News

Jamba Juice reports increased sales, progress toward 'asset light' model

Jamba Juice refranchised 13 stores and added 51 new global franchise stores through the end of the third quarter, and reported mid-single digit percentage point increases through the first eight weeks of Q4

December 4, 2014

Jamba Juice is reporting progress in its move to achieve an 80 percent franchise/20 percent company-owned unit mix, and is also reporting increased same-store sales for the first eight weeks of Q4.

Jamba Juice said it is on track to move to an "asset light" model, and hopes to have 80 percent of its stores franchised within the next year.

Jamba Juice refranchised 13 stores and added 51 new global franchise stores through the end of the third quarter, and is on track to refranchise an additional 114 stores in California within the first half of 2015.

“We are pleased with the progress we are making on all fronts at Jamba as our juice and whole food blending platform continues to gain consumer traction and we continue to implement improvements to enhance the efficiency and profitability of our organization,” said James D. White, chairman, president and CEO, in a news release. “Over the past several months we have been working diligently to identify cost reductions and accelerate our transition to an asset light model, which we believe will enable our company to drive growth and shareholder value.”

Jamba Juice also said it remains on track to add 500 new franchised stores in the next five years.

Same-store sales have shown increases in the mid-single digit percentage point range through the first eight weeks of the Q4, according to the release, a jump the company attributes in part to its recently launched line of cold pressed ready-to-drink juices.

Jamba Juice also recently repurchased 477,356 shares of its common stock for a total of $6.0 million under its previously announced stock repurchase program. The company also intends to institute a 10b5-1 Share Repurchase Plan to facilitate further repurchases of its common stock.