Commenting on the drivers for Sonic's results in the third quarter, Hudson noted that the company is increasing its media expenditures to approximately $125 million this year, up from $110 million in fiscal 2004. The increased expenditures—$60 million this year from $32 million in fiscal 2004—reflects Sonic's shifting advertising streams, with an emphasis on national cable advertising.

"National cable allows us to target more effectively and better reach a network cable audience; 54% of the viewers are getting news and entertainment from cable," Hudson said. "The national cable allows us disproportionately and positively impact our developing markets."

During the third quarter, Sonic opened 40 new drive-ins, including 27 franchise restaurants, compared with a total of 53 in the year-earlier period, which included 45 by franchisees. In the first nine months of 2005, the company opened 106 new drive-ins, including 83 franchise restaurants, compared with 123 drive-ins opened during the same period last year. With its progress through May, the company now expects to open approximately 175 to 185 new drive-ins in fiscal 2005, including approximately 140 to 150 by franchisees.

Looking ahead to the fourth quarter of fiscal 2005, Sonic expects its net income to increase in the range of 16% to 18% over the same period last year. This growth should translate into diluted earnings per share of approximately 39 cents to 40 cents for its fourth fiscal quarter ending August 31, 2005, versus 34 cents in the year-earlier period. For the fiscal year ending in August, the company expects net income growth of 20% to 21%, resulting in diluted earnings per share of approximately $1.21 to $1.22 per share for fiscal 2005.