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Executives

Karen L. Luey - Chief Financial Officer, Principal Accounting Officer, Chief Administrative Officer, Executive Vice President and Secretary

James D. White - Chairman, Chief Executive Officer and President

Michael W. Fox - Former Senior Vice President, Corporate Secretary and General Counsel

Analysts

Scott Van Winkle - Canaccord Genuity, Research Division

Conrad Lyon - B. Riley Caris, Research Division

Chris Krueger - Northland Capital Markets, Research Division

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Kurt M. Frederick - Wedbush Securities Inc., Research Division

Jamba (JMBA) Q1 2013 Earnings Call April 30, 2013 5:00 PM ET

Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Jamba Incorporated First Quarter 2013 Earnings Conference Call. [Operator Instructions] This conference is being recorded today, Tuesday, April 29, 2013. I would now like to turn the conference over to Karen Luey, Executive Vice President and Chief Financial Officer. Please go ahead.

Karen L. Luey

Thank you, operator, and good afternoon. With me on today's call is James C. White, our Chairman, President and CEO. During today's call, I will review our first quarter financial results. James will follow with an update on our BLEND Plan 3.0 initiative. We will then open up the call for questions.

I would like to remind all listeners that this call is being broadcast and recorded live over the Internet at jambajuice.com. The webcast is available on our website and a replay will be available via telephone until May 21, 2013. This conference call will include forward-looking statements within the meanings of the securities law. With these forward-looking statements, we'll include things about the company's strategic priorities and certain statements of our expectations and plans. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements that are contained in the company's filings with the SEC, including the Risk Factors section in our Form 10-Q. The company does not assume any obligation to publicly release any revisions to the forward-looking statements discussed during the call.

With that said, I would like to turn this over to James.

James D. White

Thank you, Karen, and welcome to our call. I'm very pleased with our first quarter results. The momentum that marked our performance in 2012 continued throughout the quarter, again, signaling our ability to deliver sustained accelerated growth. I'll highlight some of our accomplishments and then expand on a few of them later.

Company-owned comparable store sales increased by 3.6% for the quarter compared to very strong prior year period. In fact, the combined increase in same-store sales was 15.3% for the 2 years on a stack basis.

The systemwide comparable store sales for the quarter rose 1.3% against an 11.6% increase for the prior year period. Total revenue for the quarter increased by 3.8%. Net loss for the quarter was reduced from $1.5 million for the prior year period to $1.2 million or $0.02 per share for Q1 this year. Eight new stores opened in the U.S. and 6 in international markets, plus we added 144 JambaGo locations served during the quarter.

Our new franchise master development agreement for Mexico opens a new international market for Jamba, where we will develop 80 stores over the next 10 years. And revenue from our Jamba-branded consumer products grew solidly from $400,000 for the prior year quarter to $1 million this year. And as you know from our filing, our Board of Directors has approved a 1-for-5 reverse stock split that would increase our per share price making our stock appealing to a broader range of investors. Shareholders will vote on the reverse split at our annual meeting on May 14.

I will return to provide additional perspective on our results, our new BLEND Plan 3.0 strategic initiatives and our outlook for 2013.

Now I'll ask Karen to review our financials.

Karen L. Luey

Thank you, James, the first quarter of fiscal 2013 was in line with our current expectations. For the quarter, we reduced the net loss by $0.3 million to $1.2 million or a diluted loss of $0.02 per share, compared to a net loss of $1.5 million or a diluted loss of $0.03 per share for the prior year same quarter.

We expect the quarter-over-quarter improvement in our operating income to continue for the rest of the year. We ended the quarter with cash of $23 million and no debt on the balance sheet.

Total revenue for the first quarter increased by 3.8% or $2 million to $55.1 million, and company store revenue increased 2.2% to $51.1 million as compared to the prior year same quarter. As the company store increased, average ticket was higher by 230 basis points and traffic increased by 130 basis points.

