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Jamba reports 1Q loss, while same-store sales rise

Jamba reports 1Q loss, while same-store sales rise

Net loss widens due to organizational restructuring costs

Jamba Inc. reported Thursday a wider net loss in the first quarter ended March 31, due to organizational restructuring costs, but premium juices and energy bowls lifted same-store sales.

The company’s net loss increased to $1.8 million in the first quarter, or 11 cents per share, from $244,000, or 1 cent per share, the previous year. In addition to restructuring costs, the company said higher food and labor costs associated with its new juice and Energy Bowl platforms contributed to the loss.

Systemwide same-store sales rose 5 percent during the quarter, including a 6-percent increase at company-owned Jamba Juice locations and a 4.2-percent increase at franchised units.

“Jamba’s results reflect value-creating accomplishments on several fronts, ranging from increases in comparable-store sales driven by our premium juice platform, to refranchising gains and new venture growth,” Jamba CEO James White said in a statement.

The company plans to refranchise more units, with the goal of owning 10 percent of its 805 U.S. locations by the end of the year. A year ago, Jamba owned 30 percent of its restaurants. The company has a deal to sell 100 company-owned units in San Francisco, Sacramento and San Diego to the Vitaligent Group for $36 million.

Jamba expects to sell another 90 to 100 locations by the end of the year, which would generate proceeds of $55 million to $70 million.

Total revenue in the quarter was $52.5 million, rising less than 2 percent, from $51.6 million the previous year. The increase in same-store sales was offset by the reduction in the number of company-owned restaurants.

The company said that general and administrative expenses increased 7.3 percent, to $9 million, from $8.4 million, but about $500,000 of that increase was due to organizational restructuring. The company is transitioning some administrative functions to Capgemini, as well as refranchising.

Jamba is working to improve operations at restaurants to increase unit margins by 200 to 300 basis points this year.

Contat Jonathan Maze at [email protected].
Follow him on Twitter: @jonathanmaze

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