Sonic at a Glance. *Free cash flow is defined as net income plus depreciation, amortization and stock compensation expense, less capital expenditures.

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Melissa Mathews
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2 Cautionary Statement Certain information in this presentation may constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995 These statements involve risks and uncertainties, and actual results may differ materially from current expectations These risks are more fully described in the company s SEC filings This presentation also includes certain non-gaap information, including system-wide restaurant count and sales information, which include data for both company and franchise drive-ins Management believes that system-wide information is useful in analyzing the growth of the Sonic brand as well as the company's revenues, since franchisees pay royalties based on a percentage of sales Other non-gaap measures, such as Free Cash Flow, are defined elsewhere and, in management s view, provide additional insight into the company's performance 2

3 Sonic at a Glance Nation s #1 drive-in chain, with more than 3,500 locations in 43 states coast to coast Franchise business model with 88% of the system franchised Solid operating cash flows Strong free cash flow* yield 3 *Free cash flow is defined as net income plus depreciation, amortization and stock compensation expense, less capital expenditures

4 A Distinctive Drive-In Experience Fun, retro-future look stands out in a crowded QSR segment Drive in, drive-thru or dine on our patio 4

5 Unique and Delightfully Surprising Menu Eclectic menu offers extensive choices of traditional favorites and Sonic classics Breadth of menu, from sandwiches and sides to drinks and desserts, keeps Sonic relevant to customers High quality, made after you order 5

6 Classic Carhop Service Skating Carhops deliver fast, friendly and personalized service Carhops connect with customers and enhance the Sonic dining experience 6

7 The Most Diverse Menu in QSR Burgers 18% Chicken 7% 7% Coneys Other 1% 20% Faves & Craves Breakfast Toasters 6% 2% 39% Based on system drive-in data for 12 months ended November 30, 2012 Frozen/Fountain 7

8 Balanced Day Parts Afternoon Sonic vs Other Quick Service Restaurants QSR After Dinner 7% 10% 22% Morning After Dinner 16% Sonic 13% Morning Afternoon 23% 61% 48% 12 months ended November 30, 2012 Source: CREST Lunch/ Dinner Lunch/ Dinner 12 months ended November 30,

9 Q1 FY13 Highlights 22% EPS increase 30% System Same-Store Sales Growth 42% Company Same-Store Sales Growth 80 bps Drive-in Margin Improvement $18 Million Share Repurchase 9

The Foundation: Same-Store Sales Growth FY 2011 FY 2012 FY 2009- FY 2010 Effective Creative Layered

10 The Foundation: Same-Store Sales Growth FY 2011 FY 2012 FY FY 2010 Effective Creative Layered Day-Part Promotions Efficient Media Buying Improved Product Quality Improved Value Perception Improved Service 10

11 Business Model for Consistent Earnings Growth Multi-Layered Growth Strategy Development Operating Leverage Ascending Royalty Rate EPS Growth Use of Free Cash Flow Same-Store Sales 11

12 FY 2013-FY 2015 Earnings Drivers Initiatives to drive the Multi- Layered Growth Strategy National Media Innovative Product Pipeline POS Implementation Supply Chain Management Share Repurchases Small Building Prototype FY 15 License Conversion 12

13 FY 2013 Same-Store Sales Initiatives More Effective Media Strategy Innovative Product Pipeline Layered Day-Part Promotional Strategy Two Guys Creative Messaging 13

14 More Effective Media Strategy Shift to more National Television Total Working Media* 7% 17% 26% 35% 67% 48% CY2012 CY * Percentages provided represent estimates based on current information

15 Innovative Product Pipeline FY 2013 Focus Breakfast Entrees Snacks Drinks Ice Cream 15 Breakfast Lunch Dinner Afternoon Afternoon Evening

16 Layered Day-Part Promotional Strategy Existing and New Products to Leverage All Day-Parts Sonic After Dinner 16% Morning 13% Afternoon 23% 48% Lunch/ Dinner 12 months ended November 30,

17 Please View TV Monitors For Sonic s Commercials 17

18 Operating Leverage Initiatives Media Expenditures Innovative Product Pipeline POS Implementation Supply Chain Management Share Repurchases Small Building Prototype FY 15 License Conversion 18

19 Technology Drives Margin Expansion POS implementation begins in 2013 Food and labor cost tools Supply Chain Management 19

20 Development and Ascending Royalty Rate Media Expenditures Innovative Product Pipeline POS Implementation Supply Chain Management Share Repurchases Small Building Prototype FY 15 License Conversion 20

21 Current Penetration November 30, 2012 More than 450 new Sonic drive-ins have opened during the last five years New states entered since ,549 Sonic drive-ins in 43 states

22 ROI Enhancements Value Engineering Smaller Building Reduce Building Costs by 15% to 20% 22

23 Ascending Royalty Rate Structure Sonic has been successful at increasing overall royalty rates for new and renewed contracts Overview of Royalty Structures License Type # of Stores (1) Royalty Range Average Rate (2) #4 and #42 (3) 5 10% - 30% 25% Comments Steps up to #5 or converts to #7 over next several years ~900 licenses #5 and # % - 40% 33% expected to Steps convert up to #6 to or converts #6 to #7 over by next end several of 2014 years # % - 45% 37% Steps up to #6 royalty rate in 2014 #6 1,630 10% - 50% 41% # % - 50% 45% All new stores under #6 or #7 All new stores under #6 or #7 (1) Franchise stores as of 11/30/12 (2) Based on $10 million average unit volume (3) License #42 also includes a flat monthly fee 23

24 Use of Free Cash Media Expenditures Innovative Product Pipeline POS Implementation Supply Chain Management Share Repurchases Small Building Prototype FY 15 License Conversion 24

25 Capital Strength of the Franchise Business Model Significant Free Cash Flow Generation $43 million unrestricted cash balance ~$45 to $50 million of free cash flow* expected in FY 2013 increasing thereafter Use cash to: Invest in Brand Pay down debt Share Repurchases Achieve ~3x Net Debt to EBITDA (via EBITDA growth and debt pay down) over next two years Since September of 2011, repurchased $55 million of shares representing ~11% of outstanding shares Increased share repurchase authorization *Free cash flow is defined as net income plus depreciation, amortization and stock compensation expense, less capital expenditures 25

26 Multi-Layered Growth Strategy Consistent, solid growth with limited capital or operating risk Same-Stores Sales Operating Leverage Development Ascending Royalty Rate Use of Free Cash Flow Near Term Mid Term 26

27 Key Investment Points Highly differentiated brand Sustained business momentum Strong free cash flow yield Solid business model for consistent EPS growth Significant long-term growth opportunities 27

28 28 NASDAQ Global Select Market - SONC

Tim Hortons Inc. 2008 Third Quarter Results. Conference Call and Web cast November 7, 2008

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