Pleasanton, Calif., Safeway Inc. said Thursday its third-quarter profit jumped 12% due to cost reductions and strong performance from its newly remodeled stores.
For the quarter ended Sept. 8, net income rose to $194.6 million from $173.5 million in the prior-year quarter. The results matched Wall Street analysts' expectations, according to a poll by Thomson Financial.
Revenue rose 4% to $9.78 billion from $9.42 billion in the third quarter of 2006. Analysts had predicted higher revenue of $9.83 million for the quarter.
Safeway said its lifestyle stores, which focus on fresh produce and deli items and offer more upscale products, helped boost revenue. The chain said efforts to reduce costs also contributed to the profit increase.