IHOP’s Same-Store Sales Increase

IHOP Corp. announced its system-wide same-store sales increased 2 percent for the third quarter ended Sept. 30. For the first nine months of fiscal 2007, system-wide same-store sales increased by 1.8 percent. “Our same-store sales performance of 2 percent for the third quarter 2007 represents our 19th consecutive quarter of growth amid an increasingly competitive and challenging economic environment,” said Julia A. Stewart, IHOP’s Chairman and Chief Executive Officer. “Our performance was supported by the introduction of new and appealing limited-time offers and the positive impact of our improved media buying strategy.” During the third quarter, IHOP experienced a rise in guest check average due to the cumulative effect of menu price increases taken in 2006, while guest traffic declined, Stewart said. “For the balance of 2007, we expect sales comparisons to continue to improve as we remain on the path to meet our same-store sales growth expectations of 2 percent to 4 percent for the full year,” Stewart said. “Our outlook primarily takes into account the expected introduction of new limited-time offers in the fourth quarter 2007, a continuation of our strong media presence, a planned system-wide menu update, and the building momentum around gift card sales and our carryout program IHOP’n Go.”