Sonic 2003 Annual Report Download - page 5

With the conclusion of this, our 50th year, the Sonic concept and the innovations
we have helped pioneer continue to be as strong and relevant as they were in 1953.
And despite declining consumer confidence and increased economic uncertainty
during the past year, we rose to meet the unusual challenges of fiscal 2003, posting
record revenues and profits. Once again, our proven set of multi-layered strategies,
including the highest ever number of new drive-in openings in a single year, increased
media support for our brand and greater leverage of our corporate-level expenses, helped
us sustain the solid momentum that has characterized our operations for many years.
With total revenues for the year up 12% to $447 million, earnings per share
advancing 14% to $1.29, and return on equity topping 20% for the fourth consecutive
year, we extended an enviable track record for consistent top- and bottom-line
growth. Equally important, our strong cash flow from operations – more than
sufficient to support our new drive-in development and select franchise acquisitions –
enabled us to expand once more our stock repurchase program during fiscal 2003.
The past year also provided a welcome historical perspective on the success of the
Sonic brand. Back in 1953, Troy Smith, our founder, could hardly have imagined the
kind of success story Sonic would hold for him and his associates. Because of the
solid foundation he provided, together with the ongoing contributions and efforts of
Sonic franchisees and corporate staff from then until now, we have prospered beyond
Troy’s most ambitious expectations. His legacy is now the biggest chain of drive-in
restaurants in America and one of the largest brands in the Quick–Service Restaurant
segment, with annual system-wide sales approaching $2.4 billion and more than
2,700 locations from coast to coast.
Yes, at 50 years young, we have much to remember and a lot to celebrate. Of
course, the mere passage of time itself is hardly the point; it’s more important to
understand how this time was spent. So, even as we enjoy this moment and recognize
the progress of our first 50 years, we are privileged to be able to look back over five
decades and see more than just one company’s success.
This longer view reveals a mosaic of hundreds, thousands, literally countless
stories of success for those involved with the Sonic brand. It is an account of
opportunities provided and opportunities realized for a variety of our stakeholders.
The first and foremost among these, as with any business, is our customers. They have
discovered at Sonic a truly distinctive concept featuring a unique menu, made when
you order, and served with the uncommon attention that only curbside carhop service
can offer – all our brand treasures that combine to create the most differentiated
dining experience in the QSR category. Sonic also has had a profound influence on
the lives of many others, from franchisees who are so passionate about our brand
that they often devote their entire careers to the Sonic concept, to the partners who
To Our Stockholders
To Our Stockholders
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