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Sonic Drive-In New Franchisee Presentation FEB2013

Sonic Deal

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Sonic Drive-In New Franchisee Presentation FEB2013

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  1. FRANCHISING OPPORTUNITES THIS IS HOW YOU SONIC

  2. Sonic at a Glance Nation’s #1 drive-in chain, with more than 3,500 locations in 43 states coast to coast Most differentiated concept in QSR with high customer loyalty Strong free cash flow with proven franchise business model Operating model that can deliver consistent earnings growth

  3. Current Penetration – November 30, 2012 More than 450 new Sonic drive-ins have opened during the last five years New states entered since 2005 10 2 15 5 3 18 5 5 3 4 16 2 30 8 19 29 24 47 50 2 18 22 81 6 9 61 54 136 194 78 95 224 271 92 195 73 75 122 115 105 956 3,549 Sonic drive-ins in 43 states 167 103

  4. A Distinctive Drive-In Experience • Fun, retro-future look stands out in a crowded QSR segment • Drive - in, drive-thru or dine on our patio • Eclectic menu offers extensive choices of traditional favorites and Sonic classics • Breadth of menu, from sandwiches and sides to drinks and desserts, keeps Sonic relevant to customers • High quality, made after you order

  5. Classic Carhop Service • Skating Carhops deliver fast, friendly and personalized service • Carhops connect with customers and enhance the Sonic dining experience

  6. Driven by Great Initiatives Media 20/20 Media Plan Product Promotions New Products New Flavors Increased Sales and Profits Technology POS POPS Supply Chain Development Small Building Prototype Operations Operational Consistency Equipment

  7. Layered Day-Part Promotional Strategy Existing and New Products to Leverage All Day-Parts Sonic Morning After Dinner 13% 16% Afternoon 23% 48% Lunch/ Dinner 12 months ended November 30, 2012

  8. Balanced Day Parts Sonic vs. Other Quick Service Restaurants QSR Sonic After Dinner After Dinner Morning Morning Afternoon 5% 13% 17% 7% 16% Afternoon 23% 48% 71% Lunch/ Dinner Lunch/ Dinner 12 months ended February 29, 2012 12 months ended February 29, 2012 Source: CREST

  9. Brand Strategy Vision To become America’s most loved restaurant brand. Mission To have the most loyal and frequent customers in the QSR business. Brand Position Sonic’s Got It, Others Don’t How does Sonic accomplish this? • Increase Operation Consistency • Maximize Store Level Profits • Plan Market by Market • Develop Great People and Great Tools • Create Craveable Food and Drink • Connect with Customers • Win across Dayparts

  10. Innovative Product Pipeline FY 2013 Focus Ice Cream Breakfast Entrees Snacks Drinks Lunch Dinner Afternoon Afternoon Evening Breakfast

  11. 20/20 Media Initiative • Significant Increase in System GRPs* and Share of Voice • 20% Increase in TV GRPs in Year 1 • 50% Increase in TV GRPs in Year 5 • Effectively Promote Sonic Every Day-Part Every Quarter Every Market *GRP – Gross Rating Point, a term used in advertising to measure reach and frequency

  12. TV is the Dominant Video Medium Monthly Video Consumption by Device TV accounts for 95% of Total Video Time Per Month Source: Nielsen 2011 Cross Platform, P2+

  13. Growing Share of Voice

  14. the Two Guys Sonic! • Immediately recognizable • Ability to integrate across multiple dayparts • Showcase the on-lot experience • Lighthearted, accessible humor • Food-focused story line • Natural fit with social media

  15. Growing Sales and Profits with Technology Initiatives POPS Grow Profits by 100 to 200 Basis Points Grow Sales by Enhancing the Customer Experience

  16. Growing Profits with Supply Chain ! POS Distributors Brand Level Store Level Labor Scheduling Profitability Suppliers Inventory Management (product mix) Demand Forecasting

  17. Growing Sales and Profits with A Consistent Experience • Service and Quality Refocus • Elevate Assistant Manager Performance • Equipment Opportunities to Impact Drive-In Level Performance • Communications

  18. Sonic Development-Multiple Choices

  19. Patio Enhancements Norristown, PA Elizabeth, NJ Tinton Falls, NJ

  20. ROI Enhancements Value Engineering – Smaller Building Reduce Building Costs by 15% to 20%

  21. Conversions • Lower investment costs • Faster permitting and construction Local Concept Conversion – Cornelius, Oregon Burger King Conversion – Charleston, South Carolina

  22. Development Steps Development Agreement Site Selection License Agreement Construction Open

  23. Sonic Support Services Real Estate Construction Operations Business Planning Marketing Training Field H.R. FAC Advisory Councils

  24. Sonic-Next Steps Complete financial qualification process Franchise Disclosure-signature Conduct Due Diligence-Contact other franchisees Business Plan-Projections, bio’s, market Discovery Day-Oklahoma City Approval/Disapproval Award Franchise- Development Agreement

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