Sonic Announces 27% Increase to Dividend Program in Fiscal 2017
August 04 2016 - 4:05PM
Business Wire
Sonic Corp. (NASDAQ:SONC), the nation’s largest chain of
drive-in restaurants, today announced that its Board of Directors
has approved the continuation of the Company's quarterly cash
dividend program. Beginning in the first fiscal quarter of 2017,
the Company expects to declare a quarterly dividend of $0.14 per
share of common stock, which represents an increase of 27% from the
current quarterly dividend of $0.11 per share.
"Our multi-layered growth strategy continues to generate
significant cash to drive shareholder value," said Cliff Hudson,
Sonic Corp. CEO. "Over the past three fiscal years, we have
returned in excess of $370 million to shareholders through the
combination of dividend payments and the repurchase of 13 million
shares of our common stock, or approximately 23% of our outstanding
shares. We believe the dividend program complements our repurchase
program, providing an additional lever to deliver value to
shareholders. We remain confident in the strength of the brand and
in the ability of our business model to continue to drive strong
future returns."
The Company completed its fiscal 2016 share repurchase program
in July, spending $126 million during the fiscal year to repurchase
more than 4.4 million shares of its common stock. As previously
announced, the Board of Directors has authorized an additional $155
million repurchase program through the end of fiscal 2017. Payment
of a dividend of $0.11 per share is set for August 19, 2016 to
shareholders of record as of the close of business on August 10,
2016.
Future declaration of quarterly dividends and the establishment
of future record and payment dates are subject to the final
determination of the company's Board of Directors.
About Sonic
SONIC, America's Drive-In is the nation's largest drive-in
restaurant chain serving more than 3 million customers every day.
Nearly 90 percent of SONIC's 3,500 drive-in locations are owned and
operated by local business men and women. Over more than 60 years,
SONIC has delighted guests with signature menu items, more than 1.3
million drink combinations and friendly service by iconic Carhops.
Since the 2009 launch of SONIC's Limeades for Learning
philanthropic campaign in partnership with DonorsChoose.org, SONIC
has donated more than $6 million to public school teachers
nationwide to fund essential learning materials and innovative
teaching resources to inspire creativity and learning in today's
youth. To learn more about Sonic Corp. (NASDAQ/NM: SONC), please
visit sonicdrivein.com and please visit or follow us on Facebook
and Twitter. To learn more about SONIC's Limeades for Learning
initiative, please visit Limeadesforlearning.com.
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements reflect management’s expectations regarding future
events and operating performance and speak only as of the date
hereof. These forward-looking statements involve a number of risks
and uncertainties. Factors that could cause actual results to
differ materially from those expressed in, or underlying, these
forward-looking statements are detailed in the company’s annual and
quarterly report filings with the Securities and Exchange
Commission. The company undertakes no obligation to publicly
release revisions to these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unforeseen events, except as required to be reported
under the rules and regulations of the Securities and Exchange
Commission.
SONC-F
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version on businesswire.com: http://www.businesswire.com/news/home/20160804006264/en/
Sonic Corp.Corey HorschVice President, Investor Relationsand
Treasurer(405) 225-4800
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