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Jamba (NASDAQ:JMBA)

Q4 2011 Earnings Call

March 07, 2012 5:00 pm ET

Executives

Karen L. Luey - Chief Financial Officer, Principal Accounting Officer and Senior Vice President

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

Analysts

Conrad Lyon - B. Riley & Co., LLC, Research Division

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

Scott Van Winkle - Canaccord Genuity, Research Division

Chris Krueger - Northland Securities Inc., Research Division

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

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Jamba, Inc. Fourth Quarter 2011 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Karen Luey, the 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 D. White, our Chairman, President and CEO. During today's call, I will review our fourth quarter financial results. James will follow with an update on our BLEND Plan 2.0 initiative and accomplishments. 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 March 28, 2012.

This conference call will include forward-looking statements within the meanings of the Securities law. These forward-looking statements will include statements about the company's strategic priorities, 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-K. 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 it over to James.

James D. White

Thank you, Karen, and welcome to our call.

I am pleased with our fourth quarter results and overall 2011 performance. We delivered our BLEND Plan objectives and moved from the turnaround to transformation phase of our effort. With our BLEND Plan 1.0 strategic initiatives accomplished, we are now focused on our BLEND Plan 2.0 that will grow Jamba from a smoothie company to a globally recognized lifestyle brand.

Let me review just a few of our accomplishments in Q4 in 2011.

Our comparable sales per company-owned stores increased for the fifth consecutive quarter, improving by 7.7%. For the full year, company-owned stores increased by 4%. Comparable sales were also positive for our franchise stores for the sixth consecutive quarter. The fourth quarter increase was 3.3%. Systemwide comparable store sales increased by 3.7%, and we had positive comps in all 4 day parts, driven by product innovation in the breakfast and evening day parts. This marks our first fiscal year of comparable store sales growth since 2007.

Our store margins continue to improve significantly, driven by reduced store expenses. Internationally, we accelerated franchise growth opening 16 locations in South Korea and 1 each in Canada and the Philippines, our first stores in those countries. We also achieved significant growth with our consumer products. At the close of 2011, we had 10 license agreements with roughly 30,000 points of retail distribution across all 50 states, and our balance sheet remains strong.

I will return to provide additional perspectives on our accomplishments, our new BLEND Plan 2.0 strategic initiatives and our outlook for 2012. Now I'll ask Karen to review our financials.

Karen L. Luey

Thank you, James. For fiscal 2011, we have accomplished our financial goals that we outlined 1 year ago, which were to deliver positive comparable store sales of 2% to 4%, deliver adjusted operating profit of 18% to 20% and control general and administrative expenses consistent with 2010 levels.

Our overall financial health has improved significantly. We have a clean balance sheet, cash of over $21 million and no debt. With the recent acquisition of Talbott Teas and our new smoothie introductions, we have started to improve on the seasonality of our business.

For the full year, we reduced our net loss by half as our business continues to strengthen. On a GAAP basis, the net loss was $8.3 million or a loss of $0.16 per share for fiscal 2011 compared to a net loss of $16.7 million or a loss of $0.35 per share from fiscal year 2010. On a non-GAAP basis, adjusted for nonroutine items, our loss would have been $6.6 million or a loss of $0.14 per share. We have included a supplemental schedule that reflects our results adjusting for nonroutine items. Those nonroutine items include charge of $1 million related to final settlement and expenses of existing litigation and $0.7 million expense included in other operating net related to the prior years.

We also recorded performance-based compensation expenses during the year of $2.9 million for meeting or exceeding our strategic and financial targets. Our comparable store sales results for 2011 increased across the system. Company comparable store sales results increased 4%, franchise comparable store sales increased by 3.4%, and overall, our systemwide comparable store sales increased to 3.7%.

In 2011, store-level margins improved by 340 basis points to 15.6%, driven by the discipline and focus on 4-wall store expenses and on our company comparable store sales increase of 4%. Of significance is the 190 basis point improvement in labor where we utilize technology to focus on controlling both rate and hours, and the 110 basis point improvement in cost of sales as we continue to leverage our supply chain expertise. On a dollar basis, the improvement over 2010 was $2.5 million to $33.6 million from $31.1 million.

