IHOP Plans Expansion, Applebee's Buy

GLENDALE, CA-IHOP plans to continue its growth through expansion on two fronts, according to company financial results for the third quarter ended Sept. 30, which the chain released Tuesday. Management said it was pleased with its third-quarter financial results, even though they produced a net loss, because the loss was primarily the result of a non-cash charge associated with IHOP’s pending $2.3-billion acquisition of Applebee’s.

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.