BJ's Wholesale Club Inc. reported a 5 percent increase in fourth-quarter profit Wednesday as shoppers worried about the economy turned to its membership clubs for deals. The company's shares rose more than 7 percent.

The nation's third-biggest warehouse club chain, which has seen strong growth for some time in food, was able to win market share away from traditional grocers. The company said food sales jumped 11 percent in the quarter but sales of its non-food items were flat.

"For BJ's, economic downturns create challenges and opportunities," Chief Executive Laura Sen told investors during her first conference call as CEO. "We are strategically looking to take advantages of downturn to gain market share and we are very optimistic about BJ's long-term prospects."

BJ's competes against the likes of larger companies like Sam's Club and Costco Wholesale Corp., which said earlier Wednesday that its fiscal second-quarter profit fell 27 percent.

Shares of BJ's rose $1.98, or 7.2 percent, to close at $29.42 Wednesday.

Natick, Mass.-based BJ's earned $52.7 million, or 91 cents per share for the quarter that ended Jan. 31, up from $50.2 million, or 80 cents per share, in the same quarter a year ago.

The company also saw a benefit from state income tax audit settlements. Adjusted for that, BJ's earned 89 cents per share for the quarter.

Revenue grew 3 percent to $2.56 billion from $2.48 billion.

Analysts polled by Thomson Reuters, who typically exclude one-time items, forecast earnings of 86 cents per share on sales of $2.63 billion.

Same-club sales, or sales at BJ's locations open at least a year, increased 1.7 percent for the quarter. Excluding gas, same-club sales rose 6.4 percent.

Executives said its gains in fourth quarter from expense controls and growth of sales and customer base were partially offset by lower margins on merchandise.

BJ's, while one of the smaller competitors in the field, outlined big ambitions for the coming year to take more market share away from grocers, where its customers continue to do the bulk of their food shopping.

The company is planning for a 5 percent to 7 percent increase in merchandise comparable sales driven by food and consumables in 2009. And BJ's projects earnings of $2.26 to $2.36 per share in 2009, while analysts expect a profit of $2.28 per share.

The outlook is slightly below an earlier estimate from BJ's of $2.27 to $2.39 per share but company leaders said the adjustment was to accommodate for a changes in margins, added stock buybacks while shares were lower and plans to reinvest any gains into lower pricing to help draw customers during the weak economy.

BJ's currently runs 180 BJ's Wholesale clubs in 15 states and plans to open seven new stores in 2009.

The company said Wednesday that for the full year, profit rose 10 percent to $134.6 million, or $2.28 per share, from $122.9 million, or $1.90 per share, in the previous year. Adjusted earnings were $2.23 per share in the most recent fiscal year.