Sonic Corp

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International Guild of Hospitality & Restaurant Managers

101 Park Avenue
Oklahoma City , OK 73102

Phone: (405) 280-7654
Fax: (405) 280-7568

Sonic Corporation operates and franchises a chain of drive-in restaurants in the United States . As of August 31, 2001 , the Company had 2,359 restaurants in operation, consisting of 393 Company-owned restaurants and 1,966 franchised restaurants, principally in the southern two-thirds of the United States . At a typical Sonic restaurant, a customer drives into one of 24 to 36 covered drive-in spaces, orders through an intercom speaker system, and has the food delivered by a carhop within an average of four minutes. The Company has two operating subsidiaries: Sonic Industries Inc. and Sonic Restaurants, Inc. Sonic Industries Inc. serves as the franchisor of the Sonic restaurant chain, as well as the administrative services center for the Company. Sonic Restaurants, Inc. develops and operates the Company-owned restaurants.

Sonic restaurants offer made-to-order hamburgers and other sandwiches, and feature Sonic signature items, such as extra-long cheese coneys, hand-battered onion rings, tater tots, specialty soft drinks including cherry limeades and slushes, and frozen desserts. In addition, the Company's restaurants offer certain other items during limited-time promotions. Sonic began offering a breakfast menu in certain test markets in October 1999. The breakfast menu is offered in markets comprising approximately 17% of all Sonic restaurants. Beginning in the spring of 2002, the Company plans to expand the number of restaurants offering the breakfast menu to about one-third of all Sonic restaurants. Those restaurants serving a breakfast menu are open beginning at 6 a.m. to 7 a.m. and serve the full menu all day. Items on the breakfast menu include sausage, ham, or bacon with egg and cheese Toaster sandwiches, sausage and egg burritos, and specialty breakfast drinks.

As of August 31, 2001 , the Company owned or franchised drive-in restaurants located in 29 states, but principally in the southern two-thirds of the United States . The Company's core markets, consisting of the nine contiguous states of Arkansas, Kansas, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, Tennessee and Texas, contained approximately 76% of all Sonic restaurants as of August 31, 2001. Developing markets are located in Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Nebraska, Nevada, North Carolina, Ohio, Oregon, South Carolina, Utah, Virginia, West Virginia and Wyoming. The Company opened its first restaurant in Mexico in August 2001, which is its only restaurant located outside of the United States . The Company has a development agreement providing for eight additional restaurants to be opened in Mexico in the next four years.

The typical Sonic drive-in restaurant consists of a kitchen housed in a one-story building flanked by two canopy-covered rows of 24 to 36 parking spaces, with each space having its own intercom speaker system and menu board. In addition, since 1995, the Company has incorporated a drive-through service and patio seating area in most new restaurants. A few Sonic restaurants provide an indoor seating area. In fiscal year 1997, the Company began implementing a remodeling program to retrofit all Sonic drive-in restaurants. The retrofit includes new signage, new menu and speaker housings, and significant trade dress modifications to the exterior of each restaurant's building. The Company implemented the program on a market-by-market basis and as of August 31, 2001 , 96% of the Sonic chain had completed the retrofit. All markets now feature the new retrofit signage and trade dress style.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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