We continue to add offerings that will drive sales and increase traffic with light and lapsed users as a key component of our promotional offering. During the first quarter, we featured our Healthy Habits scratcher promotion designed to engage the consumer and bring awareness to healthy eating habits for the family. And we focused on building seasonal relevance through our Fit 'n Fruitful meal replacement and make it light platform as offerings. Our attachment rate for the quarter was 21%.

Our franchise and other revenue for the first quarter increased by 29.6% to $3.9 million compared to $3.0 million from the same prior year quarter. This was attributable to the increase in CPG revenues to $1 million from $0.4 million, and royalties related to the increase in number of global franchise stores opened in late fiscal 2012.

Our 4-wall margin for the first quarter was 14.6% as compared to 15.4% in the prior year. We continue to reinvest in our company to accelerate our growth initiatives to further extend our brand awareness through strategic marketing initiatives and explore new revenue-generating opportunities.

During the first quarter, 4-wall margin was impacted by the increased investment in brand building and marketing initiatives to raise awareness. This resulted in marketing as a percent of revenue of 4.6% compared to 3.7% in the prior year same quarter. And our promotional strategy to drive light and lapsed users resulted in an 80-basis-point increase to cost of goods. We will see improvement in our leverage of fixed cost during Q2 and Q3 and remain confident with our full year guidance of 20% 4-wall store margins for 2013.

Now let me discuss general and administrative expenses for the quarter. As the overall business continues to strengthen, we are accelerating our growth initiatives by strategically investing in infrastructure. We deployed additional resources in the later part of 2012 to capture the significant opportunities with our JambaGo platform, which grew to a total of 548 locations served by the end of the first quarter. We will have between 1,400 and 1,500 locations served by the end of fiscal 2013. We also continue to invest in research and development for other potential revenue-generating opportunities.

The first quarter reflects a tax benefit of $0.1 million and our projected effective tax rate for the full year is an expense of 11.4%. We continue to have a full valuation allowance against our deferred tax assets.

Our cumulative federal net operating loss at the end of fiscal 2012 was approximately $112 million. We can and will utilize our tax NOL to offset federal and state income taxes, although we are forecasting to be in an Alternative Minimum Tax position where full NOLs cannot be utilized.

Preferred dividends reported for this quarter was $0.5 million. This includes $0.1 million in cash paid and a noncash effect of the beneficial conversion of $0.4 million. The beneficial conversion gets amortized each quarter over the life of the preferred shares or as shares are converted. At the end of the quarter, we had 16,109 convertible shares outstanding.

Our balance sheet remains strong with $23 million in cash and cash equivalents and no debt at the end of the quarter. Our capital expenditures for the quarter were $2.9 million related to maintenance capital, investments made under our store-refresh program and investments in our information technology platform.

Our guidance for fiscal 2013 capital expenditures is a range of between $9 million and $10 million and that includes plans to open between 5 to 9 company stores, a refresh and remodel of up to 100 company locations, maintenance capital and information technology investments. With that said, I'd like to turn the call back to James.

James D. White

Thank you, Karen. When I spoke in March, we acknowledged the very tough prior year comps we were facing, though we thought our prospects for the quarter looked good and they turned out to be very good. With the 3.6% increase in comparable store sales in the face of last year's increase of 12.7%, driven by a significant increase in store traffic and average check, our efforts to reduce cost also were very good.

Income from operation improved $0.3 million for the prior year period. Our efforts to reduce cost also were very good. Loss from operations improved by $300,000 from the prior year period, reflecting company-operated store comparable sales growth and the impact of our cost savings initiatives, the operating margin also improved by 70 basis points.

We also expanded our portfolio of on-trend, innovative beverages and food offerings. We added a new tropical harvest flavor of our Fruit & Veggie Smoothie line. We debuted our first nutritionist-approved Jamba Kids Meals and we added 2 new flavors, Mango Magnifico and Apple Cherry Chill to our JambaGo offerings. We focused on driving more profitable and efficient transactions with compelling, relevant and engaging marketing campaigns and promotions. For example, we used the limited-time value promotion to highlight our Fruit & Veggie Smoothies.

