IHOP Profits Jump 44% in the 3rd Quarter

IHOP Corp. posted record third-quarter sales and net income as the Glendale-based chain of pancake houses continued to expand by opening 14 new restaurants.

The company’s profits jumped 44% in the three months ended Sept. 30, to $3.5 million from $2.4 million a year earlier.

Total revenue, which includes sales from company-owned restaurants and franchise fees, increased 31%, to $38.2 million from $29.2 million in the third quarter of 1992.

For the nine months, IHOP’s net income rose 22%, to $6.3 million from $5.1 million a year ago. Revenue increased to $103.9 million from $80.3 million.

Richard K. Herzer, IHOP’s chief executive, said the company’s expansion is “proceeding as planned and has resulted in continued improvements in IHOP’s operation performance, despite a lackluster economy.”

He noted that so far this year, IHOP has opened 46 new restaurants, compared with the 40 restaurants it added in 1992.

Comparable sales per restaurant for outlets open at least a year increased 4.1% during the latest quarter.