Bagel franchisor BAB's Q3 net income rises 36% on lower overhead costs
BABB•BAB's Q3 revenue rose 18% year over year, while net income increased 36% and earnings per share were $0.03. Higher marketing fund revenue was offset by matching expenses, and the company provided no specific future-quarter or full-year guidance.
1. Q3 results
The bagel and muffin franchisor reported an 18% year-over-year increase in Q3 revenue, driven by marketing fund revenue. Net income grew 36%, with earnings per share of $0.03.
2. Revenue and costs
Modest increases in royalty fee revenue and higher licensing fees and other income also contributed to revenue growth. Lower selling, general and administrative expenses supported net income growth; marketing fund revenue was offset by matching expenses, with no net income impact.
3. Outlook
The company did not provide specific guidance for future quarters or the full year.
