IHOP CORP. OUTLINES EXPANSION PROGRAM
IHOP CORP. OUTLINES EXPANSION PROGRAM BALTIMORE, Md., Nov. 11 /PRNewswire/ -- IHOP Corp.
(NASDAQ: IHOP) announced today that it has outlined its plans for future expansion. Speaking to financial analysts here at a seminar sponsored by Alex Brown & Co, Richard K. Herzer, chairman and chief executive officer, said IHOP expects to build its chain to 620 restaurants in the next five years, an increase of nearly 25 percent. These plans include the opening of approximately 165 restaurants, net of closures of about 45 restaurants.
"We also will be remodeling our existing restaurants," Herzer said. "Seventy-one restaurants were remodeled this year and sales in these units increased following this renovation. Our plans are to continue this remodeling program, with our objective being that each restaurant will be remodeled every five years." IHOP's recent public offering, he said, freed cash flow, which had previously been used for debt service, for this expansion and remodeling program. "Sales in IHOP's existing units increased 4.6 percent in September and 5.7 percent in October, system-wide sales have increased 7 percent year-to-date. We have now completed 108 consecutive months (9 full years) of sales increases, even in today's uncertain economic climate," Herzer stated. "Our growth plan is ambitious and we will be building on a very successful base. The IHOP concept has survived and prospered for nearly 35 years and has been proven nationally and internationally, downtown and in the suburbs, in good times and in recessions. We are a national brand as recent consumer surveys show that 80 percent of Americans recognize International House Of Pancakes," he said. IHOP Corp. develops, franchises and operates International House of Pancakes Restaurants, one of America's best-known family restaurant chains. IHOP's 499 restaurants are located in 36 states, Canada and Japan, with the greatest concentration of restaurants in Southern California, New York/New Jersey, Florida and Texas. -0- 11/11/91 /CONTACT: Frederick G. Silny, vice president, finance of IHOP Corp., 818-240-6055; or Richard Brodrick of Hill and Knowlton, Inc. ,213-937-7460, for IHOP/ (IHOP) CO: IHOP Corp. ST: California IN: SU: SE -- LA011 -- 2866 11/11/91 08:15 EST
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|Date:||Nov 11, 1991|
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