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..
