Franchisees Commit to Develop 20 New IHOP Restaurants
GLENDALE, Calif., Oct 23, 2006 (BUSINESS WIRE) -- IHOP Corp. (NYSE:IHP) today announced that it has secured additional Multi-Store and Single-Store Development Agreements during the third quarter 2006 for its franchisees to build an additional 20 new IHOP restaurants over the next eight years. These agreements provide for the development of new IHOP restaurants in the states of Georgia, Virginia and Washington, as well as for international development in Ontario, Canada and the U.S. Virgin Islands.
As of the end of the third quarter 2006, the Company's franchise pipeline included signed or optioned commitments for franchisees to develop a total of 388 new IHOP restaurants in the U.S., Mexico and Canada over the next 13 years, with options extending until 2019. Currently, IHOP is finalizing legal agreements for additional franchise development that could add up to 110 more IHOP restaurants to its development pipeline, which would bring total signed, optioned and pending commitments to as many as 498 restaurants in the U.S., Canada, U.S. Virgin Islands and Mexico.
The following are details of Multi-Store Development Agreements signed during the third quarter 2006:
-- John Khauv has agreed to develop five new IHOP restaurants over the next eight years within Pierce and King counties in the state of Washington. Mr. Khauv has been an IHOP franchisee for six years, and currently operates three IHOP restaurants in California and Washington.
-- Aysa Saadat has agreed to develop two new IHOP restaurants over the next three years within Skagit and Whatcom counties in the state of Washington. Mr. Saadat has been an IHOP franchisee for nine years, and currently operates one IHOP restaurant in Washington.
-- Pancakes Canada Limited controlled by the Alfieri Group has agreed to develop three new IHOP restaurants over the next five years in a portion of the region of Niagara, including Niagara Falls and the city of Barrie, Ontario, Canada. Pancakes Canada Limited is a franchisee new to the IHOP system. The Alfieri Group possesses more than 55 years of restaurant operations experience, with successful casual Italian themed, family restaurant operations in Niagara Falls, Ontario.
-- Allie Allison Petrus has agreed to develop two new IHOP restaurants over the next five years in the Island of St. Thomas, U.S. Virgin Islands. Mr. Petrus is a franchisee new to the IHOP system, and possesses more than 20 years of experience in the hospitality industry with an expertise in restaurant operations.
In addition to these Multi-Store agreements, IHOP signed two Single-Store Development Agreements during the third quarter 2006, which the Company expects its franchisees will open in the next 12 to 18 months in the states of Georgia and Virginia. The Company also amended existing franchise development agreements, adding another six new restaurant commitments to its development pipeline.
About IHOP Corp.
The IHOP family restaurant chain has been serving a wide variety of breakfast, lunch and dinner selections for more than 45 years. Offering 14 types of pancakes as well as omelettes, breakfast specialties, burgers, sandwiches, chicken and steaks, IHOP's diverse menu appeals to people of all ages. IHOP restaurants are franchised and operated by Glendale, California based IHOP Corp. As of September 30, 2006, the end of IHOP's third quarter, there were 1,278 IHOP restaurants in 49 states and Canada. IHOP Corp. common stock is listed and traded on the NYSE under the symbol "IHP." For more information, call the Company's headquarters at (818) 240-6055 or visit the Company's Web site located at www.ihop.com.
Forward-Looking Statements
There are forward-looking statements contained in this news release. They use such words as "may," "will," "expect," "believe," "anticipate," "plan," or other similar terminology. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: risks associated with the implementation of the Company's strategic growth plan, the availability of suitable locations and terms of the sites designated for development; the ability of franchise developers to fulfill their commitments to build new IHOP restaurants in the numbers and time frames covered by their development agreements; the ability of the Company to franchise its remaining Company-operated restaurants; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; conditions beyond the Company's control such as weather, natural disasters or acts of war or terrorism; availability and cost of materials and labor; cost and availability of capital; competition; continuing acceptance of the International House of Pancakes brand and concepts by guests and franchisees; the Company's overall marketing, operational and financial performance; economic and political conditions; adoption of new, or changes in, accounting policies and practices; and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. Forward-looking information is provided by IHOP pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.
SOURCE: IHOP Corp.
IHOP Corp. Stacy Roughan, Director, Investor Relations, 818-637-3632