Sonic 2005 Annual Report Download - page 2

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6.0
3,000 20
Sonic began in 1953 in Shawnee, Oklahoma. Today, we
franchise and operate the largest chain of drive-in
restaurants in the country, with more than 3,000 Sonic
Drive-Ins from coast to coast and in northern Mexico.
Our drive-in restaurant experience, together with
a unique menu and personalized carhop service,
position us as one of the most highly differentiated
concepts in the quick-service restaurant industry (QSR).
Sonic Drive-Ins feature signature items, offering
made-when-you-order hamburgers, Extra-Long
Cheese Coneys, wraps, and other sandwiches, hand-
battered Onion Rings,Tater Tots, and a variety of
Frozen Favorites® desserts and Fountain Favorites®
drinks, including Cherry Limeades, Slushes and Cream
Pie Shakes. Sonic also offers a variety of choices for
health-conscious customers, including Fresh Tastes™
salads and several low-calorie drinks, including a diet
version of our classic Cherry Limeade.
At a typical Sonic Drive-In, customers park in one
of 24 to 36 canopy-covered spaces and place orders
through an intercom speaker system. A carhop
delivers the customer’s order curbside, usually within
four minutes. Customers also may stop at a drive-thru
window at most Sonics.
00 01 02 03 04 05
Drive-Ins
System-Wide2
2,885
2,706
2,533
2,359
2,175
3,039
00 01 02 03 04 05
$964
$907
$906
$874
$853
00 01 02 03 04 05
Change in System-Wide
Same-Store Sales2,3
0.3%
3.5%
2.3%
3.7%
6.0%
00 01 02 03 04 05
Return on Average
Stockholders’ Equity
21.0%
21.1%
22.1%
21.9%
21.4%
21.0%
System-Wide Average
Sales Per Drive-In2
(in thousands)
$1,023
Financial Highlights 2005 2004 % Change
($ in thousands, except per share data)
Operations (for the year)
Total revenues $ 623,066 $ 536,446 16%
Income from operations $124,206 $ 106,114 17%
Net income $75,381 $63,015 20%
Net income per diluted share $ 1.21 $ 1.02 19%
Return on average stockholders’ equity 21.0% 21.0%
Financial Position (at year’s end)
Total assets $563,316 $518,633 9%
Stockholders’ equity $ 384,539 $ 334,762 15%
System Information (for the year or at year’s end)
Partner drive-ins 1574 539 6%
Franchise drive-ins 2,465 2,346 5%
System-wide drive-ins 23,039 2,885 5%
System-wide average drive-in sales 2$ 1,023 $ 964 6%
Change in system-wide sales 212.4% 13.1%
Change in system-wide same-store sales 2,3 6.0% 6.5%
1Partner drive-ins are those Sonic Drive-Ins in which we own a majority
interest, typically at least 60%. Most supervisors and managers of
partner drive-ins own a minority equity interest.
2System-wide information, which combines partner drive-in and
franchise drive-in information, is a non-GAAP measure. We believe
system-wide information is useful in analyzing the growth of the Sonic
brand as well as our revenues, since franchisees pay royalties based on
a percentage of sales.
3Changes in same-store sales based on drive-ins open for at least
15 months.
6.5%
1