IHOP’s First-Quarter Net Income, Revenue Drop

0

IHOP Corp. said Thursday its net income and revenue decreased in the first quarter due to disappointing same-store sales growth of just 0.6 percent, which was not enough to offset increases in general and administrative spending throughout the quarter.


Glendale-based IHOP reported net income of $10.1 million (50 cents per diluted share) for the first quarter ended March 31, compared with $10.9 million (50 cents) for the like period a year earlier. Revenue decreased to $85.8 million from $91.9 million in the year-ago period.


Analysts had forecast earnings of 53 cents on revenue of $87.8 million.


While its total costs and expenses dropped to $69.5 million from $74.4 million in the year-ago period, IHOP’s general and administrative expenses rose to $15.6 million from $13.6 million the year before. Same-store sales growth decreased sharply to 0.6 percent from a more robust 6.8 percent in the first quarter of 2004.


For 2005, the company expects diluted net income per share in the range of $2.02 to $2.12. IHOP said its outlook is based on the expectation that it will see positive same-store sales growth of 2 percent to 4 percent in 2005, and the addition of 62 to 72 new restaurants to the IHOP system this year.

No posts to display