Dine Brands Sets Foot In Pakistan To Open 19 IHOP Restaurants
Zacks Investment Research | Mar 19, 2019 03:31AM ET
Dine Brands Global Inc. (NYSE:DIN) has inked a deal with a leading logistics, and Food and Beverage joint, Gerry’s Group, to launch its International House of Pancakes (“IHOP”) brand in Pakistan.
Per the deal, the company will open 19 IHOP restaurants all over the country over the next nine years. The first restaurant is likely to be opened in Karachi by the end of 2019. Moreover, out of these 19 locations, nine will be franchised by Gerry’s Group itself and rest of them will be sub-franchised.
Founded in 1958, IHOP has a global presence since 1969 and has its franchisee in Asia-Pacific, Latin America, Canada and the Middle East. Additionally, it has plans to open new locations in South America by 2019, specifically in Peru and Ecuador. The company also plans to open franchisee in the United Kingdom.
Solid Brand Presence to Drive Growth
Dine Brands, a Glendale, CA-based restaurants franchisee company, has 1,831 IHOP franchised and area licensed restaurants along with 1,768 Applebee’s franchised restaurants, as of Dec 31, 2018. The company keeps on introducing locations in order to expand its global presence, thereby adding to its growth strategy.
We believe the deal will boost sales of IHOP restaurants. IHOP restaurant sales in 2018 increased 4.4% from the year-ago period. Also, its domestic system-wide comparable same-restaurant sales grew 1.5% in the same period. The company expects comps at IHOP to rise 2-4% and expects to open 35-55 IHOP restaurants globally in 2019.
Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 32.3% in the past year, broadly outperforming the Zacks Investment Research
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