Pancake-house operator IHOP Corp., which is acquiring casual-dining chain Applebee's International Inc., said Wednesday that its second-quarter earnings rose 37%, helped by franchise restaurant openings, growth in same-store sales and cost controls.
Net income for the quarter rose to $14.1 million, or 82 cents a share, from $10.3 million, or 56 cents, a year earlier.
Analysts surveyed by Thomson Financial had expected profit of 59 cents a share.
Revenue climbed to $89.5 million from $85.1 million a year earlier, above the $87.3 million analysts had projected.
The company said it was paying a dividend of 25 cents a share.
Shares of Glendale-based IHOP gained $1.10, or almost 1.7%, to $66.12 on Wednesday.
Julia A. Stewart, IHOP's chairwoman and chief executive, said the company continued to drive sales by opening 15 franchise restaurants, increasing same-store sales and moderating expenses. She said the pending Applebee's acquisition would not be a serious distraction.
For the three months ended June 30, sales at stores open for at least a year increased 2.5% as higher average customer checks offset lower dining-room traffic. The company said it was continuing to battle a sluggish restaurant market, brought about by higher fuel prices and changing consumer behavior as well as increased competition for breakfast customers.