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Sonic

DB:SO4
Snowflake Description

Acceptable track record with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SO4
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

Sonic Corp., through its subsidiaries, operates and franchises a chain of drive-in restaurants in the United States. The last earnings update was 45 days ago. More info.


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SO4 Share Price and Events
7 Day Returns
-2.4%
DB:SO4
-8.4%
DE Hospitality
-3.8%
DE Market
1 Year Returns
58.9%
DB:SO4
-24.8%
DE Hospitality
-17.5%
DE Market
SO4 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sonic (SO4) -2.4% 0.4% 25.7% 58.9% 35.2% 158.1%
DE Hospitality -8.4% -16.5% -18.2% -24.8% -21.1% 12.6%
DE Market -3.8% -5.7% -9.6% -17.5% -3.6% 8.4%
1 Year Return vs Industry and Market
  • SO4 outperformed the Hospitality industry which returned -24.8% over the past year.
  • SO4 outperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
SO4
Industry
5yr Volatility vs Market
Related Companies

SO4 Value

 Is Sonic undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sonic to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sonic.

DB:SO4 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SO4
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 9.5%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.728 (1 + (1- 21%) (46.46%))
0.995
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.54% + (0.995 * 9.46%)
9.95%

Discounted Cash Flow Calculation for DB:SO4 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sonic is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:SO4 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 66.55 73.39 70.29 67.31 64.47
Source Analyst x1 Analyst x3 Est @ -4.23% Est @ -4.23% Est @ -4.23%
Present Value
Discounted (@ 9.95%)
60.53 60.71 52.88 46.06 40.12
Present value of next 5 years cash flows $260.29
DB:SO4 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $64.47 × (1 + 0.54%) ÷ (9.95% – 0.54%)
$688.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $688.89 ÷ (1 + 9.95%)5
$428.70
DB:SO4 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $260.29 + $428.70
$688.99
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $688.99 / 35.69
$16.57
DB:SO4 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:SO4 represents 0.85859x of NasdaqGS:SONC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.85859x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 19.30 x 0.85859
€16.57
Value per share (EUR) From above. €16.57
Current discount Discount to share price of €37.34
= -1 x (€37.34 - €16.57) / €16.57
-125.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sonic is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sonic's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sonic's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SO4 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-08-31) in USD $1.89
NasdaqGS:SONC Share Price ** NasdaqGS (2018-12-07) in USD $43.49
Germany Hospitality Industry PE Ratio Median Figure of 10 Publicly-Listed Hospitality Companies 12.88x
Germany Market PE Ratio Median Figure of 413 Publicly-Listed Companies 16.9x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sonic.

DB:SO4 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SONC Share Price ÷ EPS (both in USD)

= 43.49 ÷ 1.89

22.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonic is overvalued based on earnings compared to the DE Hospitality industry average.
  • Sonic is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Sonic's expected growth come at a high price?
Raw Data
DB:SO4 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
-10.5%per year
Germany Hospitality Industry PEG Ratio Median Figure of 7 Publicly-Listed Hospitality Companies 1x
Germany Market PEG Ratio Median Figure of 273 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

DB:SO4 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.98x ÷ -10.5%

-2.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonic earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Sonic's assets?
Raw Data
DB:SO4 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-08-31) in USD $-8.12
NasdaqGS:SONC Share Price * NasdaqGS (2018-12-07) in USD $43.49
Germany Hospitality Industry PB Ratio Median Figure of 11 Publicly-Listed Hospitality Companies 2.5x
Germany Market PB Ratio Median Figure of 556 Publicly-Listed Companies 1.79x
DB:SO4 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SONC Share Price ÷ Book Value per Share (both in USD)

= 43.49 ÷ -8.12

-5.36x

* Primary Listing of Sonic.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sonic has negative assets, we can't compare the value of its assets to the DE Hospitality industry average.
X
Value checks
We assess Sonic's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Sonic has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SO4 Future Performance

