Industry News | October 8, 2013

Jamba Juice Predicts Growth for Upcoming Year

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Jamba Inc. released an update on key business initiatives, preliminary fiscal year 2014 guidance, and adjusted estimates for fiscal year 2013.

JambaGo express smoothie units are now opening in over 1,000 food courts at a major retailer across the country.  The partnership represents the largest single expansion of JambaGo to date and will bring the total units to over 1,800. International markets for Jamba are expected to grow from four countries to between seven and nine by the end of 2015, increasing the estimated potential for international stores from 1,000 to 1,500.

A newly launched cost and productivity improvement program is expected to yield savings of 100 to 200 basis points in operating margin once fully operationalized. The ISIS mobile wallet that enables payment via phone is now rolling out nationally to Jamba stores.  Jamba’s new loyalty program, partnering with SpendGo, is scheduled to follow in the first quarter of 2014.

As a result of constraints on consumer spending, adverse weather in key markets, and increased competition, Jamba adjusted several estimates for 2013.  The company now expects system-wide same store sales to be flat to 1 percent, store-level margins to be 16 to 17 percent, and operating margin to be 1 to 2 percent.

“Our analysis shows that a consumer spending slowdown reduced third quarter comparable store sales comparisons for company stores by 3 to 4 percent. We believe that current campaigns did not have the same impact as the prior year, impacting the comparison by 1 to 2 percent, and adverse weather in key markets caused a further reduction of approximately 1 to 2 percent,” says James D. White, chairman, president, and CEO of Jamba. Preliminary results for third quarter same store sales reflect a decrease in system-wide comparable store sales of -3.4 percent, company-owned stores of -5.5 percent, and franchise stores of -1.3 percent.”

Preliminary forecasts for 2014 show solid growth with system-wide same store sales of 2 to 4 percent, store-level margin of 18 to 19 percent, operating margin of 2 to 3 percent, domestic and international openings of 60 to 80 new stores, and up to 1,000 new JambaGo installations.

“Our JambaGo initiative is a good example of robust growth.  We are delighted to broaden our distribution to many other customers who will now have the opportunity to experience our delicious Jamba smoothies, which not only taste great but also have inspired millions of fans to pursue active healthy life styles,” White says.