Ihop Corp. reported third quarter net income of $11.3 million (62 cents per share), a 6 percent dip from $12 million (62 cents) for the same period a year earlier. Analysts polled by Thomson Financial expected earnings of 58 cents on revenue of $91 million.
Sales for the Los Angeles-based restaurant chain operator dipped 4 percent to $88 million, largely due to a drop in financing revenue.
However, same-store sales grew 1.3 percent, helped by limited-time offers and lower pricing by franchisees. That prompted the company to raise its 2006 earnings forecast to between $2.35 and $2.40 per share from $2.25 to $2.35 per share, which puts them in line with analysts’ expectations of $2.37.
Shares in Ihop were up 19 cents to $52.01 in early trading Wednesday.