Jamba releases Q2 results
Comparable store sales up approximately 2 percent
Jamba Inc., Emeryville, Calif., reported unaudited financial results for the second fiscal quarter that ended July 2. The company recorded a quarterly comparable store sales increase of 2.2 percent for company-owned stores, driven by increases in store traffic and average check.
The increase in company-owned comparable store sales was driven primarily by an increase in transaction count of 160 basis points and an average check increase of 60 basis points, it says.
Jamba also reported increases in total revenue, net income, operating margin and earnings per share (EPS) from its expanding consumer product platforms during the second quarter. The company made substantial progress in its key growth initiatives, including fresh-squeezed juice expansion, store refreshes and remodels, and express retail format, it says.
Total revenue increased 1.9 percent to $67.3 million compared with total revenue of $66 million for the prior-year period. Income from operations increased 32.1 percent to $6.6 million, reflecting company-owned store comparable sales growth, increased franchise revenue, and expanding consumer packaged goods (CPG) sales.
During the 13-week period that ended July 2, franchise-operated comparable store sales increased 1.2 percent. Franchise and other revenue increased 27.2 percent to $4.5 million from $3.5 million in the prior-year period. Jamba’s CPG revenue was up 233 percent to $1 million in the 13 week-period that ended July 2, compared with $0.3 million in the prior-year period.
“Despite the challenging consumer and competitive environment, Jamba had strong quarterly achievements and also set the stage for future performance gains and earnings growth,” said James D. White, chairman, president and chief executive officer of Jamba, in a statement. “Our record of more than two years of quarterly system comparable store sales growth continued with an increase that outpaced many of our peers. Total revenue and net earnings both advanced, with EPS for the quarter increasing 33 percent. By increasing our marketing investment and highlighting value promotions, we continue to grow our base of light and lapsed users.
“Our growth initiatives — fresh juice expansion, store re-imaging, consumer products, global franchise development and express retail concepts — made good progress during the quarter,” he continued. “Several longer-term efforts, including supply chain and labor optimization programs, organization structure, and marketing and pricing initiatives, were launched during the quarter, and we expect that these efforts will yield positive results in 2013 and beyond.”
As of July 2, system-wide, Jamba has 787 stores in the United States, of which 492 are franchise-operated stores and 295 are company-owned. Franchise-operated stores include Jamba Smoothie Stations, the new limited-menu express format. Internationally, there are 42 store locations, all of which are franchise-operated. During the quarter, the total number of JambaGO served locations increased to 636.
The company expects to achieve the following results for fiscal 2013: deliver positive company-owned comparable store sales of 4-6 percent and store-level margin of 20 percent; achieve income from operations of 2.5-3 percent of revenue; deliver CPG revenue of $4 million-$5 million; develop 60-80 new U.S. and international locations; and add 1,000 JambaGO served locations.