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Cautionary Statement
2
Certain information in this presentation may constitute forward-looking
statements under the Private Securities Litigation Reform Act of 1995.These statements involve risks and uncertainties, and actual results may
differ materially from current expectations. These risks are more fully
described in the company’s SEC filings. This presentation also includes
certain non-GAAP information, including system-wide restaurant count and
sales information, which include data for both company and franchisedrive-ins. Management believes that system-wide information is useful in
analyzing the growth of the Sonic brand as well as the company's
revenues, since franchisees pay royalties based on a percentage of sales.
Other non-GAAP measures, such as Free Cash Flow, are defined
elsewhere and, in management’s view, provide additional insight into thecompany's performance.
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Solid Franchise Business with Room to Grow
• 62 Years in Business
• 21st Century Brand
• 89% of Units Franchised
• Well Capitalized Franchisee Base
• Consistent Free Cash Flow* for Share Repurchasesand Dividend
• Flexible Capital Investments
• Significant Long-term Growth Opportunities
3*Free cash flow is defined as net income plus depreciation, amortization and stock compensation expense, less capital expenditures.
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Q1 FY 2016 Highlights
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• 5.3% of system same-store sales growth
• Repurchased $47 million in stock
• 140 bps of company margin improvement
• EPS increased 33%
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A Distinctive Drive-In Experience
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• Fun, retro-future look stands out in acrowded QSR segment
• Drive in, drive-thru or dine on our patio
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Unique and Delightfully Surprising Menu
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• Eclectic menu offersextensive choices oftraditional favorites andSonic classics
• Breadth of menu, fromsandwiches and sidesto drinks and desserts,keeps Sonic relevant tocustomers
• High quality, made afteryou order
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Classic Carhop Service
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• Carhops deliver fast, friendly and
personalized service• Carhops connect with customers and
enhance the Sonic dining experience
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The Most Diverse Menu in QSR
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Based on system drive-in data for 12months ended November 30, 2015
Breakfast
6%
Burgers
16%
Chicken
9%
Coneys
7%
Frozen/Fountain
39%
Faves & Craves
19%
Toasters
2%
Other
2%
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Premium and Value Across Day Parts
$2.3 Billion
Chicken continues to be a significant contributor to growth
After Dinner 18%
Afternoon22%
Morning12%
12 months ended November 30, 2015
Lunch/Dinner 48%
% of System Sales
SOURCE: Sonic System Data
8
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Increased Share of Voice
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0%
5%
10%
15%
20%
25%
30%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TTM
May'15
2015
N a t i o n a l + L o c a l T
V
S O V
Source: TV: Kantar, OLV: Competitrack (thru Mar’14), Zenith analysis of Kantar (Apr’14-Current)
Gross Ratings Points
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58
54 54
47
40
28
21
Second Highest Ad Awareness
Total Ad Awareness of Sonic and Competitors Among Total General Population
12
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New Rules of Engagement
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Customer Connection
Targeted MessagePersonalized Transaction
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Sustaining Same-Store Sales Through 2020
Technologya Key
Driver ofSSS in the
Future
Email &Texting
APP
SocialMedia
POPS
CRM
POS
CurrentMedia
10
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Average Unit Volumes Continue to Build
$1,037$1,066
$1,109 $1,153
$1,244$1,275+
$1,500
$600
$800
$1,000
$1,200
$1,400
$1,600
2011 2012 2013 2014 2015 2016E Target2020
0.5% 2.2% 2.3% 3.5% 7.3% +2-4% +2-4%CAGR
System same-store sales growth
$ in 000’s
7
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Company-Drive-In Margins*
Operating Leverage
*includes non-controlling interests (formerly minority interests)
14.1%15.6%
16.5%17%-18%
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 P(Goal)
16
14.7%
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Development
New states entered since 20053,529 Sonic drive-ins in 45 states
273
123
193
190133
951166
73
226
76
106
53
88
18
80
93
68
25 297
44 1743
3
108
22
5
27
1
11
16
3
98
77
17
17
56
18
11
2
4
4
2
Current Penetration – November 30, 2015
10
1
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New Store Development and Investment
40 41
50-60
14
30
30-40
FY 14 FY 15 FY 16E
Relocations and Rebuilds
80-100
54
New Store Openings
71
14
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Our Franchisees Believe in Our Brand
19
Franchisees investing heavily in POPS and POS
( $
i n 0
0 0 ’ s )
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New Store Commitments
20
49
79
115
152
2011 2012 2013 2014 2015
Incremental new-store commitments by year obtained
45 new storecommitments inF1Q16 versus 11
in F1Q15.
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Capital Structure
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*Free cash flow is defined as net income plus depreciation, amortization and stock compensation expense, less capitalexpenditures.**Net Debt defined as total debt less unrestricted cash on balance sheet, EBITDA is defined as earnings before interest, tax,depreciation and amortization and stock compensation expense
Significant Free Cash
Flow Generation
Use of Cash to Enhance
Value
Financial Objectives
$36.8 million unrestrictedcash balance
$70 to $75 million of freecash flow* expected in FY2016
Quarterly cash dividend of$0.11 per share ofcommon stock
Authorized $145 millionshare repurchase throughfiscal 2016
Purchased $47 million instock in fiscal Q1
Grow EBITDA withimproved sales
Target 3.0x net debt toEBITDA** (via EBITDAgrowth and additional debtissuance)
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Use of Free Cash Flow
$35
$80
$124 $126
$19 $21
2012 2013 2014 2015 2016E
Share repurchase Dividends
$31
$ in millions
16
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• Highly differentiated brand
• Sustained business momentum
• Strong free cash flow yield
• Solid business model for consistent EPS growth• Significant long-term growth opportunities
Key Investment Points
24
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