IHOP Profit Soars 56 Percent

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IHOP Corp. on Thursday beat estimates as its third-quarter profit shot up 56 percent from a healthy increase in same-store sales. The Glendale-based pancake restaurant chain also raised its full-year outlook.


IHOP reported third-quarter net income of $12 million (62 cents per share), compared with $7.7 million (38 cents) for the like period a year earlier. Revenue rose 6 percent to $91.3 million. The upbeat results topped analysts’ estimates for third-quarter earnings of 49 cents per share on revenue of $87.28 million.


Overall sales at its restaurants open at least a year increased 4.5 percent, the company said.


The company said it now expects full-year earnings of $2.15 to $2.20 per share, up from previous guidance of $2.02 to $2.12 per share. Same-store sales growth is anticipated to be between 2 percent and 4 percent. The new outlook results from a drop in general and administrative expenses, as well as an increase in the company’s share repurchase program.


The average analyst estimate is for full-year profit of $2.13 per share.


Shares of IHOP rose 6.6 percent to $47.45 on Thursday.

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