Sonic 2003 Annual Report Download - page 6

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p.04
take a stake in our company-owned drive-ins and oversee their operations, to our
experienced and entrepreneurial employees. These positive effects also have reached
outside the company, extending to our loyal supply partners and, of course, our
stockholders. We are indeed grateful for the confidence placed in us by all of these
people, some now for 50 years. And we recognize that with each individual story of
opportunity, a larger picture of Sonic comes into view – one of a growing brand that
endeavors to extend a sense of surprise and delight, satisfaction, fulfillment and
success to everyone it touches.
Such a discussion of Sonic’s past and present logically invites a view toward the
future and what it may hold for our company. Clearly, we think the best years are still
ahead for our brand.
Today, the ongoing shift in consumer preferences toward fresh tastes and superior
service continues to work to our favor as we heighten our efforts to keep the Sonic
brand relevant and compelling to customers. Our concept has always been about
blending high quality, differentiated products with fast, curbside service, all combined
in a fun drive-in setting that’s hard to match. We’re excited about the new menu ideas
that will be rolling out in the coming year and the continued growth of our breakfast
program. These product and day-part initiatives, together with our planned increase in
media expenditures to over $110 million in fiscal 2004 from $100 million last year,
and our growing emphasis on network cable advertising to reach new audiences and to
provide better support for Sonic in developing markets, should drive sales growth in
the coming year. Combine those strategies with a strong development program in
fiscal 2004, its related impact on franchising income, and our unique ascending
royalty structure, and you can see why we are convinced that the Sonic brand remains
positioned for bigger and better things ahead.
In closing, we’d like to thank all those associated with the Sonic brand for a great
50th year, and for the 49 amazing ones before that. As we’ve said throughout this
golden anniversary year, Thanks a Tot!
Sincerely,
Clifford Hudson Pattye Moore
Chairman and President
Chief Executive Officer