The chain plans to open 180 to 200 new drive-ins in the coming fiscal year, including 150 to 160 by franchisees, despite obstacles. Some 35 to 40 new units (including 30 to 35 franchised units) will open in the first quarter, which ends Nov. 30.

"The development arena continues to be challenging, as our operators deal with rising land costs, a more complex development environment and rising interest rates," said W. Scott McClain, president of SONIC Industries, the company's franchising subsidiary. Capital expenditures for the year are estimated at $75 million to $80 million.

Sonic has approximately 3,200 drive-ins in the US and in Mexico. The chain opened 173 new locations and expanded into four new states during fiscal 2006, the company reported Tuesday. The company embarked on a new retrofit program during the past year and has implemented the new Sonic look at more than 100 partner drive-ins. Management expects to roll out the retrofit program to approximately 150 additional partner drive-ins this year and to begin to extend the program to franchised drive-ins in January.

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