Portfolio Manager Robert Klintworth of Chase Investment Counsel Corporation says his firm has added Sonic Corporation (SONC) as the company is gaining market share and posting good same-store sales every quarter.
“As you’ve seen McDonald’s lose market share, you have seen companies like Sonic picking up market share,” Klintworth says. “They are starting to roll out technology, such as having digital menu boards that are interactive, and they are opening new locations. The company has also generated good free cash flow, which is important to them.”
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Klintwoth says Sonic’s success is due to management’s plan that they’ve stuck to over the years, which has resulted in continuous strong earnings.
“The Founder had a saying that he believed that their customers are worth a mint, and so they give a mint to all their customers. They really focus on what appeals to those customers and cater to them,” Klintworth says.
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