Jamba, Inc. reported unaudited financial results for the third fiscal quarter ended Oct. 2, 2012. The company recorded a quarterly comparable sales increase of 3.9 percent, marking two years of consecutive, quarterly company-owned stores and system-wide sales growth.
Jamba continued its solid gains in store-level profitability as improved traffic drove increases in all day parts. During the quarter, Jamba opened 12 new stores, eight in the U.S. and four in international markets.
“The excellent results Jamba has achieved during the quarter and year-to-date give us good momentum for a strong finish to the year,” said James D. White, chairman, president and CEO of Jamba, Inc., in a prepared statement. “This progress gave us an opportunity during the quarter to increase our investments in marketing to deliver customer value-oriented promotions designed to grow our customer base and strategic growth initiatives, like JambaGO® and Talbott Teas®, which will accelerate our growth as a healthy, active lifestyle brand.
“Our marketing encourages trial by new customers, who become long-term fans, by showcasing our healthy on-the-go options along with our value proposition. Our innovative JambaGO initiative continues in high gear with 169 served locations at the end of the quarter.
“Based on our strong year-to-date performance, we are affirming our guidance for 2012 and providing a preliminary 2013 outlook that underscores our optimism for the future,” concluded White.
This is the third quarter the company’s results are being reported on the basis of 13-week fiscal quarters which results in 12 fiscal periods. Therefore, the fiscal 2012 quarterly results are not directly comparable to fiscal 2011 quarterly results. The fiscal 2012 third quarter began on July 4, 2012 and ended on Oct. 2, 2012. The third quarter of fiscal 2012 had 13 weeks and the third quarter of fiscal 2011 had 12 weeks. For comparable sales, the percentage change in company-owned and system-wide comparable sales compares the sales during a 13- and 39-week period in 2012 to the sales from the equivalent 13- and 39-week periods in the prior year. The company has provided pro-forma results for fiscal 2011 third quarter in the attached tables.
Third quarter fiscal 2012 results
For the third quarter ended Oct. 2, 2012, total revenue increased 14.7 percent to $65.5 million from $57.1 million in the third quarter ended Oct. 4, 2011. The increase is primarily due to the inclusion of 13 weeks in the fiscal 2012 third quarter compared to 12 weeks in the fiscal 2011 third quarter. The increase in company-owned comparable store sales of 3.9 percent was driven primarily by an increase in transaction count of 510 basis points, partially offset by an average check decrease of 120 basis points. This represents the company’s eighth consecutive quarter of positive company-owned comparable store sales growth. In the third quarter of 2012, franchise-operated comparable store sales increased 1.0 percent and system-wide comparable store sales increased 2.5 percent. Franchise and other revenue increased 23.9 percent to $3.7 million from $3.0 million in the 12-week period ended Oct. 4, 2011. Jamba’s consumer packaged goods (CPG) revenue was $0.6 million in the third quarter of 2012, compared to $0.3 million in the prior year period.
