The purchase of restaurant chain Applebee’s contributed to a net loss for IHOP Corp. in its fourth quarter. The Glendale-based company incurred a $16.1 million expense connected with swapping interest rates as part of the $2 billion financing for Applebee’s International, Inc. in November. For the fourth quarter, the Glendale-based company reported a net loss of $14.3 million, or a loss of $0.94 per diluted share, on revenues of $213.6 million. For the same period in 2006, the company reported net income of $10.3 million, or $0.57 per diluted share, on revenues of $87.9 million. For the full fiscal year, the company had a net loss of $480,000, or a loss of $0.13 per diluted share, on revenues of $484.6 million. For 2006, the company had net income of $44.5 million, or $2.43 per diluted share, on revenues of $349.6 million. Julia A. Stewart, IHOP’s chairman and chief executive officer, stated that 2007 was a year of significant accomplishments for the company. The acquisition of Applebee’s represents an opportunity to create significant long-term value for IHOP shareholders, she said. “In addition, our proven financial formula for success within the IHOP business unit,driving top line sales through new franchise restaurant openings and same-store sales growth while moderating G & A; expenses,was evident once again,” Stewart said. “We will look to achieve this same level of consistent performance with the Applebee’s business as we work to re-energize the brand and transition it, over time, to a more highly franchised model.”