We used the $1 of smoothie happy hour period to attract both light and lapsed users. We reinforced our commitment to children's fitness with $100,000 donation for play and exercise equipment through our Team Up program. And we joined the American Heart Association and several other organizations for local and regional fitness-related fundraising events.

Revenue from our platform of Jamba-branded consumer products continues to grow. During the quarter, in the U.S., we announced plans with the new franchise partner to open 15 stores in Missouri and Kansas over the next 9 years. And our plans for accelerating growth in California, which we announced late last year, were already fully sold out. As a part of this initiative, we will add up to 125 new locations. We also signed a multi-store development agreement with the San Francisco 49ers, All Star tight-end Vernon Davis. And we've got several other very exciting ventures and partnerships that will be disclosing in the near future.

Internationally, we've added Mexico as Jamba's fourth major market outside of the U.S. The master agreement calls for the development of 80 Jamba stores over 10 years with the first expected to open later this year. The total international plans for stores stands at 400. Q1 marked the first quarter of our BLEND Plan 3.0, which is the blueprint for growth. It flows from our 2 prior plans that guided us through our turnaround and transformation, taking us from a loss of $149 million in 2008 to our move into profitability into 2012. Our new BLEND Plan 3.0 focuses our resources on sustained, accelerated and increasingly profitable growth. There are many plans, actions and initiatives that back each of our priorities. I'll highlight just a few which you'll soon be seeing.

All of our marketing programs will engage both consumers and communities and satisfy the expectations that Jamba makes it easy for everyone to make the right, healthy, delicious choices. We will sharpen our marketing to make clear both the value and on-trend relevance of our offering.

In Q2, we'll be partnering with Body by Jake to highlight our fresh juice platform. Our efforts to accelerate our global retail growth will have many dimensions. Certainly, international growth will continue and as I've said, there are now plans for 400 Jamba locations and we're actively assessing other markets.

Our target of a total of 1,000 stores internationally seems very doable, and we are very active with new concept. The 500-plus current JambaGo locations served will grow to 1,400 to 1,500 by year end. Our limited menu Jamba Smoothie Stations will make it possible for co-branding, which we'll test in several locations in the Washington DC area.

As part of our comprehensive store format and design initiative, we will reimage 9 stores in April, another 24 in May and all of the 300 existing company units will be refreshed and redesigned over the next 4 years. We believe the new format and redesigns will deliver consumer experiences that will maintain our industry leadership differentiation. And based on our Q1 results and the good progress we see ahead, we are affirming our guidance for the year. We expect company-owned comparable store sales growth of 4% to 6% and store level margins of 20%; income from operations of 2.5% to 3% of revenue; CPG revenue of $4 million to $5 million; 60 to 80 new U.S. and international locations and 1,000 additional JambaGo locations.

As I said, I'm very pleased with Jamba's result and achievements. We are maintaining our heritage of building Jamba as the leading globally recognized healthy active lifestyle brand. Our talented management team and our winning business model will both enable us to achieve accelerated growth.

Before I conclude, I'd like to welcome our new partners in the U.S. and from around the world to the Jamba family. And I'd also like to thank the Jamba team members and franchise operators across the system for their continuing efforts and commitment to build and transform our company and deliver outstanding service to our customers.

I will now turn the call over to the operator so that we can open up for questions.

Question-and-Answer Session

Operator

[Operator Instructions] Our first question is from the line of Scott Van Winkle with Canaccord Genuity.

Scott Van Winkle - Canaccord Genuity, Research Division

James, last call, we talked about the comps this quarter and I think the term you used was "slightly positive" or "modestly positive" when you gave us an indication of how trends were against that tough comparison. Does this imply that March was just a bang-up month?

