EMERYVILLE Calif. Jamba Juice's parent company said incremental sales of food and hot beverages provided relief during the traditionally slow fourth quarter and may help shift same-store sales back into positive territory in 2010.
For the fourth quarter ended Dec. 29, Jamba Inc. reported a net loss of $12.4 million, or 23 cents per share, compared with a loss of $41.2 million, or 75 cents per share, a year ago, when the company booked heavier impairment and lease termination charges.
Latest quarter revenue dropped 9.8 percent to $50.6 million, Jamba said. Same-store sales at company-owned stores fell 5.3 percent, compared with a 12.0-percent drop in corporate same-store sales in the year-ago quarter.
Jamba's president and chief executive, James White, who also is adding the role of chairman, said he was pleased with results of the past year's efforts to revitalize the brand for long-term growth. Key among those efforts was the introduction and continuing rollout of new food offerings, such as oatmeal, wrap sandwiches and salads, as well as hot beverages and fruit teas, all of which helped boost sales in the fourth quarter, typically a seasonally challenging time for the brand, he said.
As part of the revitalization plan, the chain has also expanded licensing opportunities, such as the recent introduction of Jamba Juice-branded novelty ice cream bars and a home smoothie maker. Ready-to-drink beverages are still in the works.
For the full year, Jamba reported a net loss of $25.8 million, or 48 cents per share, compared with a net loss of $149.2 million, or $2.80 per share, in fiscal 2008. Revenue in 2009 declined 12.1 percent, to $301.6 million. Same-store sales at corporate stores were down 10.3 percent for the year.
“At the start of 2009, we said that turnaround and transformation would be our mission,” White said. “With the implementation of disciplined cost controls and the expansion of our business model, we are evolving from a made-to-order smoothie company into a healthy, active lifestyle company.”
During the year, the company expanded franchising efforts, resulting in the opening of 25 new stores, and 27 corporate locations were sold to franchisees as part of an ongoing refranchising effort.
And the company has also made progress in retiring long-term debt, said White.
Despite the tough operating environment, White said he is confident Jamba will see same-store sales turn positive this year, especially as the expanded food offerings reach more stores.
White said he also expects continued margin improvements and the chain is likely to see up to 50 franchise stores open. The company also plans to expand into one “major international market.”
In addition, White set the goal of refranchising up to 150 company-owned stores in 2010. Currently Jamba Inc. operates 478 units and franchises another 261 for a total of 739 stores.
Late Tuesday, Jamba said White would take on the additional role of chairman, replacing Steven Berrard, who has served as chairman since 2005.
Contact Lisa Jennings at [email protected].
