JMBA - Juicin Up For 2010

Jamba Inc. (NASDAQ: JMBA),this afternoon the company reported financial results for the fiscal year and fourth quarter ended December 29, 2009. The results showed the companies continued focus on its strategic priorities. They have continued to cut costs, focus on a service culture, implement food into the menu, diversifying into consumer licensed products, and continue franchise development.

Strategic Priority Highlights

1. Major programs that strengthened its new business model with the extension of oatmeal to more than 600 locations, the introduction of new food items in more than 370 locations, the testing of hot beverages, the licensing of five new consumer products and the retail launch of one licensed consumer product.
2. Expanded efforts in franchise development and re-franchising resulting in the opening of 25 new stores and refranchising of 27 units.

Financial Highlights

1. Both yearly and quarterly revenues were down; 12.1% and 9.8% respectively
2. Company-owned comparable store sales were down for both the year and 4th quarter; 10.3% and 5.3% respectively
3. $28.8M cash on hand with no debt
4. Re-franchised 47 stores, about 1/3 of their 150 store goal by 2010

Jamba, like many of the consumer driven businesses, faced lagging sales this quarter and year in general, however, they are also positive about 2010. The company is extremely upbeat about their new hot oatmeal and hot blended beverages. They have also expanded their products to include several licensed products such as a juice blender, trail mix and apparel.

Management was not specific when in 2010 sales will turn positive but they have confirmed that they expect sales to turn around at some point in 2010.

Jamba did a good job at focusing on its strategy this year turning a tough year into an extremely productive year.