“With sliver-like margins and not enough resources to sustain a prolonged closure, the future looks grim.”
S&P expects "very significant disruptions and sales deterioration" through the second quarter due to store closings and economic contraction.
The company has also closed 38 locations as it struggles with declining mall traffic and a shift away from casual dining.
The struggling restaurant chain said its strategic plan is a better option for long-term shareholder value than Vintage Capital's offer.
The company benefited from value deals and increased menu prices as it undergoes the largest construction project in its history.
Sonic is America's largest drive-in chain but has been facing intense pricing competition from bigger fast-food rivals.
The 3.3% increase in Q2 beat analysts' estimates as an increase in average check helped offset 1.8% fewer comparable restaurant transactions.
The fast-food giant benefited in Q1 from menu price increases that fueled higher check averages in the U.S.
“The fourth quarter was a solid ending to a year where Yum Brands met or exceeded each component of our full-year guidance,” CFO David Gibbs says.
Lance Tucker is leaving Papa John's after seven years as its CFO and will replace Jerry Rebel at Jack in the Box.
After pulling off an impressive turnaround at Arby's, Roark Capital faces a similar challenge at the chicken-wing chain.
The fast-food chain's stock falls 3% amid concerns it is losing ground to its rivals in the burger wars.
