Ihop

[hrbatyfan]

First of all, let me say that I am not a speculator at all. However, I did find this article very interesting and perhaps worthy.

http://money.cnn.com/2006/11/15/smbusiness/IHOP.fortune/index.htm?postversion=2006111609

I personally can't stand IHOP, but at the same time literally everytime I go by there the place is packed. The weekends are especially nuts as expected. This is not to say a restaurant being full = a fiscally strong and undervalued or growing company, but it certainly doesn't hurt.

[Broken Arrow]

Re: Ihop

Ooh, I love IHOP. Yeah, I know... greasy spoon. Bad for you.

I probably missed it somewhere, but for the life of me, I can't seem to find where exactly does it spell out their new business model? Is it the part where they are buying back their own stocks at a premium, or is it the low overhead?

Also, a contrarian speculator would probably think about selling their stocks. The ideal stock is one that is cool but warming up, not sizzling hot. IHOP's stock sounds like sizzling hot. That and I wonder how IHOP as a restraunt franchise is different from the challenges presented in their Outback steakhouse article? Low overhead again?

Whatever it is, I agree that it certainly is interesting to read and think about these sort of things.

[vsjhoc]

Re: Ihop

I probably missed it somewhere, but for the life of me, I can't seem to find where exactly does it spell out their new business model?

I think it's the change in franchise model. IHOP now owns only the trademark, and licenses it to the franchisee. The franchisee buys the land, manages the business, etc. This is common in hotels -- for example, Marriott doesn't own hotels, it owns a brand.