Jamba Juice (JMBA) Reiterates FY12 Guidance, Announced FY13 Plan

January 16, 2013 8:04 AM EST
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Jamba Juice Company (NASDAQ: JMBA) today reiterated fiscal year 2012 guidance, including Company comparable store sales guidance range of positive 4% to 6%(1). The Company also released its “BLEND” Plan 3.0, outlining strategic priorities and initiatives for 2013 that will position the Company for transformational growth and increased shareholder value.

Brand Building and Total Innovation

Jamba’s focus on initiatives that build total brand value though multi-channel brand building and total innovation, include consumer loyalty and engaging marketing programs and partnerships. On-trend specialty beverages and new product platforms will address consumer health and wellness needs across all dayparts.

Lifestyle Engagement

Jamba will continue to develop integrated programs, like their Master of Blending Arts training that will help deepen and broaden the health and wellness knowledge of the Jamba workforce across the system. The development of relevant partnerships and programs will continue to drive the Fight Against Obesity and encourage healthy active lifestyles.

Expand Growth Initiatives

Over the past three years, the Company has made significant accomplishments in transitioning to a franchise-oriented organization. At the close of the fiscal year, 473 of 774 stores were franchise-owned; 301 were company-owned and operated stores. Internationally, Jamba experienced accelerated growth ending the year with 35 franchise stores in three global markets. It will pursue new international markets for global growth in 2013.

Jamba also launched two new flexible formats, JambaGO™ and a limited menu Smoothie Station, that facilitate rapid expansion of healthy menu options into K-12 schools and entertainment and convenience venues, respectively. Both store formats will be expanded significantly in 2013. Jamba will continue to drive best-in-class economics across all store formats. It plans to accelerate franchise growth by deploying a new integrated business model for growth. In addition, new juice bar concept stores, launched in 2012, to extend Jamba’s juice offering will be incorporated in the remodeling and refreshing of up to 100 company stores. The overall effort will provide a more engaging, fresh, contemporary, and fun experience for guests.

New Product, Partners, Channels, and Markets

During 2012, Jamba acquired Talbott Teas, a specialty lifestyle tea brand. It also acquired the intellectual property for their energy drink, which the Company is now expanding into new markets, particularly the West Coast. In 2013, Jamba will increase consumer touch points with innovative branded products in relevant categories that will extend the product portfolio into new channels and markets. The Company also plans to put in place a new business model for the manufacture and distribution of Jamba-branded products that will accelerate the global growth and success of their CPG program.

Drive Enterprise Efficiencies

At the close of 2012, Jamba had launched several technology enhancements to improve the customer experience, enhance speed of service and drive productivity at store level and across the enterprise. New ways to further reduce costs and drive productivity are planned for 2013. As it builds its supply chain into a global competitive advantage, Jamba will pursue and leverage existing and new partnerships to drive greater efficiencies and effectiveness. Improving store economics, including labor, COGS/distribution, occupancy, and store operations, through disciplined cost control and outlier management, will continue to be a focus for the Company.

Outlook for 2013

The Company expects to achieve the following results for fiscal 2013:

Deliver positive company-owned comparable store sales of 4%-6%;
Deliver store-level margin of 20%;
Achieve income from operations of 2.5-3.0%;
Deliver CPG revenue of $4 million-$5 million;
Develop 60-80 U.S. and international locations;
Add 1,000 JambaGO™ served locations; and
Add up to 100 Smoothie Stations.

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