Drive-thru fastfood chain Sonic Corp has revealed that this year it will open a record number of new outlets, more than its sector rival McDonalds. Despite the delays in construction of the first of the new outlets, caused by bad weather conditions, Sonic still plans to create an extra 190-200 stores by the end of this year. Meanwhile, McDonald’s will open only 175 new units across the US.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Based in Oklahoma, Sonic currently operates 2250 outlets across 27 states, but the company chairman and CEO Clifford Hudson commented: “California will be a market for us in the next several years.” Sonic has also expressed its intention to focus on the small towns and suburban markets rather than the city centres.
Revenue for the first quarter, ending 28 February, was up 8.2% year on year to US$63.2m. Earnings amounted to US$5.5m, up from US$5.2m during the same period in 1999. Profit margins for the whole year may be affected by the higher costs for beef and some dairy products. Hudson is confident however that over the course of the year the company will achieve its same-store sales growth target of between 2-4%.
