Sonic Corp., the nation’s largest chain of drive-in restaurants, today announced that its Board of Directors authorized a stock repurchase program for up to $30 million worth of common stock through August 31, 2012. Share repurchases may be made from time-to-time in the open market or in negotiated transactions depending on share price, market conditions and other factors.
“Our franchise business model is strong, and with our long-term financing plans in place we expect to generate approximately $35 million to $40 million in free cash flow1 in fiscal 2012. We believe a share repurchase program represents a solid investment and a good means for deploying our excess cash,” said Clifford Hudson, Sonic’s Chairman and Chief Executive Officer.
Sonic, America’s Drive-In, originally started as a hamburger and root beer stand in 1953 in Shawnee, Oklahoma called Top Hat Drive-In, and then changed its name to Sonic in 1959. The first drive-in to adopt the Sonic name is still serving customers in Stillwater, Oklahoma. Sonic has more than 3,500 drive-ins coast to coast, where approximately three million customers eat every day.