Here again, you've had a management change. 

I think Sonic always had a great operational leader in Jeff Rachor.  But they lacked a return on capital focus.  David Cosper (CFO and recently promoted Vice Chairman) brought such a return on investment focus to the organization.  And Voilla, a 40%+ increase in the stock over the last 12-months. 

Now the only question becomes can Scott Smith and his two divisional Chiefs carry on the company's tradition of operational excellence with Jeff Rachor now gone? 

I am going to keep betting they can.  And with an earnings yield of 8.6% and 1.6% dividend yield, I think the risk-reward is pretty attractive. 

So why did ...

To view the entire article:

• Click here to subscribe to everything for $400.00.

• OR click here just to purchase access to this article for $5.00.

Related Companies: Sonic Automotive