Sonic 2013 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2013 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.

Page out of 58

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

Management's Discussion and Analysis of Financial Condition and Results of Operations
20
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) 2013 2012 (Decrease) (Decrease)
Revenues:
Company Drive-In sales $ 402,296 $ 404,443 $ (2,147) (0.5)%
Franchise Drive-Ins:
Franchise royalties 130,009 125,989 4,020 3.2
Franchise fees 728 2,024 (1,296) (64.0)
Lease revenue 4,785 6,575 (1,790) (27.2)
Other 4,767 4,699 68 1.4
Total revenues $ 542,585 $ 543,730 $ (1,145) (0.2)%
Revenues Percent
Year Ended August 31, Increase Increase
($ in thousands) 2012 2011 (Decrease) (Decrease)
Revenues:
Company Drive-In sales $ 404,443 $ 410,820 $ (6,377) (1.6)%
Franchise Drive-Ins:
Franchise royalties 125,989 124,127 1,862 1.5
Franchise fees 2,024 1,744 280 16.1
Lease revenue 6,575 6,023 552 9.2
Other 4,699 3,237 1,462 45.2
Total revenues $ 543,730 $ 545,951 $ (2,221) (0.4)%
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) 2013 2012 2011
Company Drive-In sales $ 402,296 $ 404,443 $ 410,820
Percentage decrease (0.5)% (1.6)% (0.9)%
Company Drive-Ins in operation (1):
Total at beginning of year 409 446 455
Opened 213
Acquired from (sold to) franchisees, net 1(35) (5)
Closed (net of re-openings) (16) (3) (7)
Total at end of year 396 409 446
Average sales per Company Drive-In $ 990 $ 958 $ 920
Change in same-store sales (2) 2.5% 2.8 % (1.8)%
(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.
Same-store sales for Company Drive-Ins increased 2.5% for fiscal year 2013 and 2.8% for fiscal year 2012,
showing continued momentum from the Company’s successful implementation of initiatives to improve product
quality, service and value perception. Furthermore, we continued to focus on our innovative product pipeline and
increased media effectiveness. Company Drive-In sales decreased $2.1 million, or 0.5%, during fiscal year 2013