IHOP Sees Net Decline

IHOP Corp. reported that its net income decreased 10.2 percent to $11.3 million or $0.63 per share in the first quarter ended March 31, on revenues of $90.1 million. The first quarter results compare with net income of $12.6 million or $0.68 per diluted share on revenues of $88.5 million in the first quarter of 2006. The Glendale-based restaurant company attributed the decrease in net income to costs associated with a $200 million securitized refinancing deal completed last month. IHOP officials said they still anticipate the restaurant company will earn $2.50 to $2.60 per share for the full 2007 fiscal year, somewhat lower than analyst expectations of $2.63 per share. The restaurant operator also reaffirmed its previous comparable store sales guidance, saying sales at stores open at least a year would increase between 2 percent and 4 percent.