Jamba plans to grow menu, sell stores in face of mounting losses

Jamba plans to grow menu, sell stores in face of mounting losses

EMERYVILLE Calif. Jamba Juice [3] locations to franchisees in an effort to shore up sales and profit and reverse its flagging fortunes. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

News of the initiatives came as the company reported that its net loss for the first quarter ended April 21 had widened to $10.2 million, or 19 cents per share, compared with a loss of $6.4 million, or 12 cents per share, in the same quarter a year ago. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

Revenue for the latest quarter fell 12.5 percent to $88.9 million. Same-store sales at corporate units fell 13.8 percent, Jamba said. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

The parent to 732 corporate or franchised Jamba Juice locations has struggled of late mainly because so many of its stores are based in California, a state that has been hit hard by rising unemployment and an unstable housing market. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

To spark sales, the company said it would expand a test of a comprehensive food program, including wraps, sandwiches, salads and cold teas, from six stores to 200 stores in California during the current second quarter. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

In addition, Jamba also announced plans last month to lend the Jamba Juice name to a line of frozen novelties and a toy blender for kids to use to make smoothies at home. The company is also working with Nestlé on a line of ready-to-drink beverages. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

“With a continued disciplined effort on expense reduction, a commitment to a customer-first ‘operationally focused’ service culture across all Jamba Juice stores, building a retail food capability across all dayparts, and enhancing our consumer products licensing platform, our revitalization is well under way,” said James White, Jamba’s president and chief executive. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

Still, because of the challenging economic environment, White said, the company expects to see negative same-store sales trends continue. Jamba said it would open few, if any, corporate locations this year, though up to 50 franchise stores are expected to open. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

To help shore up the company’s bottom line, Jamba said it has introduced a refranchising plan that is expected to result in the sale of up to 150 corporate Jamba Juice locations, mostly based outside the brand’s core market of California. The plan’s proceeds would allow the company to pay down debt and help finance future growth. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

The goal is to sell units along with development agreements to expand the chain’s presence outside California. Officials said company research indicates the potential for as many as 2,700 stores in the United States. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

“Refranchising will also allow us to better focus our operational resources to company-owned stores in California to improve efficiencies and performance,” White said. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

The Emeryville, Calif.-based company said it has engaged the Praetorian Group to spearhead the refranchising program, which the company hopes will be completed within 12 to 18 months. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

Securities analyst Jeff Farmer at Jefferies & Co. in Boston said in a research note that Jamba’s refranchising plan is not a panacea. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

“It remains to be seen who will step up to make meaningful store acquisitions—and more importantly what price Jamba can attract—resulting in what we anticipate will turn out to be something approaching an organized fire sale,” he said in a report. —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate

Earlier this year, Jamba also outlined strategic priorities that included cutting about $25 million in store-level costs, expanding food options on the menu and more aggressively franchising in nontraditional locations, as well as building licensing opportunities. — [email protected] [4] —Jamba Inc. said in late May it would expand its menu offerings and sell 150 corporate