Wednesday, March 27, 2013

Investopedia: Sonic Still In A Tricky Spot

Try as it might, drive-in quick service restaurant (QSR) Sonic (Nasdaq:SONC) just can't seem to get everything working at top form in its business model. While the company has an innovative (some might say “quirky”) menu that really does stand out from the offerings at McDonald's (NYSE:MCD), Burger King (NYSE:BKW), and Wendy's (NYSE:WEN), and has looked to refine its promotional activity and value-priced offerings, the company has made only modest progress in terms of growth.

As it stands today, analyst expectations on Sonic are pretty bifurcated. There's a small group that believe that Sonic will regain its growth momentum and do significantly better from here, while the larger group is more pessimistic and calls for Sonic to basically bump along as it has for some time now. While these shares have been strong over the past year and have recently broken out to a multi-year high, further gains could well be in store if the optimists are right.

Read more here:
http://www.investopedia.com/stock-analysis/032713/sonic-still-tricky-spot-sonc-wen-jack-mcd-bkw-cmg-pnra.aspx

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