IHOP Corp. Reports Same-Store Sales Increase of 4.5% for the Third Quarter 2005
IHOP Corp. (NYSE:IHP) today announced its system-wide same-store sales increased 4.5% for the quarter ended September 30, 2005. For the nine months ended September 30, 2005, system-wide same-store sales increased 2.1%.
Julia A. Stewart, IHOP's President and Chief Executive Officer, said, "Our sales results for the third quarter 2005 represent IHOP's 11th consecutive quarter of positive same-store sales growth. Our results primarily reflect exceptional guest response to our limited time promotion, Funnel Cake Carnival, during the months of July and August, as well as the strong performance of our current promotion, French Toast Festival, in the month of September. Both promotions effectively leveraged IHOP's core brand equities around breakfast, and offered strong consumer appeal that motivated guests to visit IHOP restaurants. We also are encouraged by strong guest acceptance of our enhanced core menu as well as their positive response to our new restaurant remodel package, both of which work to build IHOP's credibility at all dayparts.
"Additionally, guest traffic trends returned to positive levels during the third quarter 2005, showing significant improvement from negative traffic levels experienced in the first half of the year. We attribute this reversal primarily to the strong appeal of our breakfast promotions during the quarter, coupled with menu pricing moderation exercised at our more than 1,200 franchise restaurants nationwide. Pricing moderation is a particularly important factor as we strive to maintain IHOP's value relationship with our guests," said Stewart.
IHOP Corp. will release full third quarter 2005 financial results on Thursday, October 27, 2005 before the market opens. The Company will host an investor conference call to discuss its third quarter 2005 results on Thursday, October 27, 2005 at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time).
"Additionally, guest traffic trends returned to positive levels during the third quarter 2005, showing significant improvement from negative traffic levels experienced in the first half of the year. We attribute this reversal primarily to the strong appeal of our breakfast promotions during the quarter, coupled with menu pricing moderation exercised at our more than 1,200 franchise restaurants nationwide. Pricing moderation is a particularly important factor as we strive to maintain IHOP's value relationship with our guests," said Stewart.
IHOP Corp. will release full third quarter 2005 financial results on Thursday, October 27, 2005 before the market opens. The Company will host an investor conference call to discuss its third quarter 2005 results on Thursday, October 27, 2005 at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time).