News

Jamba adjusts growth targets

October 8, 2013

Jamba Inc. this week provided an update on key business initiatives, preliminary fiscal year 2014 guidance and adjusted estimates for fiscal year 2013, according to a company press release. Highlights included:

• JambaGo express smoothie units are now opening in more than 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 more than 1,800.
• International markets for Jamba are expected to grow from four countries currently to between seven and nine by year-end 2015. The estimated potential for international stores has therefore increased from 1,000 to 1,500.
• A newly launched cost and productivity improvement program is expected to yield savings of 100-200 basis points in operating margin once fully operationalized.
• And 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, according to the company.

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.

"Jamba's adjusted targets for 2013 and preliminary forecasts for 2014 represent a realistic and balanced approach to achieve sustained, long-term growth and also drive significant gains this year in operating margin, net income and other key metrics," said James D. White, chairman, president and CEO of Jamba.

He also said the chain's 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," he said.

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