LAKEWOOD, Colo. (
) -- Shares of
Einstein Noah Restaurant Group
jumped 5.7% in pre-market trading Friday despite the bagel store operator's weaker-than-expected profits.
Einstein Noah Restaurant Group said late Thursday its second quarter earnings decreased 49.2% to $3.3 million as competition in the fast-casual breakfast market heated up.
A roster of quick-serve food chains have been expanding their breakfast menu offerings recently. Burger chain
Jack in the Box
last quarter with a grilled sandwich. It also introduced a new blend of coffee, likely in an effort to compete with
. Jack in the Box also said its breakfast menu accounted for nearly 20% of its $523.3 million in fiscal-third quarter sales.
Einstein, which operates Einstein Bros Bagels, Noah's New York Bagels, and Manhattan Bagel brand stores, said comparable same-store sales, or sales at stores open at least one year, fell 1.1% in the recent quarter.
Revenue edged 0.9% lower to $103.5 million. Excluding one-time items, adjusted profits were $3.1 million, or 19 cents per share, missing Wall Street expectations for profits of 19 cents per share. Analysts typically exclude one-time items when forecasting earnings estimates.
Einstein Noah Restaurant Group said it expects to open as many as 12 new company-owned restaurants in 2010, between 12 and 17 new franchise restaurants, and between 35 and 45 license restaurants.
-- Reported by Miriam Marcus Reimer from New York.
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