Back to top

Bear of the Day: Sonic (SONC)

Read MoreHide Full Article

Today’s Bear of the Day is in the Restaurant Industry. A fast food chain that’s seen earnings estimates tumble recently. You may have seen the commercials and like them, but when you look at what analysts have done to their estimates, you may not want to add this name to your portfolio. I’m talking about Sonic .

Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. As of August 31, 2017, the company operated 3,593 Sonic Drive-Ins in 45 states, of which 228 were owned and operated by the company and 3,365 were owned and operated by franchisees. The company also owns and leases 135 properties; and sublease 53 properties to franchisees and other parties.

The company is a Zacks Rank #4 (Sell) right now in an industry that ranks in the Bottom 40% of our Zacks Industry Rank. The reason for the unfavorable rank is the dip in analysts’ earnings estimates over the last sixty days. Analysts have dropped their numbers for both the current year and next year. The bearish activity has cut our Zacks Consensus Estimate from $1.53 to $1.47 for the current year. Next year’s number has dropped from $1.72 to $1.63.

Investors looking for other stocks within the same industry should investigate Zacks Rank #1 (Strong Buy) Wingstop (WING - Free Report) or Zacks Rank #2 (Buy) Denny’s (DENN - Free Report) .

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Wingstop Inc. (WING) - free report >>

Denny's Corporation (DENN) - free report >>

More from Zacks Bear of the Day

You May Like