NEW YORK (AP) -- Shares of Sonic Corp. dropped Friday after the drive-in restaurant chain said its same-store sales deteriorated in March and April.
Shares dropped 76 cents, or 7.7 percent, to $9.11 in midday trading.
After the market closed Thursday, Sonic said its sales at stores open at least a year were worse in March and April than in the first two fiscal quarters of fiscal 2009. Same-store sales fell 3.6 percent in both quarters.
The company's third quarter ends at the end of May.
Same-store sales are a key measure of restaurant performance, because they measure growth at existing stores rather than from newly opened ones.
Morgan Keegan analyst Robert Derrington said in a note to investors that third quarter same-store sales were likely down about 4 percent. He said he had expected flat same-store sales due, partly, to aggressive promotions.
Derrington has an "Outperform" rating on the stock.
Credit Suisse analyst Keith Siegner said in a note Thursday night that the company's sales release "largely confirmed our fears" about slowing sales in the third quarter.
Siegner said the company has "struggled to convey a clear message to the consumer" and their efforts to bring in customers with a value menu and more premium products haven't had much "real success over the past year."