Walgreen 4Q profit rises and tops estimates

NEW YORK (AP) — Walgreen Co., the largest drugstore chain in the U.S., said Tuesday its profit rose 8 percent in the fiscal fourth quarter as it boosted sales by adding more than 500 stores.

Walgreen shares jumped more than 11 percent as the results easily surpassed analyst expectations. The shares are on pace for their largest single-day gain in a year.

Walgreen said prescription drug sales improved, and sales of other items like cosmetics and food were more profitable because of better prices and successful promotions. Sales of "front end" or nonpharmacy items have been hurt by the weak economy as shoppers have cut back on their spending.

The company said the beginning …