Exhibit 99.1

Sonic Automotive, Inc. Reports Sequential Growth in Second Quarter Earnings

Continued Profit Improvement Driven by Rising Used Vehicle Volume, Parts and Service Margin Growth and

Ongoing Cost Reductions

CHARLOTTE, N.C. – July 28, 2009Sonic Automotive, Inc. (NYSE: SAH), the nation’s third-largest automotive retailer, today reported that 2009 second quarter adjusted earnings from continuing operations were $9.0 million, or $0.19 per diluted share. These adjusted results include charges related to the Company’s May 7, 2009 debt restructuring and impairment charges related to the General Motors’ bankruptcy as shown in the attached reconciliation table. The Company is still finalizing certain aspects of the accounting for its May 7, 2009 debt modification which it does not currently believe will have a material impact on reported results.

Profit Growth – Sequential profits up substantially

B. Scott Smith, the Company’s President, said, “Our results this quarter continue to demonstrate the effectiveness of the operational strategies we have been steadily implementing. Although industry new vehicle sales volume was at approximately the same level as first quarter, our sequential profits, after eliminating the restructuring items, were up substantially.”

Mr. Smith noted that the improvement was accomplished despite higher non-cash interest charges as a result of the Company’s recent debt restructuring. “While our SG&A expenses continue to decline both in absolute dollars and as a percentage of gross profit, our performance reflects much more than cost reductions. Our regional and dealership teams are actively focused on capturing incremental revenue despite a challenging economic environment.”

“The improving trends we’re seeing in almost every segment of our business underscore the fact that our business is not wholly dependent on new vehicle sales volume. All these factors point to the future profit potential in our business model once the new vehicle sales environment rebounds.”

New Vehicles – Local market share continues to outperform the industry

Commenting on the Company’s new car sales, Mr. Smith noted, “We have been consistently implementing our sales strategy playbook, which includes comprehensive changes to advertising strategies, customer interaction and eCommerce initiatives. For the second consecutive quarter, our dealerships are taking market share and setting new vehicle share records in each of their local markets. This is being accomplished at the same time we are making significant reductions in our advertising spend. Our best practices are resulting in a more efficient ad spend and improved sales penetration.”

Used Vehicles – Dealerships continue to set used vehicle volume records

Overall used vehicle unit volume for the second quarter of 2009 was up 13% compared to the second quarter of 2008. Sequentially, used vehicle unit volume was up 20%. Jeff Dyke, the Company’s EVP of Operations, stated, “Our dealerships continue to set used vehicle volume records. We saw similar results in the first quarter compared to the industry.”

“Our increase in used car sales resulted from processes that we began implementing at our dealerships over two years ago. This is a long-term strategy that involves the patient implementation of both technology and technique. It is satisfying to see these improved results in a challenging economy. Many of our stores have seen their used car volume double since they began implementing the various phases of the used vehicle playbook. We believe there are further improvements available to us as we continue to refine it.”


Parts and Service – A developing story as margins begin to improve

Sonic’s same store parts and service revenue for the second quarter of 2009 was down approximately 3.3% from the same period last year, reflecting continued pressure from consumer spending pullbacks. That notwithstanding, the gross margin in Sonic’s parts and service business was up 50 basis points compared to the second quarter of 2008 and up 110 basis points compared to the first quarter of 2009.

Mr. Dyke stated, “The implementation of our operational playbook for parts and service is still in its infancy, but we are already seeing some of the results. We have added resources in key areas of this business and have introduced our dealerships to the first phase of our long-term strategy in this very critical segment of our business. Very similar to our used car strategy, we are able to see improvement almost immediately when these playbooks are introduced. Based on the improvement in the margin and the other early results, we are optimistic that this piece of our strategic playbook will be just as successful as those that are further along in their implementation.”

Presentation materials for the Company’s July 28, 2009 earnings conference call at 11:00 A.M. (Eastern) can be accessed on the Company’s website at www.sonicautomotive.com by clicking on the “For Investors” tab and choosing “Webcasts & Presentations” on the right side of the monitor.

