EMERYVILLE Calif. Jamba Inc. booked a smaller net loss in the fourth quarter versus the same quarter a year earlier, on an easy year-ago comparison that included more than $200 million in impairment charges for the parent to the Jamba Juice chain.
While impairment and store lease termination charges totaling about $21.7 million still plagued the company in its latest quarter, Jamba’s net loss totaled $41.2 million, or 75 cents per share. In the fourth quarter a year earlier, Jamba’s net loss totaled $150 million, or $2.85 per share, mainly because of $200.6 million in charges for trademark impairment.
The Jamba Juice chain’s sales also were still challenged for the 12 weeks ended Dec. 30, as same-store sales at corporate locations fell 12.0 percent. During the latest quarter, the company closed 22 underperforming stores, completing its previously announced plan to close a total of 31 stores in 2008. The chain’s unit count now totals 729 locations, including 511 corporate units and 218 franchised units.
Revenue for the latest quarter increased 2.8 percent to $56.1 million.
Looking ahead, Jamba officials said that new, in-store food and other retail products — along with easier prior-year comparisons — are expected to boost corporate performance in the second half of this year. The company said it would continue its previously announced “Blend” turnaround plan, which includes expense reduction of about $25 million, building a customer-first culture, adding more food offerings that appeal across all dayparts, and licensing more consumer products, which are expected later this year or in early 2010.
James White, president and chief executive, said sales of Jamba Juice’s steel-cut oatmeal introduced earlier this year have “met or exceeded expectations in all geographic areas,” and is a first step in a food platform designed to increase sales and traffic.
He also noted that Jamba’s test of grab-and-go items provided by Seattle-based Organic to Go has been completed, but he declined to offer details on what new menu items might be coming. “We have proved that there is a significant opportunity for more food in our stores,” he said.
Company officials also said it would work to reach a balance between corporate and franchised stores with an aggressive franchising push, particularly in non-traditional locations such as college campuses, airports and malls.
About 50 franchise locations are expected to open in 2009, and the company recently completed the sale of 10 corporate stores to franchisees in Arizona. Another 20 company locations are on the market for refranchising.
For the full year ended Dec. 30, Jamba reported a net loss of $150 million, or $2.80 per share, compared with a year-earlier loss of $113.3 million, or $2.17 per share. Fiscal 2008 revenue rose 8.1 percent to $342.9 million. Same-store sales at corporate stores fell 8.1 percent. Jamba opened 35 corporate locations during 2008.
Contact Lisa Jennings at [email protected].
