LAKEWOOD Colo. Einstein Noah Restaurant Group Inc. more than tripled its first quarter profit, driven by strong sales and cost control measures, the bagel specialist reported.
Einstein Noah reported net income of $3.8 million, or 23 cents per share, for the first quarter ended April 1. That compares with a profit of $1.1 million, or 10 cents a share, in the year-ago period. First quarter revenue rose 7 percent, to $103.3 million, the company said.
Einstein Noah said its efforts to lock in wheat prices have helped mitigate the effect of rising commodities costs, which have hurt the bottom lines of many restaurants. Earlier this year, Einstein Noah said it entered into a purchasing contract that set wheat prices for the year, a move the company said would save it millions.
Company officials also credited a price hike, a revamped menu and increased sales for its strong first quarter results. Same-store sales at company-owned units increased 3.6 percent for the first quarter, marking the 14th consecutive quarter of positive comparable sales, the company said.
During the quarter, Einstein Noah opened three company units, four licensed stores and the first franchised Einstein Bros. Bagel restaurant.
Einstein Noah, based here, operates, licenses or franchises more than 600 units under the Einstein Bros. Bagels, Noah's New York Bagel, Manhattan Bagel and Chesapeake Bagel brands.
The company released its first quarter results after the market closed on Wednesday. In midday trading on Thursday, its stock rose almost 18 percent, to $12.97.