Safeway Inc. reported third quarter net income Thursday of $173.5 million (39 cents per share), up 29 percent from $123 million (27 cents) for the same period a year earlier.

Revenue for the Pleasanton-based company, which operates the Vons and Pavilions chains, was up 5-percent to $9.4 billion. Chief Executive said the positive earnings were driven by a 5.3 percent increase in same store sales along with decreased operating expenses.

Shares in Safeway, which owns and operates 1,775 stores in the United States and Canada, were down 90 cents in early trading Friday to $28.21.