Restaurant openings boost IHOP earnings

Restaurant chain operator IHOP Corp. reported higher fourth-quarter earnings, helped by franchise restaurant openings.

The company forecast 2007 earnings of $2.50 to $2.60 a share, based on expected same-store sales growth of 2% to 4% and the addition of as many as 66 restaurants.

Fourth-quarter net income was $10.3 million, or 57 cents a share, compared with $10 million, or 53 cents, a year earlier, the company said.

Wall Street analysts on average had expected earnings of 55 cents a share before one-time items for the fourth quarter, according to Reuters Estimates. Analysts expect earnings of $2.69 a share for 2007.

IHOP said profit from franchise operations rose 3.8% in the quarter, with its franchisees and area licensees opening 24 new restaurants.

Shares of the Glendale company closed up 25 cents at $55.27.