In a bid to improve brand recognition and cater to the
changing consumer demand, restaurateurs are introducing
differentiated value propositions. In keeping with this trend,
the biggest chain of drive-in restaurants in the U.S.,
) is focusing on menu innovation as one of its sales-driving
The restaurateur recently modified its popular Master Blast
dessert offerings by adding new flavors. Guests can now taste
Sonic's Real Ice Cream in six new flavor options - Triple
Chocolate, Turtle Pecan, Pineapple Upside Down, Banana Split,
Chocolate Chip Cookie Dough and Caramel Brownie.
Among these flavors, Banana Split Master Blast and Pineapple
Upside Down Master Blast are especially crafted for fruit lovers.
Moreover, those who crave chocolates will have two Master Blast
options - Triple Chocolate Master Blast or Turtle Pecan - to
choose from. The new Master Blast flavors are expected to gain
popularity within consumers very soon due to their delicious
Apart from menu innovation, the company is also focusing on
unit expansion to boost its business. Sonic has recently signed a
franchise development deal to extend its association with a
long-standing franchisee partner, Fran DeSimone. Per the
agreement, the company will set up six drive-ins at Syracuse and
Watertown in New York by 2018.
With the resurgence of consumer confidence, management
accelerated its unit openings. In first-quarter fiscal 2014, the
company unveiled six franchisees outlets, bringing the total to
3,517 restaurants. It plans to open 40 to 50 franchise drive-ins
in fiscal 2014, slightly higher than fiscal 2013.
Other Stocks to Consider
Sonic currently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the restaurant industry include
Fiesta Restaurant Group, Inc.
Brinker International, Inc.
Buffalo Wild Wings Inc.
). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy),
Brinker and Buffalo Wild Wings have a Zacks Rank #2 (Buy).
BUFFALO WLD WNG (BWLD): Free Stock Analysis
BRINKER INTL (EAT): Free Stock Analysis
FIESTA RESTRNT (FRGI): Free Stock Analysis
SONIC CORP (SONC): Free Stock Analysis Report
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