Sonic's (NASDAQ:SONC) Double-Digit EPS Growth Days Over?

According to Barclays (NYSE:BCS), they see the comp and unit growth model of Sonic (NASDAQ:SONC) structurally challenged, and think it'll be hard to assume double-digit EPS growth going forward.

Barclays says, "1QF11 EPS was in-line with the Street (ex a tax benefit), with comps improving from 4QF10. Such improvement continued through December, though compares eased meaningfully, making direct comparison difficult. F11 guidance is unchanged, though still lacking specific thoughts on comp and EPS growth. Longer-term, we believe Sonic's comp and unit growth model is structurally challenged, with management acknowledging inability to return to historic sales growth (driven by comp & unit) and peak restaurant margins. We remain cautious assuming a sustainable return to double-digit EPS growth.

Barclays maintains an "Equalweight" on Sonic, which closed Wednesday at $11.31, gaining $1.21, or 11.98 percent. Barclays has a price target of $8 on them.