To access the live broadcast of the call over the Internet go to: www.ccbn.com or www.sonicautomotive.com

A live audio of the call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling: 800-642-1687, International callers dial (706) 645-9291 Conference ID: 20547686.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is the nation’s third-largest automotive retailer, operating 154 franchises. Sonic can be reached on the web at www.sonicautomotive.com.

Included herein are forward-looking statements, including statements with respect to implementation of operating initiatives and future profit potential. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company’s annual report on Form 8-K filed May 28, 2009. The Company does not undertake any obligation to update forward-looking information.


Sonic Automotive, Inc.

Results of Operations (Unaudited)

(in thousands, except per share, unit data and percentage amounts)

 

     Second Quarter Ended     Six Months Ended  
     6/30/2009     6/30/2008     6/30/2009     6/30/2008  

Revenues

        

New retail vehicles

   $ 644,502      $ 940,704      $ 1,228,907      $ 1,811,642   

Fleet vehicles

     61,669        118,782        115,372        224,773   

Total new vehicles

     706,171        1,059,486        1,344,279        2,036,415   

Used vehicles

     361,452        346,650        668,944        686,748   

Wholesale vehicles

     30,685        74,835        64,257        151,383   
                                

Total vehicles

     1,098,308        1,480,971        2,077,480        2,874,546   

Parts, service and collision repair

     257,751        266,484        512,631        531,061   

Finance, insurance and other

     36,552        49,145        69,361        96,096   
                                

Total revenues

     1,392,611        1,796,600        2,659,472        3,501,703   

Total gross profit

     241,834        282,358        472,258        556,988   

SG&A expenses

     (192,753     (219,622     (385,139     (436,386

Impairment charges

     (3,793     (116     (3,825     (333

Depreciation and amortization

     (8,806     (8,270     (16,444     (15,277
                                

Operating income

     36,482        54,350        66,850        104,992   

Interest expense, floor plan

     (5,156     (10,535     (10,045     (22,603

Non-cash interest expense, convertible debt

     (3,643     (2,656     (6,262     (5,294

Interest expense, other, net

     (22,122     (13,804     (38,190     (24,944

Other income, net

     20        30        63        94   
                                

Income from continuing operations before taxes

     5,581        27,385        12,416        52,245   

Income tax provision

     (2,512     (10,954     (5,587     (20,898
                                

Income from continuing operations

     3,069        16,431        6,829        31,347   

Discontinued operations:

        

Loss from operations and the sale of discontinued franchises

     (4,168     (9,796     (6,833     (12,702

Income tax (provision) benefit

     1,125        2,582        1,708        3,197   
                                

Loss from discontinued operations

     (3,043     (7,214     (5,125     (9,505
                                

Net income

   $ 26      $ 9,217      $ 1,704      $ 21,842   
                                

Basic:

        

Weighted average common shares outstanding

     40,968        40,432        40,536        40,603   

Earnings per share from continuing operations

     $0.07        $0.40        $0.17        $0.76   

Loss per share from discontinued operations

     ($0.07     ($0.18     ($0.13     ($0.23
                                

Earnings per share

     $0.00        $0.22        $0.04        $0.53   
                                

Diluted:

        

Weighted average common shares outstanding

     41,604        40,645        40,974        40,857   

Earnings per share from continuing operations

     $0.07        $0.40        $0.17        $0.75   

Loss per share from discontinued operations

     ($0.07     ($0.18     ($0.13     ($0.23
                                

Earnings per share

     $0.00        $0.22        $0.04        $0.52   
                                

Gross Margin Data (Continuing Operations):

        

Retail new vehicles

     7.1     7.4     7.1     7.4

Fleet vehicles

     3.6     1.4     4.0     1.8

Total new vehicles

     6.8     6.8     6.8     6.8

Used vehicles retail

     8.0     8.9     8.6     9.1

Total vehicles retail

     7.2     7.3     7.4     7.3

Wholesale vehicles

     (4.3 %)      (2.3 %)      (2.3 %)      (1.8 %) 

