IHOP’s Profits Slide 21% on Severance Costs

IHOP Corp., the Glendale-based pancake restaurant chain, reported that earnings for the first quarter ending March 31 were $1.78 million, down 21% from $2.26 million the first quarter a year ago. Revenues for the latest quarter were $33.18 million, up slightly from $32.76 million a year earlier.

The company attributed the decline in earnings to a one-time charge of $800,000 for severance payments. More than half that amount was a payment to former vice president of operations Anthony Feicco Jr., who resigned in February, according to a spokesman for the company.

A delay in the franchising of two operated restaurants also dampened earnings, IHOP said.