IHOP

Lowest
Cap Rate

3.44%

Lowest cap rate over past 24 months

Average
Cap Rate

5.41%

12 mo avg with 5+ yr lease term

Overview

Once known as the International House of Pancakes, IHOP is a long-standing chain serving an assortment of pancakes & other American dishes. IHOP offers pancakes, crepes, waffles, eggs and a wide variety of breakfast and brunch dishes.

Average Property & Lease

Average Sale Price	$2,250,000 - $2,750,000
Average NOI	$125,000 - $165,000
Building SF	4,500 - 5,000
Lease Term	20 - 25 Years
Escalations	Varies
Stock Symbol	NYSE:DIN

CREDIT RATING

S&P	N/A
Moody's	N/A

TENANT DESCRIPTION

The International House of Pancakes, LLC started in Glendale, CA, and is still operates as a franchise. Although the parent company is known as DineEquity, Inc., nearly every ‘IHOP’ is run independently by franchisees.

In 2008, IHOP changed its name to DineEquity after the acquisition of Applebee’s restaurant chain, and expanding its conglomerate into a new phase of market growth. With over fifteen hundred properties throughout the United States, Washington D.C., as well as internationally, IHOP continues their sole focus on serving truly delicious breakfast and brunch selections. Everything from pancakes and specialty omelettes, to French toast and brunch selections can be found on their menus.

PROS

Larger size lots from 4/5 to 1 1/2 acres
Leasing rent increases are common, but not always standard
Reinvigoration of conceptual models, leading to upgrades

CONS

Volatile restaurant industry may see fluctuations in sales
Majority are franchisee, variable risk with operators

COMPANY QUICK STATS

Founded	1958
Headquarters	Glendale, California
Number of Locations	1,841
Revenue	$0.3496 B
Company Website	https://www.ihop.com
Key Principal	Steve Joyce