 How is Sonic expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-10.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sonic expected to grow at an attractive rate?
  • Sonic's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Sonic's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Sonic's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SO4 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SO4 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts -10.5%
DB:SO4 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts -0.7%
Germany Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 10.9%
Germany Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 3.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SO4 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SO4 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-08-31
2020-08-31 418 106 58 9
2019-08-31 410 103 55 5
DB:SO4 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-08-31 424 92 71
2018-05-31 435 90 73
2018-02-28 441 87 71
2017-11-30 453 79 62
2017-08-31 477 75 64
2017-05-31 516 88 68
2017-02-28 557 105 65
2016-11-30 590 110 65
2016-08-31 606 116 64
2016-05-31 619 114 65
2016-02-29 619 118 70
2015-11-30 612 128 67

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sonic's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Sonic's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SO4 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Sonic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SO4 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-08-31 2.04 2.04 2.04 1.00
2020-08-31 1.81 1.89 1.71 6.00
2019-08-31 1.59 1.60 1.59 3.00
DB:SO4 Past Financials Data
Date (Data in USD Millions) EPS *
2018-08-31 1.89
2018-05-31 1.89
2018-02-28 1.75
2017-11-30 1.49
2017-08-31 1.47
2017-05-31 1.52
2017-02-28 1.40
2016-11-30 1.36
2016-08-31 1.32
2016-05-31 1.30
2016-02-29 1.38
2015-11-30 1.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sonic will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sonic's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sonic has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SO4 Past Performance

  How has Sonic performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sonic's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sonic's year on year earnings growth rate has been positive over the past 5 years.
  • Sonic's 1-year earnings growth exceeds its 5-year average (11.8% vs 11.5%)
  • Sonic's earnings growth has not exceeded the DE Hospitality industry average in the past year (11.8% vs 47.9%).
Earnings and Revenue History
Sonic's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sonic Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SO4 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-08-31 423.59 71.21 84.79
2018-05-31 435.40 73.44 86.60
2018-02-28 441.09 70.62 86.25
2017-11-30 453.14 61.98 87.70
2017-08-31 477.27 63.66 87.68
2017-05-31 515.82 68.27 88.91
2017-02-28 557.07 64.87 88.77
2016-11-30 590.07 64.73 91.26
2016-08-31 606.32 64.07 92.44
2016-05-31 619.47 64.93 94.65
2016-02-29 618.98 70.02 94.73
2015-11-30 612.04 66.86 92.09
2015-08-31 606.09 64.49 89.93
2015-05-31 594.59 57.01 87.22
2015-02-28 582.03 53.35 84.16
2014-11-30 565.55 49.79 81.90
2014-08-31 552.35 47.92 80.12
2014-05-31 547.38 41.29 79.51
2014-02-28 541.83 39.31 78.82
2013-11-30 543.23 38.78 78.40
2013-08-31 542.59 36.70 77.52
2013-05-31 534.72 39.01 77.07
2013-02-28 537.52 38.62 77.08
2012-11-30 541.46 36.72 77.69
2012-08-31 543.73 36.09 76.98
2012-05-31 543.97 33.87 64.62
2012-02-29 546.65 14.81 64.88

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Sonic has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Sonic used its assets more efficiently than the DE Hospitality industry average last year based on Return on Assets.
  • Sonic's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Sonic's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sonic has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SO4 Health

 How is Sonic's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sonic's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sonic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sonic's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Sonic's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Sonic has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sonic Company Filings, last reported 3 months ago.

