Sonic blast

Sonic’s quarterly report said its net earnings were up, compared to the same time a year ago — and investors responded positively.

Sonic reported this week that its sales trend improved during its most recent fiscal quarter, and investors responded positively.

In its quarterly report released late Thursday, the company said its per-share net income increased 42 percent, despite another decline in same-store sales owned both by franchisees and by the company itself.

It also said it opened 15 new drive-ins during the three-month period ending May 31, and that the company repurchased 1.2 million outstanding shares.

“Our third-quarter results reflect ... improvement in underlying sales and store profit versus the first half of the fiscal year, driven by a more balanced promotional calendar including a reinvigorated Sonic Summer Nights promotion featuring our Real Ice Cream Slush,” said Cliff Hudson, Sonic’s CEO.

Hudson said the company also continued to build its development pipeline during the quarter, released a redesigned mobile app, and he highlighted its ongoing program to buy up more shares of its stock.

“We have made significant strides in transitioning to a more highly franchised business model and look forward to driving increased free cash flow over the next several years.”

The report said the company posted a net income for the quarter of about $18.75 million, or 44 cents per share, compared to a net income of about $15.35 million (31 cents per share) for the same time a year ago.

As for its outlook for its 2017 fiscal year, Sonic said in the report that it still expects its adjusted per-share earnings to be less than they were the previous year.

Still, it also said it expects to see a growth in its royalty revenue as 65 to 75 new franchise drive-in businesses open and a free cash flow of at least $55 million.

The company said it also expects to issue quarterly cash dividends of 14 cents per share.

On Friday, the Nasdaq-traded stock closed at $28.01, up about 1.85 percent for the day from its opening at $27.50.