SONIC’S QUARTERLY EARNINGS PER SHARE JUMP 33%

Same-Store Sales Increase 5.3%

OKLAHOMA CITY (January 5, 2016) – Sonic Corp. (NASDAQ: SONC), the nation’s largest chain of drive-in restaurants, today announced results for its first fiscal quarter ended November 30, 2015.

Key highlights of the company’s first quarter of fiscal year 2016 included:

"Our solid business momentum continues with another quarter of robust same-store sales,” said Cliff Hudson, Sonic Corp. CEO.    “Improvements in core menu items, combined with limited-time-offer promotions, drove healthy same-store sales growth of 5.3% for the system during the quarter, building upon 8.5% same-store sales growth in the prior-year quarter. We saw particularly strong top line contribution from two premium chicken products and targeted value offerings.  The combination of sales leverage, a favorable cost environment and technology-driven cost savings generated another quarter of meaningful incremental profits at the company drive-in level.

"With more than five consecutive years of both positive same-store sales growth and double-digit adjusted earnings per share growth, we continue to focus on our multi-layered growth strategy, which is comprised of initiatives to drive same-store sales growth, improve margins, increase royalty revenues, accelerate new drive-in development and deploy free cash flow1.   In addition to strong sales and profit growth, we are especially pleased to have repurchased more than 1.8 million shares during the first fiscal quarter at an average price of $25.73, representing 3.4% of our outstanding shares since fiscal 2015." Hudson continued, "Looking forward, we believe our technology initiatives will be key contributors to driving sales, profits and new unit development.”

Same-Store Sales

For the first fiscal quarter ended November 30, 2015, system same-store sales increased 5.3%, which was comprised of a 5.4% same-store sales increase at franchise drive-ins and an increase of 4.4% at company drive-ins.

Financial Overview 

For the first fiscal quarter of 2016, the company’s net income increased to $12.5 million or $0.24 per diluted share compared with net income of $10.1 million or $0.18 per diluted share in the same period in the prior year.

Fiscal Year 2016 Outlook

While the macroeconomic environment may impact results, the company continues to expect its initiatives to drive 16% to 20% earnings per share growth for fiscal 2016.  The outlook for fiscal 2016 anticipates the following elements:  

Earnings Conference Call

The company will host a conference call to review financial results at 5:00 PM ET this evening.  The conference call can be accessed live over the phone by dialing  (888) 312-3048 or (719) 457-2648 for international callers.  A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 3322264.  The replay will be available until Tuesday, January 12, 2016.  An online replay of the conference call will be available approximately two hours after the conclusion of the live broadcast. A link to this event may be found on the company's investor relations website at http://ir.sonicdrivein.com/.

About Sonic

SONIC, America's Drive-In is the nation's largest drive-in restaurant chain serving more than 3 million customers every day. Nearly 90 percent of SONIC's 3,500 drive-in locations are owned and operated by local business men and women. Over the past 60 years, SONIC has delighted guests with signature menu items, more than 1.3 million drink combinations and friendly service by iconic Carhops. To learn more about Sonic Corp. (NASDAQ/NM: SONC), please visit sonicdrivein.com or follow us on Facebook and Twitter.

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements reflect management’s expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those expressed in, or underlying, these forward-looking statements are detailed in the company’s annual and quarterly report filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.

The tables that follow provide information regarding the number of company drive-ins, franchise drive-ins and system drive-ins in operation as of the end of the periods indicated.  In addition, these tables provide information regarding franchise sales, system growth in sales, and both franchise and system average drive-in sales and change in same-store sales.  System information includes both company and franchise drive-in information, which we believe is useful in analyzing the growth of our brand.  While we do not record franchise drive-in sales as revenues, we believe this information is important in understanding our financial performance since we calculate and record franchise royalties based on a percentage of franchise sales.  This information also is indicative of the financial health of our franchisees.

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Note:  Change in same-store sales based on restaurants open for a minimum of 15 months.