News

Jamba Inc. comps drop in Q2, revenue increases

July 24, 2008

EMERYVILLE, Calif. — Jamba Inc. has reported preliminary comparable-store sales and revenue results for its fiscal 2008 second quarter.

Company-owned same-store sales decreased 7.3 percent for the quarter, compared to a decrease of 3.5 percent reported for the same period last year.

Meanwhile, revenue increased 10 percent to $98.6 million, up from $89.6 million reported in Q2 '07.

Fourteen new company-owned locations were opened, bringing the total number of company-owned stores to 518 and the total number of systemwide stores to 736.

For the year

For the 28-week period ended July 15, 2008, company-owned same-store sales decreased 5.8 percent, compared to an increase of 0.2 percent reported for the same period last year.

Total revenue increased 11.8 percent to $200.2 million, up from $179 million reported during the same period last year.

Company officials said the economy is forcing customers to pare back on their discretionary spending, which has impacted comparable sales. Jamba is responding to the downturn with an aggressive value promotion and the offering of 210-calorie smoothies made with real whole fruit, 100 percent pure fruit and fruit juices, no high-fructose corn syrup and no sugar added. The promotion targets both new and existing customers with a $2.95 All Fruit Smoothie called the "Orange Refresher," available for a limited time only.

Jamba also is responding to increased competition from the quick-service segment with new porducts, such as breakfast offerings made with real whole fruit, yogurt, soy milk, and organic granola, which have driven positive breakfast daypart comps since their launch in February.

On July 15, Jamba closed eight stores as part of the company's previously announced store reduction plan. For the remainder of 2008, Jamba plans to open four more locations, all of which are currently under construction.

Food & Beverage