) reaffirmed its previously issued operating guidance for fiscal
2012 and declared its expansionary plans, brand modernization
initiatives, addition of new products in its pipeline and BLEND
Plan 3.0 for fiscal 2013.
Fiscal 2012 Guidance
As per the guidance, the company continues to expect that its
company-owned comparable store sales will grow by 4%-6% in fiscal
2012. Jamba's management had provided a detailed financial
outlook for fiscal 2012 when it reported the third quarter
results. Consumer Packaged Goods (CPG) licensing revenue is
expected to be nearly $3 million.
The company projects that adjusted operating profit margin
will be within 20%-23%. In fiscal 2012, general and
administrative costs are expected to remain consistent year over
On the expansion front, management plans to open 40-50 new
restaurants in U.S. In addition, the company is also planning to
unveil nearly 15 outlets overseas and 400-500 JambaGO units in
Apart from the guidance, the company also intends to focus on
innovation of new brands, advertising programs and product
extensions. In this regard, the company is venturing into
emerging markets by forming new partnerships and
Earlier in 2012, Jamba had acquired Talbott Teas to enhance
its health and wellness business. Moreover, the company has also
declared acquisition of Nestle's Intellectual Property to boost
its Jamba All-Natural Energy Drinks platform.
BLEND Plan 3.0
The company is continuously gaining from its BLEND Plan 2.0
initiatives in terms of cost and efficiency and now expects that
its newly launched BLEND Plan 3.0 would further augment its
growth in fiscal 2013.
With the new plan, the company will improve its brand value
through enhancing its menu format and upgrading its store style
in fiscal 2013. The company will also benefit from the expansion
of its limited menu Smoothie Stations as well JambaGO and CPG
growth under Jamba-brand.
Fiscal 2013 Outlook
The company also provided fiscal 2013 guidance. The company
anticipates that its company-owned comparable store sales will
increase 4%-6%. Moreover, CPG revenue at Jamba will be within $4
million - $5 million. Store-level margins are expected to be
In fiscal 2013, the company is planning to launch 60-80 stores
in U.S. and worldwide. The company is also expecting to launch
1,000 JambaGO units and 100 Smoothie Stations. Further, the
company's guidance includes revamping 100 stores.
Jamba owns and franchises Jamba Juice stores and also operates
as a restaurant retailer of specialty beverages and various food
products across the globe. During the third quarter of fiscal
2012, the company was operating 473 franchised and 301 company
owned stores. The company also owns 35 franchised units across
three international markets.
It competes with the likes of
Caribou Coffee Company Inc.
Currently, Jamba retains a Zacks Rank#5 (Strong Sell). We
maintain our long-term 'Underperform' recommendation on the
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