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Dine Brands' (DIN) IHOP Debuts in Peru, Expansion on Track

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Dine Brands Global Inc.’s (DIN - Free Report) International House of Pancakes (IHOP) brand continues to expand through franchisee agreements. Recently, the company announced the opening of its first IHOP restaurant in Lima, Peru, through an agreement with Percapitals S.A.C. Markedly, this new property in Peru marks the company’s 62nd restaurant in the Latin America region.

Steve Joyce, CEO and president, International, Dine Brands, stated that "South America is an important growth market for Dine Brands and we’ve seen great success there so far this year."

Dine Brands on Expansion Spree

Dine Brands continues to expand its presence globally. Earlier this year, IHOP debuted in South America with the opening of three restaurants in Ecuador. Of late, the IHOP brand announced that it plans to open a fresh fast casual concept — Flip’d by IHOP — in the United States during the spring of 2020. Notably, the brand anticipates to launch its first Flip’d in Atlanta next April.

Currently, there are more than 1,700 IHOP restaurants in the United States and another 100+ IHOP restaurants worldwide. Moving ahead, the company aims to develop nearly 100 IHOP restaurants with TravelCenters of America, headquartered in Westlake, OH.

Meanwhile, Dine Brands International continues to focus on growth in markets including Central America, Colombia and Chile. By 2028, it anticipates to open 25 IHOP restaurants in Peru.

We believe that the latest launch will boost IHOP restaurants’ sales. During third-quarter 2019, IHOP comparable same-restaurant sales grew 0.03%, marking its seventh consecutive quarter of positive sales growth. Also, IHOP restaurants’ system-wide sales for the third quarter rose 1.2% year over year to $845 million. The company expects comps at IHOP to be 1-2%. On the international front, Dine Brands expects to open 10-20 IHOP net new restaurants.

Year to date, shares of this Zacks Rank #3 (Hold) company have gained 21% compared with the industry’s 20.7% rally.

Key Picks

Some better-ranked stocks in the same space include Chuy's Holdings, Inc. , Chipotle Mexican Grill, Inc. (CMG - Free Report) and Dunkin' Brands Group, Inc. . While Chuy’s sports a Zacks Rank #1 (Strong Buy), Chipotle and Dunkin’ carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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