Bojangles’ Inc. reported a 25 percent increase in its fourth-quarter income on Tuesday, beating analyst expectations with a solid increase in comparable restaurant sales.
The Charlotte-based regional chain of restaurants reported net income of $9.8 million, or 28 cents per share, up from net income of $7.8 million, or 22 cents per share, in the same quarter a year ago, according to a filing with the Securities and Exchange Commission.
The results beat analyst estimates of 21 cents per share.
“We are pleased the Bojangles’ system has now achieved 27 consecutive quarters of comparable restaurant sales growth through the fourth fiscal quarter of 2016,” said Bojangles’ Chief Executive Clifton Rutledge. “We will continue developing restaurants in core and adjacent markets through our company-operated and franchised model, with our long-term goal of franchising leading our expansion efforts over time.”
Comparable restaurant sales increased 2.4 percent, and the company also reported that it added 21 new restaurants in the fourth quarter.
Total revenue increased 8.3 percent to $139.4 million, compared to $128.8 million in the same period one year ago. The revenue figure fell on the lower end of analyst expectations, which averaged $140.4 million for the quarter.
The fast food chain also issued below-expectations earnings guidance for 2017. Bojangles’ said it expects total 2017 revenue of $560.0 million to $569.0 million, solidly lower than analyst expectations of $589.0 million.
As of early Tuesday evening, shares of Bojangles’ stock have slipped 5.0 percent in after-hours trading; they closed down 2.0 percent on Tuesday to $19.75.
Bojangles’, which went public in May 2015 at $19 per share, said it expects between 57 and 62 new restaurant openings in 2017, but it also said it expects the net increase in restaurants to fall between 49 and 54 restaurants for the year.
Founded in Charlotte in 1977, Bojangles’ has a total of 716 system-wide locations, more than 400 of which are franchised restaurants.
The filing can be found here.