James D. White

I think what I say, Scott, is we improved really across the quarter. I mean, we certainly got stronger as we worked across the quarter and we started the quarter modestly positive, but we strengthened as we worked across the quarter.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. You got a lot of initiatives, everything from juice and refreshes, et cetera, et cetera, I just -- I looked at that 4 -- that comp and I just wonder how you did that against last year, particularly with weather was very favorable last year. Is there 1 or 2 or 3 things, and I know you want to say the entire Blend Plan, but are there a couple of things you can kind of pinpoint that is really driving traffic?

James D. White

Yes. I'll point to maybe 3 things. The first thing, the analytical sharpening that we talked about late last year as we moved to creating a value-oriented promotions focused on lapsed and light users. So we're dialing in from that perspective and we've got a bundled meal that we made available and we've surgically leveraged key promotions that drive both traffic and transactions. So that will be kind of the first headline. The second one would be the work that we've done really over the course of last few years around our innovation pipeline, and we continue to make significant progress around the menu and the portfolio offering. For this quarter, it would be the new addition to our fruit and vegetable platform of smoothies gaining great traction. We like the work that we're doing also related to fresh juice, but probably the most important thing that I'd point to is the significant improvement that we started to see late last year. From a store execution, it is really across our system. There is a customer service monitor that we use and you'll maybe recall when we started measuring ourselves, we would've been in the middle of the pack of 15 or 16 companies. We were #1 in this monitor for the last reported quarter, so I couldn't be prouder of the execution being delivered in our stores. So those would be the 3 things that I'd point to and you'll see those 3 things continue to impact our business across the year.

Scott Van Winkle - Canaccord Genuity, Research Division

And then another quick and I'll jump back in the queue. Karen, can you give us kind of an update of what's included in that -- the CPG revenue? I mean, you've got a tea business, you brought in half the energy drink and all the third-party royalty deals you have. Can you give us an idea what's included in that CPG business today?

Karen L. Luey

So Scott, I think it's a mixture of all 3. And primarily, if you remember what James mentioned on the call for -- at year end, there was a timing of about $1 million or so that we were shifting into 2013. Part of that was recorded in the first quarter as well.

Operator

Our next question is from the line of Conrad Lyon with B. Riley and Company.

Conrad Lyon - B. Riley Caris, Research Division

Question for Karen. You may have talked about this but COGS year-over-year, up a little bit. Was there anything in particular that caused that? Was there any fixed nature or it's just the comp or is there any kind of discounting reflected in there?

Karen L. Luey

Yes. So Conrad, we mentioned it in the prepared remarks. There was a little bit associated to some of the discounting that we did on the top line to drive the value menu as well as some of the lapsed and light user marketing initiative.

Conrad Lyon - B. Riley Caris, Research Division

Okay. And so that leads me to the next question. Going forward, given the kind of a -- I mean clearly, you have some momentum behind you with these promotions -- Mike, you ratched that back into the summer months where we might see even better flow-through?

Michael W. Fox

I think what we'd commit to is on the COGS line. You'll see us being the 24% to 25%, which is the guidance we've given all along. And we're actually very confident in those numbers and you'll see our margins expand as we move across the year. And we're still committed to delivering in our company stores 20% 4-wall margin.

Conrad Lyon - B. Riley Caris, Research Division

Okay. Other question. I know you've had this sort of special pricing with some of the smoothies on your menu. Now any clarity you can provide? It's the ones that are priced at -- I think $2.50 in my market. I don't know if all markets. How is that working so far?

James D. White

Now we like the early reaction by customers to the value -- the various value offering that are in place. And we're seeing good momentum and it's doing exactly what we hoped it would do. And we think as we continue to refine the offerings, we're only going to see more progress and really expanding the user base for the brand.

Conrad Lyon - B. Riley Caris, Research Division

Got you, okay. Any -- I guess I said this last quarter and I'll try it again, but any color you can provide on unit economics for JambaGo?

