Sonic 2002 Annual Report Download - page 16

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Sonic 02 14
Management’s Discussion and Analysis
Year ended August 31,
2002 2001 2000
($ in thousands)
Income Statement Data:
Revenues:
Company-owned restaurant sales 82.7% 80.9% 80.3%
Franchised restaurants:
Franchise royalties 15.3 16.4 17.0
Franchise fees 1.0 1.3 1.3
Other 1.0 1.4 1.4
100.0% 100.0% 100.0%
Costs and expenses:
Company-owned restaurants (1) 73.2% 73.0% 72.7%
Selling, general and administrative 8.4 9.3 10.0
Depreciation and amortization 6.5 7.2 7.2
Minority interest in earnings of restaurants (1) 4.5 4.7 4.5
Provision for impairment of long-lived assets 0.3 0.2 0.3
Income from operations 20.6 20.4 20.4
Net interest expense 1.6 1.7 1.9
Net income 11.9 11.8 11.7
Restaurant Operating Data:
Company-owned restaurants (2) :
Core markets 350 300 234
Developing markets 102 93 78
All markets 452 393 312
Franchised restaurants (2) 2,081 1,966 1,863
Total 2,533 2,359 2,175
System-wide sales $ 2,205,269 $ 1,971,477 $ 1,778,828
Percentage increase (3) 11.9% 10.8% 12.0%
Average sales per restaurant:
Company-owned $ 791 $ 772 $ 747
Franchise 935 899 872
System-wide 906 874 853
Change in comparable restaurant sales (4):
Company-owned restaurants:
Core markets(5) 2.6% 2.4% 2.9%
Developing markets (5) -2.1 -0.5 0.6
All markets 1.7 1.8 2.4
Franchise 3.2 1.8 3.2
System-wide 3.0 1.8 3.0
(1) As a percentage of company-owned restaurant sales.
(2) Number of restaurants open at end of year.
(3) Represents percentage increase from the comparable period in the prior year.
(4) Represents percentage change for restaurants open in both the reported and prior years.
(5) The calculation of the percentage change of company-owned restaurants by core and developing markets is based on a television market
determination rather than a state determination.