Sonic 2005 Annual Report Download - page 16

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While increasing our bench strength last year, we have also worked to strengthen Sonic’s Board oversight
through the addition of an independent, highly qualified director. In June, Michael J. Maples, who was
Executive Vice President of Microsoft Corporation and a member of its Office of the President until his
retirement in 1995, joined our Board. Mike brings uncommon insight and perspective to Sonic in the
areas of technology, product development, and marketing, and will add measurably to the quality and
experience of the Board.
I think the one accomplishment of 2005 that will likely benefit us most in the years ahead is the way we
built on the momentum with which we started the year. So, how do we keep that going? How do we
repeat our landmark success from last year, especially considering an intensifying competitive environment
and challenges created by higher prices at the fuel pump? First, we gain a sense of confidence about these
questions because of the fundamental strength of our business, which produced strong sales in a year
already laboring under many of the same pressures. We think our unique brand position, characterized by
one of the most eclectic menus around, classic carhop service, and the exciting, retro-future setting of our
drive-ins, makes Sonic one of the most highly differentiated concepts in QSR. Second, we believe the
rapid and significant growth we have experienced in drive-in level profits will continue to provide a direct
catalyst for new drive-in development to foster additional growth in the years to come. Lastly, the value
proposition that Sonic offers is compelling, in our view, especially in times like these. Meals away from
home will no doubt remain an essential part of the busy family’s lifestyle today. In the end, customers will
trade for the greatest overall package of value, convenience, quality, and taste, and no one puts that
package together quite like Sonic.
Before I end, allow me to reflect on one final record. During fiscal 2005, I marked my tenth year as Chief
Executive Officer for Sonic. It’s been a wonderful time for me personally, seeing this chain come together
with an unparalleled level of trust and confidence growing between our company and its franchisees. I am
honored to have played my role in that success and, seeing what we have all accomplished together over
the past decade, I am even more excited about the years ahead of me with Sonic.
Sincerely,
Clifford Hudson
CHAIRMAN, CHIEF EXECUTIVE OFFICER AND PRESIDENT
80%
of our chain is
franchise operated