Investor Presentation

Cautionary Statement
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 companys 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 franchise
drive-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 managements view, provide additional insight into the
company's performance.

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 Repurchases
and 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.

Q1 FY 2016 Highlights

5.3% of system same-store sales growth

140 bps of company margin improvement

Repurchased $47 million in stock

EPS increased 33%

Contributors to EPS Growth Rate

Multi-Layered Growth Strategy
Percentages represent portion of EPS growth attributable to each of these layers.

4% - 5%

14% to
20%
EPS
Growth

2% - 3%
2% -3%
3% -4%

Use of Free Cash Flow

Ascending Royalty Rate

3% -5%
Development
Operating Leverage
Same-Store Sales

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

Unique and Delightfully Surprising Menu

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

Classic Carhop Service

Carhops deliver fast, friendly and

personalized service
Carhops connect with customers and
enhance the Sonic dining experience

The Most Diverse Menu in QSR

Toasters
2%

Other
2%

Faves & Craves

19%

Frozen/Fountain
39%

Breakfast
6%

Burgers
16%
Chicken
9%
Coneys
7%
Based on system drive-in data for 12
months ended November 30, 2015
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Premium and Value Across Day Parts

Chicken continues to be a significant contributor to growth
% of System Sales

$2.3 Billion

Morning
12%

After Dinner
18%

Afternoon
22%
Lunch/Dinner 48%

12 months ended November 30, 2015

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SOURCE: Sonic System Data

Increased Share of Voice

Gross Ratings Points
30%

National + Local TV SOV

25%

20%

15%

10%

5%

0%
2005

2006

2007

2008

2009

2010

Source: TV: Kantar, OLV: Competitrack (thru Mar14), Zenith analysis of Kantar (Apr14-Current)

2011

2012

2013

2014

TTM
May'15

2015

11

Second Highest Ad Awareness

Total Ad Awareness of Sonic and Competitors Among Total General Population

58
54

54
47
40

28
21

12

New Rules of Engagement

Customer Connection
Targeted Message
Personalized Transaction

13

Sustaining Same-Store Sales Through 2020

Current
Media

POS

CRM

Email &
Texting

Technology
a Key
Driver of
SSS in the
Future

APP

Social
Media
POPS

10

Average Unit Volumes Continue to Build

$ in 000s
$1,600
$1,500

$1,400
$1,244

$1,200

$1,275+

$1,153

$1,109
$1,037

$1,066

$1,000

$800

$600
System samestore sales growth

2011

2012

2013

2014

2015

2016E

Target
2020

0.5%

2.2%

2.3%

3.5%

7.3%

+2-4%

+2-4%
CAGR
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Operating Leverage
Company-Drive-In Margins*

14.1%

14.7%

FY 2012

FY 2013

*includes non-controlling interests (formerly minority interests)

15.6%

FY 2014

16.5%

FY 2015

17%-18%

FY 2016 P
(Goal)

16

Development
Current Penetration November 30, 2015
11
2

16

18

3
5

25

17

133

73

43

44 17

80

68

93

27

29
22

11

273

190

3
76

53

4
41

17
1
18

88

226
193

77
123 106

108

951
166
98
3,529 Sonic drive-ins in 45 states
New states entered since 2005

10

New Store Development and Investment

Relocations and Rebuilds
New Store Openings
80-100
71

30-40

54

30
14
50-60
40

41

FY 14

FY 15

FY 16E

14

Our Franchisees Believe in Our Brand

($ in 000s)

Franchisees investing heavily in POPS and POS

19

New Store Commitments

Incremental new-store commitments by year obtained

45 new store
commitments in
F1Q16 versus 11
in F1Q15.
152

115
79

49

2011

2012

2013

2014

2015
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Capital Structure
Significant Free Cash
Flow Generation

Use of Cash to Enhance

Value

$36.8 million unrestricted

Quarterly cash dividend of

cash balance
$70 to $75 million of free

cash flow* expected in FY

2016

$0.11 per share of

common stock
Authorized $145 million

share repurchase through

fiscal 2016

Financial Objectives
Grow EBITDA with

improved sales
Target 3.0x net debt to

EBITDA** (via EBITDA

growth and additional debt
issuance)

Purchased $47 million in

stock in fiscal Q1

*Free cash flow is defined as net income plus depreciation, amortization and stock compensation expense, less capital
expenditures.
**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

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Use of Free Cash Flow

$ in millions
Share repurchase

Dividends

$19

$21

$124

$126

2015

2016E

$80
$31

$35

2012

2013

2014

16

FY 2016 Outlook

EPS growth of 16-20%

2% to 4% same-store sales
50 to 60 new franchise drive-in openings
Drive-in margin improvement from 75 to 125 bps
SG&A expense of $81.5 million to $82.5 million
Depreciation expense of approximately $45.5 million to
$46.5 million
Capex of $35 million to $40 million
Free cash flow of $70 million to $75 million
Tax rate of 36.5% to 37.5%

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Key Investment Points

Highly differentiated brand
Sustained business momentum
Strong free cash flow yield
Solid business model for consistent EPS growth
Significant long-term growth opportunities

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