Sonic 2006 Annual Report Download - page 11

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Please find page 11 of the 2006 Sonic annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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From time to time, people ask us why our commercials run in markets where we
have no drive-ins. The nature of this question reflects on our increasing use of cable
network advertising, which extends beyond our local areas to provide regional or
national exposure for Sonic. First and foremost, cable advertising is an effective and
efficient way to reach our markets and the important customer segments we target,
and it's a strong complement to our media strategy for traditional network
programming and local market initiatives. Additionally, cable advertising has proven
to be a strong catalyst for sales in developing markets. As a pleasant side effect, we
also have found that it typically has stimulated considerable interest for Sonic prior to
our arrival in new markets, raising consumer awareness and excitement in advance of
new drive-in openings. For example, consider that in fiscal 2006, our average annual
system-wide drive-in volume was $1,070,000. In Spokane,Washington, one of our new
markets this year, our franchisee's sales hit $1 million in the first 89 days…talk about
captivating customers! Importantly, this was not the exception for us last year, but
more indicative of a welcome and sustained trend. Clearly, cable advertising has been
an important factor in our higher average unit volume growth, helping to push new
drive-in sales up 20% in fiscal 2006 versus the level of just two years ago.