Parts, service and collision repair

     50.3     49.8     49.8     49.6

Finance, insurance and other

     100.0     100.0     100.0     100.0

Overall gross margin

     17.4     15.7     17.8     15.9

SG&A Expenses (Continuing Operations):

        

Personnel

   $ 110,765      $ 125,322      $ 219,393      $ 248,669   

Advertising

     10,446        15,226        20,599        29,588   

Facility rent

     22,305        19,176        44,664        41,479   

Other

     49,237        59,898        100,483        116,650   
                                

Total

   $ 192,753      $ 219,622      $ 385,139      $ 436,386   
                                

SG&A Expenses as % of Gross Profit

        

Personnel

     45.8     44.4     46.5     44.6

Advertising

     4.3     5.4     4.4     5.3

Facility rent

     9.2     6.8     9.5     7.4

Other

     20.4     21.2     21.3     20.9
                                

Total

     79.7     77.8     81.6     78.3
                                

Operating Margin %

     2.6     3.0     2.5     3.0


     Second Quarter Ended    Six Months Ended
Unit Data (Continuing Operations):    6/30/2009     6/30/2008    6/30/2009     6/30/2008

New retail units

     19,306        28,747      36,693        54,380

Fleet units

     2,590        4,501      4,829        8,800

Used units

     19,449        17,247      35,702        34,173

Wholesale units

     4,895        9,554      10,802        18,923

Average price per unit:

         

New retail vehicles

   $ 33,384      $ 32,724    $ 33,492      $ 33,314

Fleet vehicles

     23,810        26,390      23,891        25,542

Used vehicles

     18,585        20,099      18,737        20,096

Wholesale vehicles

     6,269        7,833      5,949        8,000

Other Data:

         

Same store revenue percentage changes:

         

New retail

     (31.5% )         (32.3% )   

Fleet

     (48.1%        (48.7% )   

Total New Vehicles

     (33.3% )         (34.1% )   

Used

     4.3%           (2.7% )   

Parts, service and collision repair

     (3.2% )         (3.7% )   

Finance, insurance and other

     (25.3% )         (27.6% )   

Total

     (22.5% )         (24.2% )   

Balance Sheet Data:

         
     6/30/2009     12/31/2008 (1)           

ASSETS

         

Current Assets:

         

Cash and cash equivalents

   $ 5,163      $ 6,971     

Receivables, net

     185,473        247,025     

Inventories

     790,101        916,837     

Assets held for sale

     203,577        406,576     

Other current assets

     22,037        16,822     
                   

Total current assets

     1,206,351        1,594,231     

Property and Equipment, Net

     379,033        369,892     

Goodwill, Net

     402,999        327,007     

Other Intangibles, Net

     80,100        82,328     

Other Assets

     31,462        32,087     
                   

TOTAL ASSETS

   $ 2,099,945      $ 2,405,545     
                   

LIABILITIES AND STOCKHOLDERS’ EQUITY

         

Current Liabilities:

         

Floor plan notes payable

   $ 754,752      $ 921,023     

Other current liabilities

     213,634        277,938     

Liabilities associated with assets held for sale

     79,517        199,482     

Current maturities of long-term debt

     87,420        738,447     
                   

Total current liabilities

     1,135,323        2,136,890     

LONG-TERM DEBT

     644,260        —       

OTHER LONG-TERM LIABILITIES

     99,823        71,132     

STOCKHOLDERS’ EQUITY

     220,539        197,523     
                   

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 2,099,945      $ 2,405,545     
                   

 

(1) Restated for the adoption effects of FSP APB 14-1.


Reconciliation of Non-GAAP Information

(amounts in millions, except per share data)

 

     Q2 2009     Diluted EPS  

Income From Continuing Operations - Adjusted

   $ 9.0      $ 0.19   

Debt Restructuring and Impairment Charges

     (5.9     (0.12
                

Income From Continuing Operations - GAAP

   $ 3.1      $ 0.07