In a conference call with investors, company officials said that the restaurant company expects to add 61 to 66 new franchise units to the IHOP system for this fiscal year. On the second expansion front, the company is proceeding with steps to complete its acquisition of Applebee's, whose shareholders are scheduled to vote on the deal on Oct. 30. IHOP expects to fund the acquisition through a securitization of Applebee's as well as additional debt expected to be raised from the existing IHOP securitization.

The company expects to close the transaction by Nov. 29, but its third-quarter earnings announcement on Tuesday noted that the recent weakening of the credit markets and, specifically, conditions in the asset-backed securities market "have become more challenging due to a reduction in the overall buyer universe and a widening of risk spreads.

While these conditions could potentially increase the difficulty of successfully placing the securitized notes, IHOP believes that it can successfully fund the acquisition through the planned securitizations. In the event it becomes necessary, IHOP has a commitment for bridge financing from Lehman Bros. to finance the transaction until the securitization can be completed.