With more than 3,000 existing drive-ins, the Sonic chain has a lot of growth opportunities, Vaughan says. For example, there are 820 drive-ins in Texas, while there are only 26 in California and 85 in Florida. "We feel we've just barely tapped the potential of thechain," he said.

During fiscal 2005, 175 restaurants were opened, while the chain expects to open 190 and 200 new drive-ins including 155 to 165 franchise drive-ins during fiscal 2006. The chain is focused on building brand identity and strengthening brand awareness in existing and developing markets, Vaughan said, adding that the company has shifted its media strategy to national television advertising.

Vaughan said that the national advertising significantly impacted store sales volumes. In fact, store volumes surpassed $1 million per unit for the first time during fiscal 2005, he pointed out. He alsoattributed my of the sales volume increases to the addition of credit card terminals at each drive-in stall, which is a key differentiator in the quick-service restaurant industry.