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should 2011 $545951 $410828 franchise fees and leases exhibit provides a variety of financial and operatin Sonic Corp. Selected Financial (all in 1,000) and Operating Data 2009 Total Revenues $706,281 Company Drive-In Sales $567,436 Company Drive-In Same Store Sales Change Advertising Expenditures $33,000 Net Income (After Taxes) $49,442 Total Assets (Year End) $22,500 $19.225 $679,742 $51833 2010 $550,926,000 $414,369 (8.8%) $22,500 $21,209 $737,320 $22,566 Total Stockholders Equity Sonic has attempted to make a variety of strategic changes to reverse its declining perfor mance. Since 2005, it has expanded into states in the Northeast, Northwest, and along the U.S. and Canadian border. In 2010 Sonic placed increased emphasis on more high quality food. This included the introduction of real ice cream, footlong quarter pound chili cheese hot dogs, a new line of premium beef hot dogs, bigger and better burgers, and new premium burritos with meat and cheese options. In addition, there was a renewed emphasis on improved customer service and a focus on greater consistency across visits over time and across different locations (both company owned and franchised). As it ended fiscal 2011, the company announced a $30 million common stock repurchase plan effective through August 31, 2012 4. Analyze Sonic's financial performance over the last couple of years. Note: This case was prepared as a basis for class discussion rather than to illustrate either effective or inef Questions 1. What are some of the population, social, and economic trends that may be influencing Sonic's performance? 2. Apply the "consumer shopping and purchasing model" (see Exhibit 3.7) to gain insigt into how Sonic can attract more customers. 3. Evaluate whether the strategies that Sonic is pursuing to improve performance are opt 4. Analyze Sonic's financial performance over the last couple of years. Note: This case was prepared as a basis for class discussion rather than to illustrate either effective fective handling of a retail situation. This case is based on the authors' patronage of Sonic Drive-Ins years, parts of the 1991 Prospectus which was used to take the company public, and 2009-2011 An Report to Stockholders

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