IHOP Corp. Profits Fall 22% in 2nd Quarter

IHOP Corp., the Glendale-based operator and franchiser of International House of Pancakes restaurants, said a one-time charge of $2.5 million for legal fees resulted in a 22% drop in earnings for the second quarter.

IHOP earned $1.37 million for the quarter that ended June 30, down from $1.75 million a year earlier. Yet the company’s quarterly revenue was up 32%, to $35.5 million from $26.8 million. IHOP opened 22 new restaurants in the second quarter.

For the six months that ended June 30, IHOP earned $2.81 million, up 3% from $2.72 million a year earlier. Its half-year sales were up 29%, to $65.7 million from $51.1 million. As of June 30, IHOP had 550 restaurants, of which 58 are owned by the company and the rest by franchisees and licensees. Systemwide, the company said its same-store sales increased 5.2% for the second quarter, and 4.5% for the six months.