Sonic 2008 Annual Report Download - page 26

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Please find page 26 of the 2008 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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It’s in the headlines everywhere, across large cities and small towns, in more places than ever
before – Sonic is on the move, and it really has people talking. Starting in Oklahoma and
later building to a regional chain, one for years confined largely to the Southwest and
Southeast, we’ve more recently expanded our horizons nationally – coast to coast and border
to border. Consumers are excited about our new flavor of QSR and eclectic menu choices
Sonic brings to their communities. Investors are keen for the sizable market opportunities
that still await Sonic in so many states, even those we’ve called home for years. Loyal longtime
franchisees, as well as those new to our system, also see steadily rising average unit volumes
and drive-in level profits, appreciate the brand leadership that Sonic corporate provides, and
recognize the tremendous potential for Sonic’s ongoing expansion.
Over the past five years, we and our franchisees have opened almost 900 new drive-ins,
including 169 during fiscal year 2008. Through these steady development efforts, we’ve
expanded the chain to 3,475 locations as of August 31, 2008, up more than 28 percent over
the five-year period. Combined with new drive-in growth, our franchisees have picked up the
pace in relocations and rebuilds of existing drive-ins, which can dramatically improve
operating performance. Also, they have accelerated the implementation of our retrofit
program, which is now approximately 60 percent complete system-wide. As notable as these
accomplishments are, the future looks equally bright based on our solid development
pipeline: We ended this past fiscal year with commitments for new drive-ins totaling almost
1,000 – the highest level in our history.
Goin Fo Regiona
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