Sterne Agee Maintains Neutral Rating On SONC

Sterne Agee has reiterated Sonic Corporation's SONC Neutral Rating. Sterne Agee writes, "We are encouraged that SONC's same-stores sales (SSS) are showing sequential improvement as weather has improved and we believe that the Company's new line of specialty hot dogs is performing well. However, commodity costs (beef and produce) are presenting near-term headwinds and we are tweaking our FY11 estimate down slightly. We are maintaining our Neutral rating on SONC at this time." Sonic is currently trading at $9.25.