Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Healthy and Active Lifestyle Take of Jamba, Inc. (JMBA)

Page 1 of 2

In a January 14 press releaseJamba, Inc. (NASDAQ:JMBA) Juice Company, the country’s leading smoothie chain, announced an initiative for changing the store format and design that truly reflects the “active and healthy lifestyle” concept that the company wishes to promote. The new design will cover new limited menu Smoothie Stations, drive-through facilities and Juice bars. Existing stores are to be refreshed in the next four years.

New Entrants

The health concept of Jamba, Inc. (NASDAQ:JMBA) made Starbucks Corporation (NASDAQ:SBUX) add juice bars in its outlets, and McDonald’s Corporation (NYSE:MCD) added smoothies to its coffee house style outlets, McCafe. Starbucks was already serving smoothies before it included juice in 2011 with the acquisition of Evolution Fresh, an American company known for, among other things, artisanal super-premium fruit juices.

Jamba, Inc. (NASDAQ:JMBA)With multi-billion dollar companies entering the field, many people thought that it was just a matter of time before Jamba, Inc. (NASDAQ:JMBA) Fruit prepared its farewell speech or was taken over. But it was not to be. Instead, fruit juice in the world’s largest burger chain and the king of coffee houses worked to make people, and with it the market, aware of the potential of the “health concept.” Just as Starbucks did wonders with coffee decades ago, inclusion of juice in its outlets gave fruit juice the premium label that it deserved.

Stock Performance

Evolution Fresh was acquired on November 10, 2011, and as if by a signal, the Jamba stock started its uphill journey almost from that date. From Nov. 11, 2011 to March 5, the day of the earnings call of its Q4 and fiscal year 2012 results, the stock has appreciated 67.25%.

Fourth Quarter/Fiscal Year 2012 Earnings

For the first time since it went public, Jamba, Inc. (NASDAQ:JMBA) reported a net income for the full year in its annual report for the fiscal Year 2012, released on Feb. 5, 2013.

Loss in the fourth quarter was of $6.9 million. This was however, less than the $9.8 million loss reported for Q4 prior year. Sales at company-owned stores declined by 1.2%, whereas franchise operated stores reported an increase of 2.3% in sales. Revenue for the quarter was almost the same as Q4 prior year – $44.2million.

However, revenues were up from $226.4 million in the prior year to $22.8.8 million in the fiscal year ended Jan. 1, 2013. The 1% increase was due to a 5.1% increase in sales in company-owned stores. Net income for the full year was $0.3 million as compared to a loss of $8.3 million in the previous year, mostly due to an increase of 5.1% in system-wide and franchise-operated store sales.

Although Jamba, Inc. (NASDAQ:JMBA) menus include warm drinks, the problem is that the focus product is more of a seasonal business – mostly spring and summer. As such, instead of quarterly, annual results are more reflective of the company’s financial performance.


In a true sense, there is no public listed company apart from Starbucks that can be termed as Jamba’s competitor. Other competitors include privately owned companies like Maui Wowi Franchising and Smoothie King.

Even Starbucks is too big a company to be compared with Jamba, Inc. (NASDAQ:JMBA). With a market cap of $42.34 billion, it is almost 200 times the value of Jamba (market cap: $221.17 million). Juice, for Starbucks is but one segment and a new one at that. In March 2012, it opened its first store, named Evolution Fresh, centered on juice instead of coffee for which Starbucks is famous for. A writer at USA Today termed the event as “Goodbye grind, welcome squeeze.”

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!