Net Lease Advisory Tenant IHOP


  • Leases call for increases, although amount and frequency vary
  • Generally decent sized parcel of land (prefer 0.7 to 1.6 acres)
  • Concept has been revitalized of late, creating a lot of new construction or complete remodels


  • Many sites are franchisee locations, with operator strength varying significantly
  • Restaurant industry has seen volatility in performance and sales lately

Earnings Highlights

Earnings Summary
  • IHOP’s reported system-wide sales for Q1 2019 increased 2.4% to $873.1 M compared to $852.9 M for the Q1 2018
  • IHOP’s comparable same-restaurant sales increased 1.2% for Q1 2019, achieving the fifth consecutive quarter of sales growth

Tenant Description

IHOP, formerly known as The International House of Pancakes, is a United States based restaurant chain that specializes in breakfast foods.

The majority of IHOP restaurants are operated by franchisees requiring investors to look carefully at each locations sales and guarantors strength. There is great net lease appeal in the IHOP locations. The prototypical IHOP is a 4,500 square foot building on 1 acre of land. These locations can be easily converted into another casual dining location if IHOP were to vacate.

IHOP is franchised and operated by Glendale, California based International House of Pancakes, LLC and its affiliates. International House of Pancakes, LLC is a wholly-owned subsidiary of DineEquity, Inc. DineEquity also owns the Applebee's concept. As of December 31, 2017, all of IHOP's 1,786 restaurants were operated by franchisees. While IHOP's focus is on breakfast foods such as pancakes, French toast and omelettes, it also offers a menu of lunch and dinner items.

Average Cap Rate
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,596,800
NOI $160,482
$/Square Foot $475 - $600
Building SF 4,000 - 5,000
Lot Size 0.7 - 1.6 Acres
Lease Term 20 - 25 Years
Escalations Varies
Stock Symbol DIN
Credit Rating
Moody's N/A
Average Cap Rate Trend
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Douglasville, GA 6.70%
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Deland, FL 5.45%