IHOP’s Sales Up, Profit Hurt By Fees

0

Casual dinning chain operator IHOP Corp. reported a 10 percent dip in first quarter profit as financiing costs lowered its bottom line.

IHOP reported first quarter net income of $11 million (63 cents per share), down 10.3 percent from $13 million (68 cents) for the same period a year earlier, missing analysts’ predictions of 68 cents per share, according to a poll conducted by Thomson Financial. The company said it completed $200 million in securitized financing during the quarter, which decreased earnings by more than 7 cents per share.


Sales for the Glendale-based company climbed 2 percent to $90 million thanks to a 0.5 percent bump in same-store sales as well as increased prices for food, IHOP said.


The company also affirmed its annual outlook saying it still expects to earn between $2.50 to $2.60 per share for the year, with same-store sales expected to grow between 2 and 4 percent.


Shares of IHOP were up 14 cents to $59.89 in afternoon trading Wednesday on the New York Stock Exchange.

No posts to display