James D. White

Still, quite honestly, too early to tell. We're in a little bit over 500 locations served and the units certainly vary. I think as we get to the middle portion of the year, we'll have better, a much better handle around the economics. But we're still very pleased with the early returns. I'll give just one anecdote. We were in my hometown last week at the convention center. We'll be going into that venue permanently with a new partner in the Midwest for a robotics convention and we just had lights out results. We sold several thousand Fortune 2000 smoothies over just a course of the weekend. So JambaGo continues to be a great vehicle for us. It gives us a lot of diversity in terms of the venues that we can create opportunities for the brand and from K-12 schools to the convention center, in St. Louis to smaller colleges, even universities. So it's early to tell on the economics and we're still looking to refine and kind of scale that vehicle.

Operator

Your next question is from the line of Chris Krueger with Northland Capital Markets.

Chris Krueger - Northland Capital Markets, Research Division

Most of my main questions were already asked, but on this growth initiative for California where you are all sold out, is that primarily franchise that will open up or there's some company-owned or is it a mix?

James D. White

The way to think about it, it will be 90% plus will be franchised. Then we're sold out with the combination of existing franchise partners in our system so we're really excited. I think that's evidence that the game plan that we have in place is really working. But we also have really capable new partners being attracted to the system, so we're actually very excited about that as well. And really, the way to think about this is this really sets us up for accelerated growth as we look to '14 and beyond in terms of the pipeline.

Chris Krueger - Northland Capital Markets, Research Division

Okay. Last question. You did talk a lot of your new innovative products that you've recently introduced. If you look back maybe 12 to 24 months to new product introductions from that time frame, are there any that stand out now that you can kind of compare year-over-year that you think are contributing meaningfully to sales?

James D. White

Yes. I'd say the -- then I'd give you 3 kind of things. One is really the work that we've done around breakfast and that's anchored by our steel-cut oatmeal platform. I continue to say that's one of my favorite products in the portfolio and we've only built upon that in that breakfast day part, and that's been really an integral part of the transformation of the same-store sales story at Jamba because that's a more habitual day part. So that would be the first idea I'd leave you with. The significant focus that our innovation team has spent against our core smoothie offering to ensure that whether it is closed-end smoothie competitors, that there's nobody that has a comparable offering. To the bigger guys that are coming in with more limited offering and fill in the blanks from McDonald's to Starbucks to Burger King, that there is no way they can reach the sophistication and quality of range in smoothies of Jamba. So that would be the second big bucket. And more recently, the work that we are doing around our fresh juice platform, we couldn't be more excited. It's really early beginnings, but what we're seeing in 3 or 4 initial locations is about 40% incrementality in terms of the overall sales and when we combine that with the investments we're making around reimaging the stores, we can project at least at this point off the small base, a 300- to 400-basis-point annualized improvement. So we're really excited about those 3 aspects of the work we're doing around products. I mean, as we think about juice to a lesser extent, the stores.

Operator

Our next question is from the line of Greg McKinley with Dougherty.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

You mentioned the marketing expense was 4.6% this year versus 3.7% last year. Is that all included, I guess, within -- and I think you said that was in the context of 4-wall margins. So is that within the store operating expenses or versus G&A? Or how should we think of that?

James D. White

It would -- go ahead, Karen.

Karen L. Luey

Yes, Greg, that would be in store operating expenses on the P&L. So that would be included in our goal of a 20% 4-wall margin for the full year.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Okay. And how should we think about your marketing for bringing in these light users as the year progresses?

James D. White

You'll see us probably average out right around 4% for the full year is where -- which is moderate, too, over time. And we think that investment gives us the opportunity to continue to expand the user base for the brand in which it's a core part of the light user strategy.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Okay. And then in terms of the reimaging and adding new concept, so I'm guessing that's to sort of have the physical look and feel of the store line up with the new products. You talked about juice testing in these 3 or 4 locations. How many stores have been reimaged so far and how do they look or feel different to the customer?

