IHOP Corp. Reports Same-Store Sales Increase of 0.9% for the Second Quarter 2005
IHOP Corp. (NYSE: IHP) today announced its system-wide same-store sales increased 0.9% for the quarter ended June 30, 2005. For the six months ended June 30, 2005, system-wide same-store sales increased 0.8%.
Julia A. Stewart, IHOP's President and Chief Executive Officer, said, "Our sales results for the second quarter 2005 represents IHOP's 10th consecutive quarter of positive same-store sales growth. Our results reflect the modest performance of our limited time promotion, Sourdough Cheese Grillers, which was strategically targeted to expand consumer awareness about IHOP's non-breakfast offerings. To further build IHOP's business beyond breakfast, we benefited from the system-wide roll out of an enhanced core menu during the second quarter. We will continue to leverage our core brand equity to selectively promote multi-daypart product offerings as we look to support increased sales over time.
"During the second quarter, guest traffic trends - while still negative - showed significant improvement in the last two months of the quarter. While our same-store sales gains have been modest during the first half of 2005, there are several sales catalysts lined up for the balance of the year, which gives us continued confidence in meeting our guidance of 2% to 4% same-store sales growth for fiscal 2005," Stewart said.
"During the second quarter, guest traffic trends - while still negative - showed significant improvement in the last two months of the quarter. While our same-store sales gains have been modest during the first half of 2005, there are several sales catalysts lined up for the balance of the year, which gives us continued confidence in meeting our guidance of 2% to 4% same-store sales growth for fiscal 2005," Stewart said.