Los Angeles, Apr. 29 - Sandwich shop Panera Bread Co posted lower first quarter net income Tuesday, but earnings excluding items beat analysts' expectations.
Panera also said it raised its earnings forecast for the second quarter. Its shares rose nearly 6 percent in after-hours trading.
The company said its first-quarter net income fell to $12.4 million, or 41 cents per share, from its year-earlier net income of $15.0 million, or 47 cents per share.
Results from the most recent quarter included a 6 cent per share charge related to the company's decision not to develop certain restaurant sites.
All-in wheat costs were about $13 per bushel during the first quarter of 2008, compared with $5.80 per bushel the year earlier.
Panera's profit excluding items was 47 cents per share for the quarter and topped analysts average target of 39 cents, according to Reuters Estimates.
Total revenue rose 27 percent to $305.0 million from $239.7 million.
Sales at company-owned bakery-cafe open at least 18 months were up 3.3 percent in the first quarter while same-store sales at franchise-operated outlets rose 1.7 percent.
The company said the removing its Crispani pizzas from the menu, cost controls and other efforts helped to "significantly" improve margins during the quarter.
As a result, Panera raised and narrowed its second-quarter earnings per share target.
Panera said it increased and narrowed its earnings per share diluted target for the second quarter from a range of 37 cents to 43 cents, to a range of 40 cents to 44 cents a share, including expenses.
According to Reuters Estimates, Panera's second-quarter profit forecast of 44 cents to 48 cents per share, excluding the items, tops Wall Street's average view of 39 cents.
The company's full-year earnings target range of $2.00 to $2.11 per share is above Wall Street's average estimate of $2.02, Reuters Estimates said.
The company on Wednesday morning will discuss the results in a conference call with analysts.
Shares in Panera closed down 20 cents to $45.42, but jumped to $48 in extended trade.