Fast-food restaurant chain Sonic (NASDAQ:SONC) reported a 2.8% increase at its more established stores during the third quarter, as sales trends improved on higher marketing spending despite a still-recovering economy.
The improvement in same-store sales – a key growth metric for retailers that measures sales at stores open longer than a year – was led by a 3.7% and 2.7% improvement in company drive-ins and franchise drive-ins, respectively.
Continue Reading Below
On a two-year basis, Sonic, which has been rapidly expanding north on the East Coast, said system-wide sales at its veteran stores are up 6.7%.
Sonic CEO Clifford Hudson said the gains during the period ended May 31 are a reflection of its “service, product quality and marketing initiatives.”
“We are very pleased with the sales trends we saw in the third quarter, despite economic and some restaurant-level cost challenges,” he said.