Updated: Thursday, 21 Feb 2013, 9:31 AM EST
Published : Thursday, 21 Feb 2013, 9:31 AM EST
PLEASANTON, Calif. (AP) — Grocery store operator Safeway's net income jumped 13 percent in the fourth quarter helped by higher gift and prepaid card revenue and a legal settlement.
Shares rose 5 percent in premarket trading on the better-than-expected results.
The Pleasanton, Calif.-based company, which operates Safeway and other grocery chains, says its customer loyalty program, "Just for U," is driving market share gains and profits.
Net income rose 13 percent to $244 million, or $1.02 per share. Excluding a benefit from a legal settlement, it earned 94 cents per share. Analysts expected 76 cents per share.
A 26 percent decline in the number of Safeway shares helped make the value of each remaining share higher.
Revenue edged up 1 percent to $13.77 billion from $13.6 billion last year. Analysts expected $13.69 billion..
Ground rules for posting comments: No profanity or personal attacks. No racially charged comments. If it's not something you would say to someone's face, it's most likely inappropriate. Please comment on the subject of the story itself. If you do not follow these rules, we will remove your post. Repeat offenders will be banned from making future comments. Keep it civil, folks! WANE is not responsible for the content posted in this comment section.