Investing.com -- Shares in Bojangles Inc (O:BOJA) surged more than 6% in after-hours trading after the Southern fast-food chain raised its guidance on Wednesday, after beating expectations with its revenues and earnings over the third quarter.
For Bojangles' third quarter, which ended in late-September, the Charlotte-based company increased its total revenues by 12.7% to $124.3 million, as its system-wide comparable restaurant sales surged by 4.1%. In addition, Bojangles opened 18 system-wide restaurants during the 13-week period, including seven company-operated stores. As a result, Bojangles beat analyst's expectations of $122.2 million in revenues on the period.
"We continue to be pleased with the financial results of our iconic Bojangles' brand," said Bojangles' President and CEO Clifton Rutledge. "We are once again very pleased to be raising our annual outlook for revenues and profitability."
In terms of earnings, Bojangles reported net income of $8.9 million, up substantially from profits of $7.0 million over the same period in 2014. Bojangles also increased its adjusted EBITDA by 20% from $17.1 million to $20.5 million, while its pro forma diluted net income per share surged by 53.3% from 0.15 to 0.23.
Bojangles went public in May at $19 before surging above $28 a share several days later. On Wednesday, Bojangles ended the regular session at $17.92, after falling more than 25% over the last several months.
Following the strong third quarter results, Bojangles now expects revenues of $486 to $488 million for the full year, above prior estimates of $483.5 to $487.5 million. Bojangles also anticipates pro-forma earnings of 0.79 to 0.81, up from 0.75-0.78.
"We are actively and diligently working on a number of important initiatives that will strengthen Bojangles' and prepare us for an even brighter future," Rutledge added. "These include investing in our people so we can better uphold our commitment to Bo-Size Service and build-out our menu development capabilities, enhancing our technological infrastructure, improving our supply chain through a new partnership, and expanding our footprint through greater scale in adjacent areas within the Southeast and infilling our core North and South Carolina markets."