) reported a loss of 9 cents per share in the fourth quarter of
2012; a penny better than the Zacks Consensus Estimate and also
ahead the year-ago quarter's loss of 15 cents per share. The
company's growing operational efficiency was primarily
responsible for the bottom line improvement during the quarter.
In the full year of 2012, loss was 3 cents per share versus 16
cents in the prior year.
Total revenues in the quarter remained almost flat year over
year at $44.2 million but were below the Zacks Consensus Estimate
of $46 million. Although Jamba's quarterly revenues were
positively impacted by higher franchise revenues and new unit
openings, it was more than offset by the lower Company-owned
store sales. In 2012, total revenues increased 1% year over year
to $228.8 million.
Sales at the company stores were down 1.9% year over year to
$40.8 million in the fourth quarter. Franchise and other revenues
were $2.8 million, up 24.5% annually, fueled by an increase in
the number of franchise stores and higher comparable store sales
Jamba, the leading restaurant retailer of food and beverage
offerings, experienced negative comps of 1.2% in the reported
quarter versus a rise of 7.7% in the year-ago quarter. The
decline in company-owned comps was caused by lower traffic.
Same-restaurant sales at franchise stores grew 2.3% versus growth
of 4.0% in the year-ago quarter.
Jamba's adjusted operating profit margin expanded 50 basis
points (bps) to 12.7% in the quarter, influenced by enhanced
In 2012, 59 stores were opened, among which one was
Company-operated and the rest franchised. A total of 19 stores
were closed, of which 6 were company owned. Only one store was
refranchised. This brought the total number of stores to 774, of
which 473 were franchised and 301 Company-owned.
In 2013, Jamba plans to set up 60-80 new stores in
The company exited the fourth quarter with cash and cash
equivalents of $31.5 million versus $31.9 million in the previous
quarter. Total liability was $60.2 million compared with $60.8
million in the third quarter.
Emeryville, Calif-based Jamba expects Company-owned comparable
store sales growth of 4% -6% and restaurant operating margin of
Jamba is turning around at a slow but steady pace. It 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.
Jamba also intends to focus on the innovation of new brands,
advertising programs and product extensions. However, lower
traffic may negatively impact Jamba's business going forward.
Jamba currently retains a Zacks Rank #3 (Hold). Another
Red Robin Gourmet Burgers Inc.
) adjusted earnings in the fourth quarter of 2012 were way ahead
of the Zacks Consensus Estimate as well as the year-ago quarter's
earnings. Red Robin Gourmet currently carries a Zacks Rank #1
Other restaurant companies like
Krispy Kreme Doughnuts, Inc.
Burger King Worldwide, Inc
) both with a Zacks Rank #2 (Buy) are expected to perform well,
BURGER KING WWD (BKW): Free Stock Analysis
JAMBA INC (JMBA): Free Stock Analysis Report
KRISPY KREME (KKD): Free Stock Analysis
RED ROBIN GOURM (RRGB): Free Stock Analysis
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