3 Questions for Jamba, Inc. (JMBA)

The good news here is that Statrbucks reaffirmed its 2013 outlook when it reported last month. If consumers aren’t flinching at costly blasts of java, then the smoothie chain should hold up just fine.

There can always be snags on store expansion, JambaGO rollouts, and the distributor relationships necessary to cultivate $5 million packaged goods sales outside of the stores. Taking back its consumer packaged goods business from Nestle was a brazen move, though the timing may be iffy to take control of its energy drink lines at a time when Monster Beverage Corp (NASDAQ:MNST) has come under fire for the adrenaline-juicing contents of its popular canned beverages. Monster recently posted softer-than-expected sales, though the shares rallied last week as the company defended itself capably against reports detailing the risks of caffeinated beverages.

However, the more important store-based metrics should hold up just fine. If Jamba strays higher or lower on those guidance items, the shares should react accordingly.

Final thoughts for the next 24 hours
Heading into tomorrow’s report, investors shouldn’t panic at the sight of a loss. It also wouldn’t be a shock if Jamba posts a deficit larger than the $0.11 a share that Wall Street is targeting. Jamba has come up short against analyst bottom-line projections in each of the two previous quarters.

Investors also shouldn’t freak out at weak revenue growth. Analysts are eyeing just 4% in revenue growth, but that metric is being weighed down by the stores that are being passed on to franchisees. The refranchising push results in lower revenue but healthier profit margins.

Let’s get those blenders ready.

The article 3 Questions for Jamba originally appeared on Fool.com and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz owns shares of Jamba. The Motley Fool recommends McDonald’s, Monster Beverage, and Starbucks. The Motley Fool owns shares of McDonald’s, Monster Beverage, and Starbucks.

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