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Sonic Boosts Unit Count

OKLAHOMA CITY-The drive-in restaurant chain plans to open 180 to 200 new units in the coming fiscal year on top of 2006's 173.

By Debra Hazel and Bob Howard | Updated on October 18, 2006

OKLAHOMA CITY-With store-level profits rising 67% over the past three years, Sonic Corp. plans to boost its new drive-in restaurant openings this year and expand its retrofit program, executives said at its year-end conference call.

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.

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