Smart & Final Inc. said Monday that its third-quarter profit soared as the warehouse retailer divested itself of its struggling food service operations.
Los Angeles-based Smart & Final said net income increased to $11.7 million, or 36 cents a share, for the quarter ended Oct. 3, up from $916,000, or 3 cents, a year earlier.
Sales at the 231-store chain increased 12% to $603.2 million from $538.4 million last year.
The profit increase was largely due to the sale of its money-losing food service operations in California and Florida in last year's third quarter.
Excluding those divestitures, the company's operating profit was $12 million in the latest quarter, up 44% from $8.3 million a year earlier.