IHOP Corp. Highlights 2006 Sales and Development Milestones

IHOP Corp. (NYSE:IHP - News) announced key sales and development metrics for fiscal 2006:

• Same-Store Sales Growth Continues: IHOP produced its 16th consecutive quarter of positive same store sales growth since changing its business model in 2003 to focus on providing improved marketing and operational leadership for its 99% franchised system. For the twelve months ended December 31, 2006, system-wide same-store sales increased 2.5%, which consisted of healthy increases in guest traffic that significantly outpaced moderate increases in guest check average. Compared to an exceptionally strong 5.4% growth in the same quarter last year, system-wide same-store sales increased 0.4% for the quarter ended December 31, 2006. This growth consisted entirely of increases in guest traffic that offset flat guest check average results. Same-store sales growth for the fourth quarter 2006 was supported by the solid performance of limited-time offers French Toast Fantasy and Super Rooty Tooty Fresh 'N Fruity, the introduction of an enhanced system-wide menu as well as the further optimization of gift card sales during the holiday season.

• IHOP Becomes a $2 Billion Brand: As of the end of fiscal 2006, system- wide sales generated by the operation of 1,132 franchisee-operated IHOP restaurants, 160 area licensee-operated IHOP restaurants and 10 Company- operated IHOP restaurants now exceed $2 billion. This represents the first time IHOP's system-wide sales have surpassed the $2 billion mark in the Company's 48-year history. System-wide sales are retail sales at IHOP restaurants operated by franchisees, area licensees and the Company, as reported to the Company. Sales at restaurants that are owned by franchisees and area licensees are not attributable to the Company. System- wide sales are a non-GAAP financial measure, however the Company believes that this sales information is useful in analyzing IHOP's market share and growth, and because franchisees and area licensees pay royalties and contribute to the national advertising fund based on a percentage of their sales.

• Development Commitments Realized: During fiscal 2006, IHOP franchisees financed, developed and opened 57 new IHOP restaurants in 30 states, while the Company's area licensee opened eight new IHOP restaurants within the state of Florida, and IHOP opened four new restaurants in its Company market of Cincinnati, Ohio. This brings the total number of restaurants system-wide to 1,302 IHOPs in the U.S. and Canada. With hundreds of additional IHOP restaurants committed to be developed by franchisees over the next several years, IHOP believes its system could reach as many as 1,800 restaurants in the U.S. The Company also is pursuing incremental growth opportunities in Mexico and Canada.

Julia A. Stewart, IHOP's Chairman and Chief Executive Officer, said, "IHOP is a true American icon that continues to grow in size and strength year after year. Not only were we able to deliver upon our same-stores sales growth expectations for 2006, but franchisees also fulfilled their commitments to develop new IHOP restaurants within the timeframe and in the numbers we expected. Together, our sales and unit growth last year drove the IHOP brand over the $2 billion mark in system-wide sales, which is another impressive milestone. We are very pleased with these accomplishments in 2006 and look forward to an even better 2007."



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