DB:SO4 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-08-31 -288.85 721.19 39.84
2018-05-31 -273.26 723.25 44.87
2018-02-28 -252.74 723.40 64.24
2017-11-30 -237.28 685.23 23.53
2017-08-31 -201.76 647.75 22.34
2017-05-31 -173.10 620.75 52.05
2017-02-28 -157.69 613.24 33.89
2016-11-30 -118.19 588.08 41.09
2016-08-31 -75.64 588.67 72.09
2016-05-31 -58.46 602.19 99.36
2016-02-29 -33.22 517.74 36.11
2015-11-30 -20.74 506.53 36.82
2015-08-31 17.43 462.47 27.19
2015-05-31 18.61 466.42 22.92
2015-02-28 -0.33 507.11 27.23
2014-11-30 61.47 460.75 45.22
2014-08-31 62.68 464.06 35.69
2014-05-31 57.54 467.34 34.84
2014-02-28 46.27 472.02 35.12
2013-11-30 85.32 470.60 95.89
2013-08-31 77.46 474.16 77.90
2013-05-31 60.44 478.98 53.55
2013-02-28 48.76 483.67 42.49
2012-11-30 48.65 508.66 42.73
2012-08-31 59.25 513.47 52.65
2012-05-31 48.89 518.75 41.67
2012-02-29 48.99 523.41 33.95
  • Sonic has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Sonic's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (12.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
X
Financial health checks
We assess Sonic's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sonic has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SO4 Dividends

 What is Sonic's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.47%
Current annual income from Sonic dividends. Estimated to be 1.76% next year.
If you bought €2,000 of Sonic shares you are expected to receive €29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sonic's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.6%).
  • Sonic's dividend is below the markets top 25% of dividend payers in Germany (3.98%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SO4 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Germany Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 5.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 328 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SO4 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-08-31 0.76 1.00
2020-08-31 0.80 5.00
2019-08-31 0.74 7.00
DB:SO4 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-07-11 0.640 1.645
2018-04-12 0.640 2.265
2018-01-12 0.640 2.534
2017-10-26 0.640 2.441
2017-07-06 0.560 2.294
2017-04-20 0.560 1.998
2017-01-19 0.560 2.248
2016-10-20 0.560 2.149
2016-07-07 0.440 1.618
2016-04-07 0.440 1.411
2015-08-06 0.440 1.539
2015-07-09 0.360 1.237
2015-04-10 0.360 1.186
2015-01-29 0.360 1.119
2014-08-07 0.360 1.462

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Sonic has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Sonic only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Sonic's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Sonic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sonic afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sonic has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SO4 Management

 What is the CEO of Sonic's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
J. Hudson
COMPENSATION $3,155,246
AGE 64
TENURE AS CEO 23.7 years
CEO Bio

Mr. J. Clifford Hudson, also known as Cliff, has been the Chief Executive Officer of Sonic Corp. since April 1995. Mr. Hudson served as the President of Sonic Corp. since March 9, 2017 until February 2018, from April 2013 to January 2016, from November 2004 to May 1, 2008 and from April 1995 to January 2000. He served as Chief Operating Officer of Sonic from August 1993 to April 1995 and served as its Chief Financial Officer from August 1992 to August 1993. He has been the Chairman of the Board at Sonic Corp. since January 2000. He has served in various other offices of Sonic since 1984. He serves as the Chairman of National Trust for Historical Preservation. He serves as a Campaign Chairman of United Way of Central Oklahoma. From October 1994 to February 2001, he served as Chairman of the Board of the Securities Investor Protection Corporation. He has been a Director of Sonic Corp. since August 1993. He has been a Director of United Way of Central Oklahoma since March 2016. He serves as a Director of Oklahoma Medical Research Foundation. He has been a Trustee of the Ford Foundation since January 2006 and the National Trust for Historic Preservation since January 2001. In 1979, Mr. Hudson was an Editor of the International Law Journal, a publication of the Association of Student International Law Societies. He graduated from the University of Oklahoma and Georgetown University Law Center.

CEO Compensation
  • J.'s compensation has been consistent with company performance over the past year.
  • J.'s remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Sonic management team in years:

5.3
Average Tenure
51
Average Age
  • The average tenure for the Sonic management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

J. Hudson

TITLE
Chairman & CEO
COMPENSATION
$3M
AGE
64
TENURE
23.7 yrs

Claudia S. Pedro

TITLE
President
COMPENSATION
$1M
AGE
49
TENURE
0.9 yrs

Paige Bass

TITLE
Senior VP & General Counsel
COMPENSATION
$836K
AGE
49
TENURE
11.9 yrs

Eddie Saroch

TITLE
Senior Vice President of Franchise Relations
COMPENSATION
$675K
AGE
61
TENURE
15.3 yrs

