Jamba States FY12 & FY13 View - Analyst Blog
18 Janeiro 2013 - 8:20AM
Zacks
Emeryville, California-based
Jamba Inc. (JMBA) reaffirmed its previously issued
operating guidance for fiscal 2012 and declared its expansionary
plans, brand modernization initiatives, addition of new products in
its pipeline and BLEND Plan 3.0 for fiscal 2013.
Fiscal 2012
Guidance
As per the guidance, the company
continues to expect that its company-owned comparable store sales
will grow by 4%-6% in fiscal 2012. Jamba’s management had provided
a detailed financial outlook for fiscal 2012 when it reported the
third quarter results. Consumer Packaged Goods (CPG) licensing
revenue is expected to be nearly $3 million.
The company projects that adjusted
operating profit margin will be within 20%-23%. In fiscal 2012,
general and administrative costs are expected to remain consistent
year over year.
Expansion
Plans
On the expansion front, management
plans to open 40-50 new restaurants in U.S. In addition, the
company is also planning to unveil nearly 15 outlets overseas and
400-500 JambaGO units in fiscal 2012.
Apart from the guidance, the
company also intends to focus on innovation of new brands,
advertising programs and product extensions. In this regard, the
company is venturing into emerging markets by forming new
partnerships and acquisitions.
Earlier in 2012, Jamba had acquired
Talbott Teas to enhance its health and wellness business. Moreover,
the company has also declared acquisition of Nestle’s Intellectual
Property to boost its Jamba All-Natural Energy Drinks platform.
BLEND Plan 3.0
The company is continuously gaining
from its BLEND Plan 2.0 initiatives in terms of cost and efficiency
and now expects that its newly launched BLEND Plan 3.0 would
further augment its growth in fiscal 2013.
With the new plan, the company will
improve its brand value through enhancing its menu format and
upgrading its store style in fiscal 2013. The company will also
benefit from the expansion of its limited menu Smoothie Stations as
well JambaGO and CPG growth under Jamba-brand.
Fiscal 2013
Outlook
The company also provided fiscal
2013 guidance. The company anticipates that its company-owned
comparable store sales will increase 4%-6%. Moreover, CPG revenue
at Jamba will be within $4 million - $5 million. Store-level
margins are expected to be 20%.
In fiscal 2013, the company is
planning to launch 60-80 stores in U.S. and worldwide. The company
is also expecting to launch 1,000 JambaGO units and 100 Smoothie
Stations. Further, the company’s guidance includes revamping 100
stores.
Conclusion
Jamba owns and franchises Jamba
Juice stores and also operates as a restaurant retailer of
specialty beverages and various food products across the globe.
During the third quarter of fiscal 2012, the company was operating
473 franchised and 301 company owned stores. The company also owns
35 franchised units across three international markets.
It competes with the likes of
Starbucks Corporation (SBUX) and Caribou
Coffee Company Inc. (CBOU).
Currently, Jamba retains a Zacks
Rank#5 (Strong Sell). We maintain our long-term ‘Underperform’
recommendation on the stock.
CARIBOU COFFEE (CBOU): Free Stock Analysis Report
JAMBA INC (JMBA): Free Stock Analysis Report
STARBUCKS CORP (SBUX): Free Stock Analysis Report
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