pm ET


Sonic Corp. (NASDAQ:SONC) Q1 2015 Earnings Conference Call - Final Transcript


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Good afternoon and thank you for standing by. Welcome to the Sonic Corporation's Fiscal First Quarter 2015 Earnings Call. At this time all participants are in a listen only mode. Following the formal remark we will conduct a question and answer session. Instructions will provided at that time for you to queue for question. As a reminder, today's presentation is being recorded. I would now like to turn the conference over to Ms. Claudia San Pedro, Vice President of Investor Relations and Communications, and Treasurer.

Claudia San Pedro

Good afternoon everyone. We are pleased to host this conference call regarding results issued this afternoon for the fiscal first quarter of 2015, which ended on November 30th, 2014.

(Forward-Looking Cautionary Statements)

Unidentified Speaker

Lastly, I would like to point out that remarks made during this conference call are based on time-sensitive information that is accurate only as of today's date, January 6, 2015.

The archived replay of this conference call webcast will be available through January 13, 2015. This call is the property of Sonic Corp. Any distribution, transmission, broadcast or rebroadcast of this call in any form without the expressed written consent of the company is prohibited.

We have posted our fiscal fourth quarter earnings slide show presentation on the Investors section of our website for your review both during this conference call and after the conference call for up to 30 days. We have also scheduled this call, which includes the Q&A portion, to last one hour. If we have not gotten to your question within that time slot, please contact me at area code 405-225-4846 and I will make the appropriate arrangements to answer your questions.

With that out of the way, I will turn the call over to Cliff Hudson, the company's CEO.

Cliff Hudson

Thank you, Claudia, and thanks to each of you for participating in our conference call today. We've had a really good, great first fiscal quarter and it's a great start to our -- this fiscal year 2015. So we're, as you might imagine, pleased to share the results for that quarter ended November.

The quarter particularly experienced very strong same-store sales growth, as you now know, 8.5% for the system, which is also the sales growth for our franchisees drive-ins. Our company's store drive-ins had strong same-store sales growth as well, 7.9% increase.

One of the very nice things about the dynamics of the quarter was what a significant role new traffic, additional traffic played in contributing to same-store sales growth. And another very nice feature given the strategy of our business over time is that the same-store sales growth occurred across all daypart, with this five daypart store business. So, really very healthy dynamics about the business, and we'll get more in details about that today and happy to talk to you about the year after as well.

Another nice thing about the business on the quarter, 70 basis-point margin improvement. We also opened 13 new stores during the quarter, as you know, we've paid our first quarterly dividend