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Shares of chicken-and-biscuits quick-serve restaurant Bojangles'(NASDAQ: BOJA)dropped as much as 17% today after the company reported first-quarter earnings that didn't quite satisfy investors' palates.
For the first quarter, Bojangles' reported sales of $131.5 million, up 3% year over year but short of analyst estimates. Both owned and franchisedcomparable-restaurant sales decreased slightly, while the company increased sales through new-store development. Additionally, the company reported a small decrease in net income to$7.6 million, or $0.20 per share, down from $0.21 per share inQ1 2016.
Image source: Bojangles'.
The company plans to focus on increasing its franchising business, and is currently testing new concept stores that will have a more modern design and additional technology features -- something other restaurants like Panera have been able to do with great success. In a press release, Bojangles' CEO Clifton Rutledgesaid:
The restaurant industry has been facing a tough last few quarters as a general slowdown among the group has hurt same-store sales and earnings for many of the companies in this space.Regardless, Bojangles' stock had been climbing nicely so far in 2017, rising about 18% before today's drop, so that now it's essentially flat year to date.
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