Drive-in hamburger chain Sonic Corp. (SONC: 9.88, 0, 0%) reported Wednesday an expected decline in same-store sales for the coming quarter of 12% to 14% due to bad weather and cutbacks in consumer spending.
Approximately one-third of Sonic stores are based in Texas and Oklahoma, where snow storms and severe rains were common during the first part of the year. Thanks to a drop in consumer spending, the company may also see sales tax collections down by double digits.
The company has implemented new advertising and promotional strategies and improved product quality in an effort to boost sales in the third and fourth quarter of 2010.
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