IHOP Cuts Earnings Forecast for 2002

IHOP Corp. lowered its 2002 earnings estimate because of higher-than-expected costs related to consumer research programs, consulting fees and menu development.

The Glendale-based operator of the International House of Pancakes chain said it now expects to earn between $1.99 and $2.12 a share, versus earlier guidance of between $2.10 and $2.22.

“We’re not broken,” Chief Executive Julia A. Stewart said. “We’re taking a proactive approach in our efforts to take [the company] to the next level.”

International consulting firm Mars & Co. has been hired to help the company evaluate current businesses and develop a long-term growth strategy, Stewart said.

IHOP shares fell $1.89 to $30.50 on the NYSE.

Marc Ballon