NEW YORK ( TheStreet) -- Fast food purveyor Bojangles (BOJA) didn't disappoint with its first quarterly earnings report, beating Wall Street's estimates. Restaurant sales for the chicken and biscuits chain were up 7.9%, the twentieth consecutive quarter of restaurant growth.
The company posted higher than expected profits of $0.17 per share. Revenue also beat estimates, coming in at $114.6 million, up from last year's $96.2 million. The company has opened 16 new restaurant locations across the U.S., however, it was hit with around $2.7 million of IPO related costs, which pushed full year guidance below some analyst predictions.
The Southern-themed restaurant has seen its stock price increase around 35% since its May IPO.
"We are delighted to have begun fiscal year 2015 with impressive growth in total revenues, adjusted EBITDA and adjusted net income for the first fiscal quarter," President and CEO Clifton Rutledge told investors. "The 7.9% increase in system-wide comparable restaurant sales during the first fiscal quarter continues to demonstrate the broad appeal of our iconic brand." Rutledge added that the brand is working hard to keep customers coming in, focusing on service and food quality.
Bojangles expects full year revenues to be between $480 million and $487 million. The company will also be opening 28 to 32 new restaurant locations, which could mean increased costs and a potential strain to profit margins. The 'Famous Chicken n' biscuits' franchise saw operating expenses increase to $93.6 million from $78.4 million last year. The chain also has hot competition for market share from competitors like Popeyes Louisiana Kitchen (PLKI), Chipotle (CMG) and El Pollo Loco (LOCO). Bojangles sold 8.9 million shares at $19 per share during its IPO. The stock spiked during the first trading day following in the footsteps of other fast-casual restaurant chains such as Shakeshack (SHAK).