IHOP Chief Operating Officer Resigns; CEO to Assume Duties

IHOP Corp., which owns the International House of Pancakes restaurant chain, said Monday that Executive Vice President and Chief Operating Officer Dennis Leifheit resigned.

Reasons for Leifheit’s departure weren’t disclosed in a company statement. Leifheit had been with IHOP since 1995.

Chief Executive Richard Herzer will assume Leifheit’s responsibilities until a successor is named. Herzer and Chief Financial Officer Alan Unger didn’t return calls seeking comment.

The Glendale-based company has 965 restaurants, of which 774 are operated by franchisees. IHOP operates 70 and area licensees run 121.

IHOP last week hired Citigroup Inc.’s Salomon Smith Barney investment-banking unit to explore options and consider a suggestion by top shareholder Southeastern Asset Management Inc. to sell or refinance loans made to franchisees.

Southeastern said in a May filing with the Securities and Exchange Commission that IHOP should sell or refinance $287 million in loans made to franchisees. The money would free IHOP to focus on International House of Pancakes operations, Southeastern said in the filing.

Southeastern declined to comment on Leifheit’s departure, spokeswoman Lee Harper said.

IHOP hasn’t been very successful in boosting same-store sales, said Dennis Joe, an analyst with Sidoti & Co.

A promotion of meals other than breakfast hasn’t worked as well as the company wanted, said Joe, who rates the stock “neutral.”

Same-store sales fell 0.2% in the second quarter, and Leifheit’s resignation may have been related, Joe said.

IHOP shares fell 25 cents to close at $27.77 on the New York Stock Exchange. They have risen 28% this year.