Same-store sales at IHOP rose 6.2 percent year over year in the quarter ended June 30—the largest sales increase the brand has seen in more than a decade, IHOP’s parent company DineEquity said Wednesday. When taken on a two-year basis, the concept’s comp sales have risen more than 9 percent, company executives said.
Based on these results, DineEquity has revised its expectations for IHOP for the rest of the fiscal year, projecting comp sales at the 1,651-unit chain will increase between 4 and 6 percent by year’s end.
“I’m very excited about the success that we, as our franchisees, are together driving,” said Julia Stewart, CEO of DineEquity, during an earnings call Wednesday. “We saw continued strong momentum in the second quarter, posting stellar results to cap off IHOP’s ninth consecutive quarter of positive comp sales.”
Key drivers of IHOP’s comp-sales growth were the chain’s new “Summer Stacks” pancakes offerings and the return of its popular brioche French toast line, Stewart said.
During Q2, IHOP also launched redesign efforts, introducing an updated menu that highlights fresher offerings and debuting a new logo for the first time in two decades. The updated logo features the ‘O’ and ‘P’ in the chain’s name as part of a prominent smile, showcasing the concept’s dedication to delivering great memories as well as great food, IHOP executives said in June.
“We’re pleased with the guest-positive reaction to the new design,” Stewart said.
IHOP’s sister brand, Applebee’s, saw more modest comp-sales gains during Q2, to the tune of 1 percent. When possible, learnings gleaned from IHOP’s recent successes will be applied to Applebee’s as the casual-dining chain looks to build guest loyalty, Stewart noted.
Glendale, Calif.-based DineEquity reported revenues of $171.5 million during Q2, up from $160.5 million during the same period last year.
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