Mad Money

Cramer: Now, this is how you Sonic!


Up 5.3 percent, Cramer said same-store sales at Sonic are the envy of the industry.

Burger King was up 2 percent, Wendy's was up 1.3 percent and McDonald's was negative," Cramer noted. "Nobody else came close."

"We've got a good head of steam," admitted Sonic CEO Clifford Hudson on "Mad Money."

With numbers like that, "Even after languishing for years in the wake of the downturn, it seems to me as if Sonic has found its footing," Cramer noted.

But it's not just sales that have captured Cramer's attention. He thinks earnings are encouraging, broadly.

, for the period ended May 30, Oklahoma City-based Sonic reported a profit of $16.8 million, or 30 cents a share, up from $14.8 million, or 26 cents a share, a year earlier. Revenue increased 3.8 percent to $152.2 million.

Analysts polled by Thomson Reuters expected per-share profit of 29 cents and revenue of $150 million.

Sonic also affirmed its fiscal-year outlook.

"There's winners and losers in the restaurant business. This one is a winner," Cramer said. And looking at future potential, Cramer thinks it could be a winner for quite some time to come.

A Sonic Corp. drive-in restaurant sign in Normal, Illinois
Daniel Acker | Bloomberg | Getty Images

"Even though the company has more than 3,500 locations, most of them are concentrated in the south and southeast, especially Texas, so Sonic has a ton of room to expand," Cramer said. "And because they rely heaving on franchising, with a system that's 89 percent franchised, it's easy to grow without spending a lot of money."

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Turning attention to share price, the stock has declined in recent days due to concerns about rising commodity costs. However, Hudson assured Cramer that "Sonic continues to look into the menu to find ways to raise prices, especially on proprietary items. And as we grow sales we can expand margins," (presumably through synergies.)

"The stock is down more than half a buck since it reported," Cramer noted. Considering the strength in sales, "Could this be a terrific entry point?"

Let's just say Cramer likes to give investors food for thought.

Call Cramer: 1-800-743-CNBC

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