Sonic 2011 Annual Report Download - page 21

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Management's Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
Revenues. The following table sets forth the components of revenue for the reported periods and the relative change
between the comparable periods.
Revenues Percent
Year Ended August 31, Increase/ Increase/
($ in thousands) 2011 2010 (Decrease) (Decrease)
Revenues:
Company Drive-In sales $ 410,820 $ 414,369 $ (3,549) (0.9)%
Franchise Drive-Ins:
Franchise royalties 124,127 122,385 1,742 1.4
Franchise fees 1,744 2,752 (1,008) (36.6)
Lease revenue 6,023 6,879 (856) (12.4)
Other 3,237 4,541 (1,304) (28.7)
Total revenues $ 545,951 $ 550,926 $ (4,975) (0.9)%
Revenues Percent
Year Ended August 31, Increase/ Increase/
($ in thousands) 2010 2009 (Decrease) (Decrease)
Revenues:
Company Drive-In sales $ 414,369 $ 567,436 $ (153,067) (27.0)%
Franchise Drive-Ins:
Franchise royalties 122,385 126,706 (4,321) (3.4)
Franchise fees 2,752 5,006 (2,254) (45.0)
Lease revenue 6,879 3,985 2,894 72.6
Other 4,541 3,148 1,393 44.3
Total revenues $ 550,926 $ 706,281 $ (155,355) (22.0)%
The following table reflects the changes in sales and same-store sales at Company Drive-Ins. It also presents information
about average unit volumes and the number of Company Drive-Ins, which is useful in analyzing the growth of Company
Drive-In sales.
Company Drive-In Sales
Year ended August 31,
($ in thousands) 2011 2010 2009
Company Drive-In sales $ 410,820 $ 414,369 $ 567,436
Percentage (decrease) (0.9)% (27.0)% (15.5)%
Company Drive-Ins in operation(1):
Total at beginning of period 455 475 684
Opened 3511
Acquired from (sold to) franchisees, net (5) (16) (205)
Closed (net of re-openings) (7) (9) (15)
Total at end of period 446 455 475
Average sales per Company Drive-In $ 920 $ 893 $ 954
Percentage increase (decrease) 3.0% (6.4)% (5.3)%
Change in same-store sales(2) 1.8% (8.8)% (6.4)%
(1) Drive-ins that are temporarily closed for various reasons (repairs, remodeling, relocations, etc.) are not considered
closed unless the company determines that they are unlikely to reopen within a reasonable time.
(2) Represents percentage change for drive-ins open for a minimum of 15 months.
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