Tasty chatter from Sonic Corp.
Oklahoma City-based Sonic Corp. stages some of the most interesting conference calls of any of the state-based companies we cover. Perhaps I find them interesting because I eat there from time to time. But they’re also intriguing because they discuss real meat and potatoes issues — literally. For instance, during Monday’s discussion with analysts, the company revealed a new product will be unveiled next month at the drive-in restaturants.
Sonic President Scott McClain:
Well, one of the things that we are doing in April is we are introducing a new product, a new premium chicken product, a chicken bacon club sandwich on whole wheat bread, which is a premium product, which will be featured very prominently on-lot, as well as on television, and many markets and on national cable as well.
Sonic’s value menu, which features several $1 items, has been successful, executives said. Many customers who visit the drive-ins during their afternoon “happy hour” to purchase half-price drinks have been adding the cheaper food items to their orders, Chief Executive Officer Clifford Hudson said.
Meanwhile, Chief Financial Officer Stephen Vaughan, responding to a question about whether advertising rates have fallen due to the economy, noted that the company has been able to place its TV ads in more attractive spots:
…we’re able to get more prime spots. In some cases, for example, we were able to get some local spots with the Super Bowl. And also I think with the Academy Awards, some spots came available with some of those more prime shows that previously we hadn’t been able to get access to. So I think in terms of the dollars may not be increasing, but we do believe they are going further in terms of their reach, but also the quality of the buys that we’re are getting.
Speaking of advertising, here’s a little something from the 2 Sonic guys.
Don Mecoy
Business Writer
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