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Food Sales Help BJ's Wholesale Exceed Earnings Expectations

Segment pioneer BJ’s Wholesale club today credited a 10 percent gain in food sales during its fourth quarter as a factor in its better-than-expected earnings.

For the quarter, BJ's reported earnings of $0.89 per share, $0.03 better than the First Call consensus of $0.86. Revenues rose 3.2 percent year-over-year to $2.5 billion; the consensus expected $2.63 billion. During the quarter, non-gas same-store sales overall rose 6.4 percent.

BJ’s in late February was aggressively promoting in-home dining and its budget-friendly, convenient products (despite the fact that many of its business members are small foodservice operators). In a media release, the company stated, “…With the convenience of preparing homemade meals or simply heating and serving, these alternatives are less expensive than eating out and allow consumers to enjoy some of their favorite foods while enjoying time at the table with family and friends in the privacy of their own home.”

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