Franchise Openings Boost Earnings

0

Shares in IHOP Corp. were up 5 percent Thursday after the restaurant chain owner reported higher fourth-quarter earnings, helped by franchise openings.


The restaurant chain reported fourth quarter net income after the market closed Wednesday of $10.3 million, (57 cents per share), a 3 percent increase from $10 million, (53 cents), for the same period a year earlier. That beat analysts’ expectations of 55 cents, according to Thompson Financial. Sales for the Glendale-based chain were flat at $88 million.


The company lowered its forecast for 2007 earnings to between $2.50 and $2.60 a share citing increased expenses associated with corporate refinancing. However, IHOP expects same-store sales growth of 2 percent to 4 percent and expects to add as many as 66 restaurants this year.

Wall Street analysts had expected earnings of $2.69 a share for 2007.


Shares in IHOP were up $2.90 to $58.17 in afternoon trading Thursday.

No posts to display