SONIC 2005 AR Final

SONIC 2005 AR Final - 6.0 1 3,000 300 Johnny Bench Drive...

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2005 Annual Report to Stockholders 3,000 20 1 One for the Record Books. We opened our 3,000th drive-in. Average unit volume broke the $1 million mark. Same-store sales increased 6.0%. Return on equity topped 20% for the 6th straight year. 6.0
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6.0 3,000 20 Sonic began in 1953 in Shawnee, Oklahoma. Today, we franchise and operate the largest chain of drive-in restaurants in the country, with more than 3,000 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 quick-service restaurant industry (QSR). Sonic Drive-Ins feature signature items, offering made-when-you-order hamburgers, Extra-Long Cheese Coneys, wraps, and other sandwiches, 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 and several low-calorie drinks, including a diet version of our classic Cherry Limeade. At a typical Sonic Drive-In, customers park in one of 24 to 36 canopy-covered spaces and place orders 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. 00 01 02 03 04 05 Drive-Ins System-Wide 2 2,885 2,706 2,533 2,359 2,175 3,039 00 01 02 03 04 05 $964 $907 $906 $874 $853 00 01 02 03 04 05 Change in System-Wide Same-Store Sales 2,3 0.3% 3.5% 2.3% 3.7% 6.0% 00 01 02 03 04 05 Return on Average Stockholders’ Equity 21.0% 21.1% 22.1% 21.9% 21.4% System-Wide Average Sales Per Drive-In 2 (in thousands) $1,023 Financial Highlights 2005 2004 % Change ($ in thousands, except per share data) Operations (for the year) Total revenues $ 623,066 $ 536,446 16% Income from operations $ 124,206 $ 106,114 17% Net income $ 75,381 $ 63,015 20% Net income per diluted share $ 1.21 $ 1.02 19% Return on average stockholders’ equity 21.0% 21.0% Financial Position (at year’s end) Total assets $ 563,316 $ 518,633 9% Stockholders’ equity $ 384,539 $ 334,762 15% System Information (for the year or at year’s end) Partner drive-ins 1 574 539 6% Franchise drive-ins 2,465 2,346 5% System-wide drive-ins 2 3,039 2,885 5% System-wide average drive-in sales 2 $ 1,023 $ 964 6% Change in system-wide sales 2 12.4% 13.1% Change in system-wide same-store sales 2,3 6.0% 6.5% 1 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. 2 System-wide information, which combines partner drive-in 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. 3 Changes in same-store sales based on drive-ins open for at least 15 months.
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SONIC 2005 AR Final - 6.0 1 3,000 300 Johnny Bench Drive...

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