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Jamba Juice blames 4Q loss on refranchising

Company’s refranchising effort is now complete

Jamba Inc. declared its franchising initiative complete with the refranchising of 179 company-owned locations in fiscal 2015.

The Emeryville, Calif.-based parent to the Jamba Juice brand said Monday that systemwide same-store sales rose 3.9 percent for the Dec. 29-ended fourth quarter, including a 3.7-percent increase at franchised units and a 5.4-percent jump at company locations.

Revenue for the quarter decreased more than 55 percent, to $19.5 million, in part because of the reduction in company-owned locations. 

The chain deepened its net loss during the fourth quarter, which was $8.3 million, or a loss of 55 cents per share, compared with a loss of $8 million, or a loss of 47 cents per share, a year ago.

At the end of the quarter, the chain included 70 company-owned units, compared with 263 locations in the fourth quarter a year ago. The 893-unit chain also included 748 domestic franchised units, as well as 75 international units.

For the full year, revenue declined nearly 26 percent, to $161.7 million, also primarily due to the refranchising effort, despite a 2.3-percent increase in systemwide same-store sales. 

Same-store sales at company units increased 1.5 percent due to an increase in average check that offset a decline in transactions, the company said. Same-store sales at franchised locations increased 2.7 percent for the year.

The company also grew revenue from its self-service JambaGO outlets and consumer packaged goods to $5.4 million, an increase from $5.1 million the prior year.

For the year, Jamba ended with net income of $9.4 million, or 58 cents per share, compared with a loss of $3.6 million, or a loss of 21 cents per share, a year ago.

Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout

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