For the first time in the locally-based chain's 48-year history, total sales surpassed $2 billion in a one-year period. But since well over 90% of IHOP's restaurants are operated byu franchisees and licensees, that figure does not contribute to overall company revenues.

Also in 2006, the company opened 69 restaurants, 57 of them franchisee-operated, eight run by licensees and four company-owned in its Cincinnati test market. Based on current franchisee agreements, management predicts that 1,300-unit chain could eventually hit a total of 1,800 US stores. Executives are also exploring opportunities in Canada and Mexico.

IHOP's management predicts that last year's earnings per share will come in between $2.35 and $2.40. It will release the company's full-year results, as well as guidance for 2007 on Feb. 21.