Sterne Agee Neutral On Sonic Following Earnings

Sterne Agee has a Neutral rating on shares of Sonic Corp. SONC after it reported earnings yesterday. In a note to clients, Sterne Agee writes, "We are impressed by SONC's improvement in margins during the quarter which drove a $0.03 earnings beat. However, same-store sales (SSS) remain volatile and the Company noted a deceleration in comps late in the quarter that has carried into June. While we are encouraged that SONC is now producing positive SSS, we remain on the sidelines until we can get greater visibility on the sustainability of the sales improvement. Accordingly, we are maintaining our Neutral rating on SONC." Shares of SONC are down 2 cents in pre-market trading to $10.50, a loss of 0.19%.