John Budd

TITLE
Executive VP and Chief Strategy & Business Development Officer
COMPENSATION
$1M
AGE
51
TENURE
5.3 yrs

Corey Horsch

TITLE
VP, CFO & Treasurer
AGE
40
TENURE
0.8 yrs

Michelle Britten

TITLE
VP & Chief Accounting Officer
AGE
51
TENURE
2.9 yrs

Carolyn Cummins

TITLE
VP of Compliance & Corporate Secretary
AGE
60
TENURE
14.7 yrs

Christi Woodworth

TITLE
Vice President of Public Relations

Lori I. Habib

TITLE
VP & Chief Marketing Officer
AGE
38
TENURE
1.5 yrs
Board of Directors Tenure

Average tenure and age of the Sonic board of directors in years:

4.9
Average Tenure
61
Average Age
  • The tenure for the Sonic board of directors is about average.
Board of Directors

J. Hudson

TITLE
Chairman & CEO
COMPENSATION
$3M
AGE
64
TENURE
18.9 yrs

Jeffrey Schutz

TITLE
Lead Independent Director
COMPENSATION
$164K
AGE
67
TENURE
0.9 yrs

Kate Lavelle

TITLE
Independent Director
COMPENSATION
$166K
AGE
53
TENURE
6.9 yrs

Lauren Hobart

TITLE
Independent Director
COMPENSATION
$149K
AGE
50
TENURE
4.9 yrs

Federico Peña

TITLE
Independent Director
COMPENSATION
$154K
AGE
71
TENURE
17.9 yrs

Kathryn Taylor

TITLE
Independent Director
COMPENSATION
$149K
AGE
62
TENURE
8.9 yrs

Tony Bartel

TITLE
Independent Director
COMPENSATION
$150K
AGE
54
TENURE
4.9 yrs

Susan Thronson

TITLE
Independent Director
COMPENSATION
$150K
AGE
56
TENURE
3.7 yrs

R. Black

TITLE
Independent Director
COMPENSATION
$118K
AGE
63
TENURE
2.9 yrs

Steve Davis

TITLE
Independent Director
AGE
60
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. Feb 18 Sell Federico Peña Individual 12. Feb 18 12. Feb 18 -9,686 €20.04 €-194,154
19. Jan 18 Sell Federico Peña Individual 17. Jan 18 18. Jan 18 -9,155 €21.33 €-194,774
15. Dec 17 Sell Frank Richardson Individual 13. Dec 17 13. Dec 17 -50,000 €24.14 €-1,207,066
11. Dec 17 Sell Frank Richardson Individual 07. Dec 17 08. Dec 17 -50,000 €23.50 €-1,174,880
X
Management checks
We assess Sonic's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sonic has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SO4 News

External News
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SO4 Company Info

Map
Description

Sonic Corp., through its subsidiaries, operates and franchises a chain of drive-in restaurants in the United States. As of August 31, 2018, the company operated 3,606 Sonic Drive-Ins in 45 states, including 3,427 Drive-Ins owned and operated by franchisees; and 179 Drive-Ins owned and operated by the company. The company also owns and leases 162 properties; and sublease 48 properties to franchisees and other parties. Sonic Corp. was founded in 1953 and is headquartered in Oklahoma City, Oklahoma.

Details
Name: Sonic Corp.
SO4
Exchange: DB
Founded: 1953
$1,361,947,083
35,692,190
Website: http://www.sonicdrivein.com
Address: Sonic Corp.
300 Johnny Bench Drive,
Oklahoma City,
Oklahoma, 73104,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SONC Common Stock Nasdaq Global Select US USD 28. Feb 1991
DB SO4 Common Stock Deutsche Boerse AG DE EUR 28. Feb 1991
Number of employees
Current staff
Staff numbers
5,041
Sonic employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/07 21:23
End of day share price update: 2018/12/07 00:00
Last estimates confirmation: 2018/11/03
Last earnings filing: 2018/10/23
Last earnings reported: 2018/08/31
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.