SONIC 2004 AR Final

SONIC 2004 AR Final - Our drive-in restaurant experience,...

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Sonic began in 1953 in Shawnee, Oklahoma. Today, we franchise and operate the largest chain of drive-in restaurants in the country, with approximately 2,900 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 restaurant industry's quick- service sector. Sonic Drive-Ins feature signature items, offering made- when-you-order Toaster® Sandwiches, hamburgers and other sandwiches, Extra-Long Cheese Coneys, 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. At a typical Sonic Drive-In, customers order from one of 24 to 36 canopy-covered spaces 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.
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Net Income Per Diluted Share 2004 2003 Percent Change ($ in thousands, except per share data) Operations (for the year) Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 536,446 $ 446,640 20 % Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 106,114 $ 89,500 19 % Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 63,015 $ 52,261 21 % Net income per diluted share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.02 $ .86 19 % Return on average stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.0 % 21.1 % Financial Position (at year's end) Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 518,633 $ 486,119 7 % Stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 334,762 $ 265,398 26 % System Information System-wide average drive-in sales (for the year) 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 964 $ 907 6 % Change in system-wide sales (for the year) 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.1 % 7.0 % Change in system-wide same-store sales (for the year) 1, 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 % 0.3 % Partner drive-ins (at year's end) 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539 497 8 % Franchise drive-ins (at year's end) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,346 2,209 6 % System-wide drive-ins (at year's end) 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,885 2,706 7 % Financial Highlights p.1 Total Revenues (In millions) Net Income (In millions) Return on Equity ‘00 ‘01 ‘02 ‘03 ‘04 ‘00 ‘01 ‘03 ‘04 ‘00 ‘01 ‘03 ‘04 ‘00 ‘01 ‘03 ‘04 $536 $447 $400 $331 $280 $33 $39 $48 $52 $63 $.52 $.62 $.75 $.86 $1.02 21.9% 22.1% 21.1% 21.0% 21.4% System-wide Average Sales Per Restaurant (In thousands) $853 $874 $906 $907 $964 Stores in Operation 2,175 2,359 2,533 2,706 2,885 ‘00 ‘01 ‘03 ‘04 ‘00 ‘01 ‘03 ‘04 1 System-wide information, which combines partner 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. 2 Changes in same-store sales based on drive-ins open for at least 15 months. 3 Partner 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.
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What a tremendous year 2004 was for Sonic and all associated with the Sonic brand! This past fiscal year was one of building momentum, punctuated by great excitement and enthusiasm. In looking back, Sonic's solid performance and the strength of our business during the year were more than gratifying. From any perspective – from virtually any point of view – fiscal 2004 was a great year for Sonic!
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SONIC 2004 AR Final - Our drive-in restaurant experience,...

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