Sonic 2003 Annual Report Download - page 14

These unique characteristics – carhop service, a distinctive, made-when-you-order
menu, and the incomparable drive-in setting – are our brand treasures. Positioning us as
far from routine as you can get in QSR, these distinctions have set us apart for 50 years
and have helped create the most differentiated brand in the industry. They remain as
relevant today as they were to our customers in 1953.
At this point, you may be thinking: the first 50 years were great, but what do you do
for an encore? Simply put, the answer involves a continual process of refining the multi-
layered strategies that have been driving our growth for several years.
Of course, one of the basic levers that will shape our future is the continuation of
our accelerated drive-in
development program. Led
by franchisees, we have
opened more than 175 new
drive-ins in each of the past
six years, including a record
194 in fiscal 2003! In the
coming year, we have a
goal of adding 200 new
locations, about 170 of
which will be opened by
franchisees. Moreover, we
have a solid development
pipeline to support these
ambitions, and only eight
of our 30 states have more
than 100 locations,
highlighting the ample
opportunities we have to
extend the Sonic brand going
forward and continue to
build our presence in both
existing and new markets.
These plans for growth
affect our operations – and
our future – in several ways. First, they link directly with our strategies to increase average
unit volume and stimulate same-store sales growth, ultimately driving profits higher and
strengthening our brand awareness. To help us achieve these goals, we have steadily
increased our media expenditures in recent years, reaching approximately $100 million in
fiscal 2003. Next year, we plan to increase media expenditures even further to over $110
Lucky Number 13
In 1959, a group of 13 enterprising women defied superstition
and formed the Lucky 13 Investment Club, and lucky they have
been. Today, it is Oklahoma City’s oldest investment club,
having grown through the years to its maximum membership of
20 and providing a profitable, enlightening and entertaining
pastime for its members across up-and-down markets. Ask the
members why this is so and they will point out that their
“legendary” stock-picking skills center on buying shares in
companies that relate to their everyday lives. As one described
the club’s investment in Sonic, “A profitable Oklahoma-based
company that sells great food – what more could we ask?”
More Cherry Limeades, perhaps?
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