IHOP Tenant Overview

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

Tenant Description

IHOP, formerly known as The International House of Pancakes, is a United States based restaurant chain that specializes in breakfast foods, but also offers a menu of lunch and dinner items.

100% of IHOP restaurants are operated by franchisees, requiring investors to look carefully at each location’s sales and guarantor’s strength. There is great net lease appeal in 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 June 30, 2020, all of IHOP's 1,823 restaurants were operated by franchisees. As of that same date, IHOP’s international locations included Bahrain, Canada, Guatemala, India, Kuwait, Mexico, Panama, Qatar, Saudi Arabia, Thailand and the United Arab Emirates.

Dine Brands Global, the parent company of IHOP and Applebee's, is considering the introduction of co-branded restaurants in the US market, following the success of similar concepts in international locations. These dual-branded restaurants, which share back-of-house operations and have the potential to blend the dining experiences of both brands, have already been implemented in eight locations outside the US, with the latest opening in Leon, Mexico. The concept aims to maximize efficiency by leveraging the complementary dayparts of IHOP and Applebee's, with IHOP catering to breakfast and Applebee's to dinner. The shared operations have shown to generate twice as much revenue as traditional standalone restaurants of the same size, indicating a successful model that addresses all four dayparts effectively. This strategy is part of Dine Brands' broader development plans, which include aggressive growth for IHOP and a return to growth for Applebee's through new prototypes and conversions

Dine Brands Global (NYSE: DIN) is one of the world’s largest full-service dining companies and franchisor of Applebee’s Grill + Bar and IHOP, two of America’s most iconic and enduring brands. With over 3,570 locations in 17 countries, DINE empowers, supports and grows the world’s most-loved restaurant brands because we believe community happens when people eat together.

Average Cap Rate
Trailing 12-month average
Average Property & Lease
Average Sale Price $2,346,000
NOI $144,474
$/Square Foot $486 - $608
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 year-over-year comparison
Recent Sales Comps
Cleburne, TX 5.75%
North Kansas City, MO 6.23%
Pittsburgh, PA 7.03%