Sonic Corporation (NASDAQ:SONC) in the first quarter of FY 18 has reported the adjusted earnings per share of 30 cents, beating the analysts’ estimates for the adjusted earnings per share of 25 cents according to Zacks Investment Research. The company had reported the adjusted revenue growth of 35.9 percent to $105.4 million in the first quarter of FY 18. The company has posted fall in the same-store sales modestly compared to the prior year due to the continued intense competitive pressure and unfavorable weather. Further, the company has posted system same-store sales fall of 1.7%, consisting of a 1.6% same-store sales decrease at franchise drive-ins and a 3.2% decrease at company drive-ins. The company had opened 5 new drive-ins in the first quarter.

Furthermore, in the first quarter of FY 18, the company had repurchased 1.7 million shares, or 4% of shares outstanding, for $40.8 million.

Additionally, in FY 18, the adjusted earnings per share is expected to increase 5% to 10% year over year, excluding the impact of the recently passed federal tax legislation. In FY 18, there is an expectation of approximately 0% to 2% same-store sales growth for the system, 70 to 80 new franchise drive-in openings and drive-in-level margins in the range of 15.1% to 15.7%, depending upon the degree of same-store sales growth at company drive-ins. In FY 18, the selling, general and administrative expenses is expected to be in the range of approximately $76 million to $78 million, depreciation and amortization expense expected to range between $40 million to $42 million and net interest expense of approximately $32 million to $34 million. The capital expenditures is expected to range between $38 million to $40 million, excluding spending on build-to-suit drive-in development and capital outlays would be between $34 million to $36 million in FY 18. In addition, in FY 18 the free cash flow will be approximately between $60 million to $65 million. The company expects to repurchase approximately $160 million in shares across the fiscal year and an expected quarterly cash dividend of $0.16 per share.

Meanwhile, in the first quarter of FY 18, SONC had promoted the Carhop Classic for $2.99, featuring our full-sized cheeseburger and medium hand-made onion rings. The introduction of a sharper everyday value message has also improved value and quality scores from customers.