Sonic Corp. (Nasdaq/NM:SONC) announced May 9 that its board of directors has expanded the company's current stock repurchase program by $10 million. With the additional authorization, Sonic has approximately $11 million available for repurchase of the company's common stock through calendar year 2000. Since the program's inception in March 1998, the company has expended $51 million for the repurchase of 2.0 million shares, including $9.2 million during the third quarter of fiscal 2000.
"Our prior purchases of our common stock have been accretive to earnings and we believe Sonic's stock at current market prices will continue to be so," Clifford Hudson, Sonic's chairman and CEO, said. He noted that, as originally announced, the repurchases may be made from time to time in the open market as deemed appropriate by the company and will depend on market conditions.
Sonic intends to finance the repurchase program from internal funds and with debt facilities. Any shares repurchased may be used for future acquisitions and other corporate purposes. The expansion of the program will not affect the company's current expansion plans.
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