James D. White

So a couple of points in terms of the reimaging. You have a more contemporary look and feel, but the stores would be one of the headlines. The other headline, you'd have significant fresh juice SKUs that you'll be able to look at which could be dramatically different. So you'd see fresh kale and beets and we've added cucumber recently and ginger. And we've gotten just rave reviews both on the look and feel and the environment of the stores, but more importantly, the products are just exceptional. And we think will be benchmark from an industry perspective at the top of the class no matter where you look. So we're excited there. We've got 2 stores that have been refreshed. We've got 1 remodel and we've got 1 additional store that would be in the new format and we'll have 75 to 100 by the time we finish up the year, but we're really excited about the early results.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

And then maybe just on that topic with adding the vegetable offering, you talked about 30% to 40% incrementality. Can you just help me understand what exactly that means in terms of an overall sales lift that these stores, where you've done the tests?

James D. White

Yes, so the context and I shared a little bit of this on the last call, so if I just isolate the Santa Monica store, which is one of the flagship locations, 3% of our sales in that store would've been fresh juice before we expanded the lineup and refreshed the store. That now stands at about 12%. But if you look at it in total, about 40% of that is incremental. And as we factor that into the overall store performance and extrapolate out, we expect a 300- to 400-basis-point improvement overall.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Okay. It went from 3% to 12% and you're saying 40% of that delta...

James D. White

Incremental.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Okay.

James D. White

But what we like about that more importantly of that consumer is a more habitual consumer. So it'll have an annuity factor over time that I would describe as much like breakfast. So the same things that make us excited about the breakfast day part and what we did with oatmeal, we know fresh juice as we build awareness. And all of this, to date, is really with no marketing in any of those locations. I thought it was just adding the new environment and the new products.

Operator

Our next question is from the line of Kurt Frederick with Wedbush.

Kurt M. Frederick - Wedbush Securities Inc., Research Division

Let's go back to just that advertising campaign you're talking about. Is that incremental advertising spend going to continue throughout 2013?

James D. White

You'll see the overall advertising and promotion spend. It'll moderate to about 4% for the full year. And that'll be slight uptick from last year's investment. But the couple of points I'd make is our analytical capabilities are much more sophisticated than they would have been 2 years ago for sure and 18 months ago as well. So it allows us to really dial in and reach consumers in a way that we haven't been able to in the past as it relates our promotional investment. And then you'll see us we're testing things like radio on a DMA-by-DMA basis this year and we couldn't be more thrilled with the healthy living partnerships that we've entered into, which will continue to expand the presence and reach of the brand.

Kurt M. Frederick - Wedbush Securities Inc., Research Division

Okay. And then on the -- you mentioned also the limited Smoothie Station test in DC. Can you talk a bit more about that as far as timing, number of stores, just any other data you can provide?

James D. White

Yes, so we -- the point I'd make and just to remind you the Smoothie Station is limited menus, so 6 to 10 smoothies is more a kit kind of idea. It's handcrafted. And what we like about this idea and we said on previous calls that we would expect to have a 100 of these stations in the marketplace this year. It has now opened up an opportunity for us to co-brand with complementary, could be retail or could be QSR concept. What we expect to see is really one of our first pilots is in the DC area. And we'll be able to mention who the player is on the upcoming call. It's a QSR player where Jamba Smoothie will add a day part to their overall mix. And I said, it's a partner that has multiple hundreds of locations. So we'll start with a half-dozen locations, but the plan will be for much bigger penetration. Karen, would you add anything on that?

Karen L. Luey

I mean, the penetration, I think, it's key for us and finding the right co-branded partner, which I think we are doing with the testing the DC market.

Kurt M. Frederick - Wedbush Securities Inc., Research Division

Okay. So it's pretty small as far as the, say, current quarter and then if the test goes well, it could be bigger next year.

James D. White

Yes, it'll be immaterial as it relates to the quarter and the year for now. But another big idea and another vehicle for us to grow the brand.

Operator

Our next question is a follow-up from the line of Scott Van Winkle with Canaccord Genuity.

Scott Van Winkle - Canaccord Genuity, Research Division

James, there's been a couple of other smoothie-focused concept that have announced and kind of bolder expansion plans. Is there something happening here, this little race for real estate, the category heating up? Any thoughts there?

