Sonic Responds to Remarks about the Company's Franchisees
OKLAHOMA CITY, Oct 01, 2008 (BUSINESS WIRE) -- Sonic Corp. (NASDAQ:SONC) today responded to remarks in the press yesterday concerning the company's franchisees, who were used to illustrate the problems of a tightening credit market. As the company pointed out last week in clarifying a national news story about GE Capital, Sonic has not been informed of any cut-back in franchisee financing and continues to have other financing sources beyond GE Capital, which represents less than 10% of the lending to Sonic franchisees. Sonic's franchisees, in fact, ordinarily rely on multiple lending sources for their capital needs. As such, the company believes the brand remains poised to continue its expansion into new markets and that Sonic franchisees remain on course to complete more drive-in retrofits in the coming year.
Sonic concurs that the current state of the economy is challenging and could become more challenging in the future. Nevertheless, Sonic and its franchisees, who comprise some of the most successful small businesses in America, are positioned for future growth and increased development.
To see the actual news release Sonic distributed last week, please visit www.sonicdrivein.com and go to the Newsroom under the Strictly Business tab.
Sonic, America's Drive-In, originally started as a hamburger and root beer stand in 1953 in Shawnee, Okla., called Top Hat Drive-In, and then changed its name to Sonic in 1959. The first drive-in to adopt the Sonic name is still serving customers in Stillwater, Okla. Sonic has more than 3,400 drive-ins coast to coast, where more than a million customers eat every day. For more information about Sonic Corp. and its subsidiaries, visit Sonic at www.sonicdrivein.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those expressed in, or underlying, these forward-looking statements are detailed in the company's annual and quarterly report filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.
SOURCE: Sonic Corp.