IHOP reports 37 percent jump in 2nd quarter earnings
IHOP posts 37 percent rise in second-quarter earnings on sales growth
GLENDALE, Calif. (AP)— Pancake house operator IHOP Corp., which is acquiring casual dining chain Applebee’s International, said Wednesday its second-quarter profit rose 37 percent, helped by new franchise restaurant openings, same-store sales growth and cost controls.
Net income for the quarter ended June 30 rose to $14.1 million, or 82 cents per share, from $10.3 million, or 56 cents per share, a year ago.
Analysts surveyed by Thomson Financial were looking for profit of just 59 cents per share.
Revenue climbed to $89.5 million from $85.1 million last year, above the $87.3 million analysts projected.
In early trading, IHOP shares rose 95 cents to $65.97.
Chairman and Chief Executive Julia A. Stewart said the company drove topline sales through new franchise restaurant openings and same-store sales growth, while moderating general and administrative expenses and continuing share repurchases.
For the three months ended June 30, systemwide same-store sales increased 2.5 percent, reflecting solid growth despite a continuing difficult consumer environment and increased competition for breakfast customers, the company said.
IHOP said it remains comfortable with existing guidance for 2007 as it relates to its IHOP business, but is suspending its fiscal 2007 profit outlook as current guidance doesn’t account for the effect of the Applebee’s acquisition on results.