SONIC — Backgrounder

Backgrounder

Road Rules

SONIC fosters these core values:

Relationships as a way of life
Entrepreneurial spirit
Respect for the individual
Surprise and delight

Rundown
In 1953, the prototype of the first SONIC Drive-In opened in Shawnee, Okla. Now, more than 50 years and 3,000 drive-ins later, SONIC enjoys the highest customer frequency rate in the quick-service restaurant industry. SONIC Corp. is an Oklahoma City-based, publicly held company that owns, operates and franchises SONIC Drive-Ins (NASDAQ: SONC). Today, Cliff Hudson, chairman of the board and chief executive officer of SONIC, leads the SONIC brand with average unit sales of more than $1 million.

Fast Lane
SONIC, which specializes in made-to-order fast food, is known for its specialty menu items and personal service. SONIC Unique menu items include TOASTER® Sandwiches (sandwiches served on thick Texas Toast), Extra-Long Cheese Coneys (hot dogs with chili and cheese), fresh-made Onion Rings, Tater Tots and a variety of Frozen Favorites Drinks® Treats and Fountain Favorites® Drinks. You can order more than 168,000 drink combinations making SONIC Your Ultimate Drink Stop!^SM SONIC's ever-growing menu is full of options to satisfy every taste, with frequent additions such as Fresh Fruit Smoothies.

In the 1950s, SONIC's unique use of curbside speakers to allow customers to place food orders without ever leaving their cars, spawned the slogan "SONIC, Service with the Speed of Sound." In recent years, that slogan has been replaced with "SONIC, America's Drive-In." SONIC was founded by Troy Smith and was originally named Top Hat Drive-In, the name was changed to SONIC in 1959.

In addition to having the highest customer frequency rate in the hamburger segment of the quick service restaurant industry, SONIC's honor roll of achievements also includes the following national recognitions:

Entrepreneur (January 2007)
Entrepreneur names SONIC® as the No. 1 franchise in the burger category on Entrepreneur's 2006 Franchise® 500 list, the most comprehensive ratings list of franchises in the world. SONIC's overall ranking rises to No. 8 on the Franchise 500 list.
Forbes (October 2006)
Forbes names SONIC® as the No. 104 on its 200 Best Small Companies List. This is the 13th consecutive appearance, giving SONIC® the longest standing tenure on the list.
Restaurants & Institutions (July 2006)
R&I's Top 400 Restaurant Chains listed SONIC at No. 14 for two consecutive years based on annual sales, number of units and average unit volume (AUV).
QSR Magazine (June 2006)
Franchisees rank SONIC No. 1 in QSR's Annual Brand Satisfaction Survey for creating an inclusive, collaborative environment. The survey measures franchisees among the largest 150 chains tracked by Restaurant Research and asks franchisee operators to rate their own restaurant concepts around nine key brand components – sales and profit prospects, menu, promotional line-up, advertising, operations, system condition, concept management and franchisee support.
Entrepreneur magazine (December 2005)
SONIC listed as the No. 1 franchise in the burger category on Entrepreneur's 2006 Franchise 500® list, the most comprehensive ratings list of franchises in the world. SONIC's overall ranking is No. 13 on the Franchise 500 list.
Restaurants & Institutions Annual Choice in Chains Award (August 2005)
For the past 12 years, SONIC has been named one of the top five chains in the Best Overall Burger QSR category. In 2005, SONIC received the highest rating for convenience compared to its competitors.
Forbes magazine (October and August 2005)
In October, SONIC ranked No. 95 in Forbes magazine's 200 Best Small Companies list for the 12th consecutive year. SONIC boasts the longest-standing tenure of any company on the list.
In August, SONIC ranked No. 28 in Forbes magazine's The 100 Best Mid-Cap Stocks based on its market capitalization. In order to qualify for this elite list, companies must have revenue of at least $500 million and net income of $15 million and show positive growth in five-year return on equity, sales and earnings.
QSR magazine (August 2005)
SONIC listed as No. 12 on QSR magazine's The QSR 50 for system-wide sales and No. 15 for unit growth.
Restaurants & Institutions magazine (July 2005)
R&I's Top 400 Restaurant Chains listed SONIC at No. 14 based on annual sales, number of units and average unit volume (AUV).
Nation's Restaurant News (June 2005)
The magazine's Top 100 Chain and Company Rankings ranked SONIC at No. 18 for number of units and No. 23 for system-wide sales growth.
International Foodservice Manufacturers Association (February 2004)
SONIC Chairman and CEO Cliff Hudson named top quick-service restaurant executive of the year by the International Foodservice Manufacturers Association for its annual Silver Plate Awards. A committee consisting of editors of foodservice-industry publications and last year's winners of the Silver Plate awards selected the winners.