Sonic 2003 Annual Report Download - page 21

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p.19
Management’s Discussion and Analysis
Year ended August 31,
Percentage Results of Operations and Restaurant Data 2003 2002 2001
($ in thousands)
Income Statement Data:
Revenues:
Company-owned restaurant sales 83.2 % 82.7 % 80.9 %
Franchised restaurants:
Franchise royalties 14.9 15.3 16.4
Franchise fees 1.0 1.0 1.3
Other 0.9 1.0 1.4
100.0 % 100.0 % 100.0 %
Costs and expenses:
Company-owned restaurants (1) 74.7 % 73.2 % 73.0 %
Selling, general and administrative 7.9 8.4 9.3
Depreciation and amortization 6.5 6.5 7.2
Minority interest in earnings of restaurants (1) 3.9 4.5 4.7
Provision for impairment of long-lived assets 0.2 0.3 0.2
Income from operations 20.0 20.6 20.4
Net interest expense 1.4 1.6 1.7
Net income 11.7 11.9 11.8
Restaurant Operating Data:
Restaurant count (2):
Company-owned restaurants 497 452 393
Franchised restaurants 2,209 2,081 1,966
Total restaurants 2,706 2,533 2,359
System-wide restaurants (3):
Core markets 1,977 1,888 1,801
Developing markets 729 645 558
All markets 2,706 2,533 2,359
System-wide sales (3) $ 2,360,360 $ 2,205,269 $ 1,971,477
Percentage increase (4) 7.0 % 11.9 % 10.8 %
Average sales per restaurant:
Company-owned $ 799 $ 791 $ 772
Franchise 929 935 899
System-wide (3):
Core markets 947 939 902
Developing markets 802 819 801
All markets 907 906 874
Change in comparable restaurant sales (5):
Company-owned 0.0 % 1.7 % 1.8 %
Franchise -0.3 3.2 1.8
System-wide (3):
Core markets 1.1 4.3 2.8
Developing markets -5.1 -2.3 -2.0
All markets -0.3 3.0 1.8
(1) As a percentage of company-owned restaurant sales.
(2) Number of restaurants open at end of year.
(3) System-wide restaurant count and sales include both company-owned and franchise information. Management believes that system-wide information
is useful in analyzing the growth of the brand as well as the company’s revenues since franchisees pay royalties based on a percentage of sales.
(4) Represents percentage increase from the comparable period in the prior year.
(5) Represents percentage change for stores open since the beginning of fiscal year 2002 for company-owned restaurants and stores open for a minimum
of one year for franchise restaurants and system-wide restaurants.