IHOP Profit Down 30% for 3rd Quarter

IHOP Corp. attributed a 30% drop in third-quarter profit to the franchising of fewer company-constructed restaurants and charges related to the shedding of IHOP-owned outlets.

Net income fell $7.7 million, or 38 cents a share, compared with $11 million, or 51 cents, a year earlier. Revenue fell 17% for the third quarter to $86.5 million. Sales at stores open at least a year climbed 5.3%.

Excluding charges of $3.1 million, the company would have earned $9.6 million, or 47 cents a share. On that basis, analysts had predicted that the Glendale-based dining chain would earn 42 cents a share.

IHOP shares rose 6 cents to $38.52 on the New York Stock Exchange.

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Julie Tamaki