868611--10/29/2007--SONIC

related topics

{cost, regulation, environmental}

{financial, litigation, operation}

{debt, indebtedness, cash}

{product, market, service}

{condition, economic, financial}

{operation, natural, condition}

{loan, real, estate}

{property, intellectual, protect}

{competitive, industry, competition}

{stock, price, operating}

{customer, product, revenue}

{acquisition, growth, future}

Events reported in the media, such as incidents involving food-borne illnesses or food tampering, whether or not accurate, can cause damage to our reputation and rapidly affect sales and profitability. The restaurant industry is highly competitive, and that competition could lower our revenues, margins, and market share. Changing dietary preferences may cause consumers to avoid our products in favor of alternative foods. Our earnings and business growth strategy depends in large part on the success of our franchisees, who exercise independent control of their businesses. Changes in economic, market and other conditions could adversely affect Sonic and its franchisees, and thereby Sonic s operating results. Our financial results may fluctuate depending on various factors, many of which are beyond our control. Our profitability may be adversely affected by increases in energy costs. Shortages or interruptions in the supply or delivery of perishable food products or rapid price increases could adversely affect our operating results. Failure to successfully implement our growth strategy could reduce, or reduce the growth of, our revenue and net income. Our outstanding and future leverage could have an effect on our operations. Our outstanding and future leverage could have an effect on our operations. Sonic Drive-Ins are subject to health, employment, environmental and other government regulations, and failure to comply with existing or future government regulations could expose us to litigation, damage to our reputation and lower profits. Litigation from customers, franchisees, employees and others could harm our reputation and impact operating results. We may not be able to adequately protect our intellectual property, which could decrease the value of our brand and products. Ownership and leasing of significant amounts of real estate exposes us to possible liabilities and losses. Catastrophic events may disrupt our business.

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868611--10/29/2007--SONIC_CORP