Officials at locally based IHOP, speaking yesterday at the SG Cowen & Co.'s Consumer Conference in New York City, attributed their success, in part, to a change in their business model that began in early 2003. At that time, IHOP officials decided to no longer develop new company-owned stores and instead franchise a majority of its units. Out of its 1,184 units, the company owns 20, down from 76 at the end of 2002.

IHOP still plans to open about 60 units per year and eventually bring the chain to a total of 300 to 700 more stores. Also, the company intends to remodel all of its units over the next four years.

Eventually, IHOP plans to only have company-owned stores in Cincinnati, the only major market where, until recently, it did not have a major presence. The chain will also use that market, where it has the goal of opening 20 units, to open pilot concepts.