James D. White

First, the category is certainly heating up a bit, but we've been the leader in this space for sometime and the point I'd make and -- I know that a couple of concepts that you're talking about, the point that I'd make is the Jamba average volumes are 2x, either one of those competitors and I'd probably just -- Karen, I shouldn't mention it, but I'll mention the 2 competitors, Smoothie King and Robeks. We've doubled on an average unit basis their volume. So we're not much concerned about either one of those players. And one in particular, we're going to get to meet them in my hometown, St. Louis. We've got a great partner in the Midwest. And I mentioned on prior calls, the former President of Anheuser-Busch, David Peacock. He's going to build out that marketplace with us there and we happen to have a competitor, one of those 2 competitors, that are in that marketplace so we'll get to have a little bit of fun.

Scott Van Winkle - Canaccord Genuity, Research Division

Great. And then following up on the questions about juice, is there any difference in the cost of sales ratio with those juice products?

James D. White

Yes, so the juice products are going to -- obviously has a little bit higher COGS and we're working -- one of the reasons we're being very disciplined in the rollout is if the juice products in a range -- so that there's about very complementary to the overall current juice offering. And they are a nice complement to the overall mix with our smoothies. But even with the addition of slightly higher COGS, we think the more habitual nature of the products and the products they'll get attached on a blended basis to put us in the position to continue to move our margins ahead.

Karen L. Luey

And it's included, Scott, when we get our 20% margin forecast and guidance for FY '15.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. And if I could squeeze in a couple of other ones. Hopefully, they are the easy ones. The JambaGo locations that have been opened to date, can you give us an idea of what percentage of those are schools? Is it almost all schools?

James D. White

Out of the 500 plus, it is probably 80% plus would be kind of K-12 school locations. But what I'd say some of our highest-volume locations would be the work that we do with Disney kind of back of house, some of the regional airports that we launched JambaGo in and the Long Beach Aquarium would be some of the higher-volume locations.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. And then lastly, Karen, I think you said something about the tax rate for the full year. If you didn't, I'm asking for some guidance.

Karen L. Luey

Yes, Scott, tax rate estimated for the full year at this time is about 11.5%.

Scott Van Winkle - Canaccord Genuity, Research Division

11.5%, okay, I got that right.

Operator

Our next question is a follow-up from the line of Greg McKinley with Dougherty.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

As you look back at same-store sales and then the traffic element of it, can you attribute a certain portion of that to the response of these light users to this marketing campaign? I'm just wondering if you can help us understand how big of a contribution these special-priced smoothies made to sales. And then can you just remind me, is that a product that's only available during nonpeak hours or how would you characterize that?

James D. White

I think the way we would talk about our light user strategy is it's going to be a varied strategy. So a part of that strategy is embedded in some of the off-hour promotions that we started a year ago and we've continued to refine in this year's events. So the happy hours that we've launched would be one component of the light user strategy. Another component of that strategy is a bundled meal offering that we've started to launch. And you'll see -- so it's hard to tease out over time, but we know that's one of the reasons that we're able to perform and the way we performed in this quarter versus the 12.7% comp and the context is we will finish this quarter ahead most of the folks in this space.

Gregory J. McKinley - Dougherty & Company LLC, Research Division

Okay. And then last question. Karen, what was stock comp during the quarter and what do you anticipate it will be for the year?

Karen L. Luey

Greg, stock comp for the quarter was about $500,000. And for the year, we anticipated to be a little bit less than $2 million.

Operator

And at this time, there are no further questions in queue. I'd like to turn the call back over to Mr. White for closing remarks.

James D. White

I'd like to thank everyone for joining us on the call. We, again, are very pleased with the quarter. We continue to be very confident about our guidance for the full year. And we look forward to visiting with you all in the -- on the Q2 call. Thanks.

Operator

And ladies and gentlemen, that does conclude our conference for today. We'd like to thank you for your participation and you may now disconnect.

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