Glendale, Calif. — IHOP Corp. announced results for its third quarter ended Sept. 30, 2001. CEO Richard K. Herzer said IHOP is pleased with its progress but cautious due to "uncertain times."

The Glendale-based company reported net income of $11.1 million or diluted earnings per share of $0.53 in the third quarter of 2001 compared with net income of $10.1 million or diluted earnings per share of $0.50 in the third quarter of 2000 — an increase of 9.9% in net income and 6.0% in diluted earnings per share.

Since the tragic events of Sept. 11, 2001, IHOP has experienced some decline in retail sales. During the six weeks subsequent to Sept. 11, 2001, comparative sales are approximately 2% below the prior year. Results for the full year 2001, are still expected to fall within the company’s previous guidance of $1.90 to $2.02 diluted earnings per share.

For the nine months ended Sept. 30, net income was $28.7 million or diluted earnings per share of $1.39 in 2001 compared with net income of $25.6 million or diluted earnings per share of $1.27 in 2000 — an increase of 12.2% in net income and 9.4% in diluted earnings per share.

In the third quarter 2001 total revenues were $81.1 million, an increase of 3.1% over the third quarter 2000. For the nine months ended Sept. 30, total revenues were $234.0 million, an increase of 7.7% over the same period in 2000.

System-wide comparable store sales decreased 0.4% for the quarter and increased 0.5% for the nine months ended Sept. 30, 2001.

In the third quarter 2001, IHOP franchised 19 restaurants compared to 27 in the third quarter 2000. For the nine months ended Sept. 30, 2001, IHOP franchised 55 restaurants, which equaled the 55 in the same period in 2000.

System-wide sales increased 6.5% in the quarter and 8.1% in the nine months ended Sept. 30, 2001 over the same periods in 2000. The sales increase is primarily the result of growth in the number of effective restaurants and increases in average per unit sales, IHOP reported.

Effective restaurants grew by 4.1% in the third quarter and by 5.5% for the nine months ended Sept. 30, 2001 over the same periods in 2000. Average sales per effective restaurant increased 2.3% in the third quarter and increased 2.6% for the nine months ended Sept. 30, 2001 over the same periods in 2000.

As of Sept. 30, 2001, there were 982 IHOP restaurants in the chain, 789 operated by franchisees, 123 operated by area licensees and 70 operated by IHOP.