Jamba Juice Company, a subsidiary of
), recently announced the opening of a new franchised store in
Indiana. This new store marked the company's second opening with
franchise company, Blended Blessings LLC. LaPhonso Ellis, a former
NBA star, is the principal of this franchise company.
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The new Jamba store is located in University Park Mall- a shopping
mall in Mishawaka, a twin city of South Bend in St. Joseph County,
Indiana and is owned by Simon Property Group. The mall offers a lot
of choices for shoppers and this new store is expected to benefit
immensely from its strategic positioning.
The first store was opened by the franchise in the South Bend,
Indiana market and it remains committed to the expansion of Jamba
Juice stores in Indiana. The franchise plans to open four
additional units in and around Indianapolis, Indiana by 2016.
Indiana is located in the Mid-western and Great Lakes regions of
North America. Indianapolis is the largest and the capital city of
Indiana. The state has a diverse economy with several metropolitan
areas and a number of smaller industrial cities and towns. The
promising restaurant industry in Indiana acts as a major driving
force to the U.S. economy. In 2012, total revenue from the
restaurant sector in Indiana is projected to be around $8.8
We believe that the new store opening is in line with the company's
expansion strategy through franchising. We also believe that
Jamba's transition to a more franchise-centric model will involve
less capital and stabilize cash flow generation.
Jamba Juice, which currently operates more than 780 stores, will
continue to focus on expansion and expects to sign more franchise
agreements in 2012 that will expand its brand presence in the U.S.
market. In July, the company signed eight new franchise development
agreements that will broaden its presence in the central and
eastern regions of the U.S., adding a total of 32 stores over the
next five to seven years. For 2012, Jamba plans to open 40-50 new
stores in the U.S. locations and 15 new stores internationally.
We are impressed with Jamba's slow-but-steady turnaround. Besides
the domestic market, Jamba is also expanding in the overseas
market. Over the past 18 months, Jamba has opened 30 franchised
locations in international markets -- including 20 smoothie shops
in South Korea, 7 stores in Canada and 3 in the Philippines. Jamba
expects to open around 320 stores internationally in the next 10
years in partnership with its current international franchise
Emeryville, California-based Jamba owns and franchises Jamba Juice
stores and also operates as a restaurant retailer of specialty
beverages and various food products across the globe. As of July 3,
2012, it had 783 stores, including 305 company-owned and operated
stores and 448 franchise-operated stores in the United States, as
well as 30 stores on the international front.
Jamba, which competes with the likes of
Caribou Coffee Company Inc
), carries a Zacks #5 Rank, which translates into a short-term
Strong Sell rating. Our long-term recommendation for the stock