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Sonic Corp.'s board of directors has approved a three-for-two stock split that will be distributed in the form of a 50 percent stock dividend, the company announced. Sonic's stockholders of record at the close of business on May 10, 2004, will receive one additional share for every two shares of common stock held on that date.
The new shares will be distributed on May 21, 2004, and Sonic's stock will begin trading ex-dividend on May 24, 2004. The stock split -- the company's fifth since 1995 -- will increase the number of shares of common stock outstanding from approximately 39.7 million to approximately 59.6 million.
"We believe this stock split will place the market price of Sonic's common stock in a more attractive range for investors," said Clifford Hudson, Sonic's chairman and chief executive officer, in a statement. "By increasing the number of shares available for sale to the public, we also believe this action will help increase the liquidity of the company's common stock."
In announcing the stock split, Hudson noted that the company's decision to split its stock again reflected Sonic's ongoing strong performance as well as the company's positive outlook for future earnings growth. Recently, Sonic reported second quarter results for fiscal 2004, which included record revenues and earnings for the period driven by accelerating same-store sales, greater franchising income, and increased new drive-in openings by franchisees.