The increases in store-level profitability and franchise revenue, along with meeting our CPG revenue target of $1 million contributed to the 500-basis-point improvement in adjusted operating profit. Adjusted operating profit increased to 19.9% or $45.1 million from 14.9% or $39.2 million compared to 2010.

For the fourth quarter, on a GAAP basis, we reduced the net loss by $2.4 million to $9.8 million or a loss of $0.15 per share compared to a net loss of $12.2 million or a loss of $0.21 per share for the prior year's same quarter. On a non-GAAP basis, adjusted for nonroutine items, our loss would have been $8.5 million or a loss of $0.13 per share. Those nonroutine items were charges of $0.8 million related to the final settlement on the existing litigation and $0.6 million included in our other operating net related to prior years. We also recorded performance-based compensation expenses during the fourth quarter of $2.4 million.

Total revenue for the fourth quarter increased 5.4% to $44.3 million and Company Store revenue increased 4.3% to $41.6 million as compared to the prior year's same quarter. In Q4, the company comparable store sales increased 7.7% and franchise comparable store sales increased 4%. The focus that we have had on driving more profitable transactions and traffic to our stores are reflected in our comparable store sales improvement. The results of our company comparable store sales increase of 7.7% for the quarter includes a 410 basis point increase due to average check, resulting from the price increase taken in the beginning of the second quarter, increased attachment and more efficient promotional discounting.

Company comparable store sales also included an overall 360-basis-point increase in traffic due primarily to increasing the number of frequent users. This was achieved through our menu expansion and our plan to become a more habitual occasion to our consumers. Menu items such as oatmeal, breakfast wraps and the new Fit 'n Fruitful meal replacement smoothie are a few examples. We see this trend continuing in the first quarter of 2012. This is the first time in 11 quarters that the company has reflected positive traffic.

As important, we continue to reflect positive same-store sales in all 4 day parts. Our attachment rate for beverage with another item was approximately 22.2% for the fourth quarter of 2011.

Our franchise and other revenue for the fourth quarter increased by 24.8% to $2.8 million compared to $2.2 million from the same prior-year quarter. The increase was attributable to royalties related to the increase in number of franchised stores and increase in franchise comparable store sales. The number of retail stores in which Jamba-branded consumer products are sold increased to approximately 30,000 at the end of fiscal 2011 from about 10,000 at the end of fiscal 2010.

We continue to make significant progress in improving our 4-wall store margin, which includes company revenue less total company store expenses of cost of sales, labor, occupancy and other store operating expense. Our store-level profitability improved by $5 million to a profit of $2.7 million for the fourth quarter of 2011 compared to a loss of $2.3 million from the prior year. 2011 marks the first time since becoming public we have had positive 4-wall results in the fourth quarter. Our improvement in 4-wall store profitability for fiscal 2011 improved to $33.6 million or 15.6% from $31.1 million or 12.2%. This can be attributed to increases in comparable-store sales and the disciplined action taken at the store level to manage cost of sales and labor.

As a result of the strong performance by our stores and increased franchise revenue, our adjusted operating profit improved to $5.5 million from a loss of $0.1 million in the same comparable quarter.

Now let me discuss general and administrative costs for the quarter. Excluding nonroutine adjustments and performance-based compensation, we were right in line with our guidance for the year and, as a result of meeting or exceeding our strategic growth and financial targets, we recorded performance-based compensation expense of $2.4 million. As a result, general and administrative expenses increased to $11.9 million.

For the full year, our effective tax rate is a benefit of 3.9% and we continue to have a full valuation allowance against our deferred tax assets. Our cumulative federal net operating loss at the end of the year was $160 million, and we do not expect to be a federal taxpayer this year.

Our balance sheet remains strong with $21 million in cash, cash equivalents and restricted cash, and no debt at the end of the quarter. Our capital expenditures for the quarter were $2 million related to maintenance capital, revenue-driving initiatives and investment in our information technology platforms. We recently announced our agreement with Wells Fargo Bank for a senior revolving credit line. We have no plans to draw on the line and have adequate cash to fund our working capital needs.

At the end of the quarter, we had 168,389 convertible shares outstanding. As we announced in our earnings release, beginning with fiscal 2012, we will change the ending date of our fiscal quarters. Each quarter will have 13 weeks, resulting in a 12-period fiscal year. Prior to fiscal 2012, the first quarter had 16 weeks and the 3 subsequent quarters had 12 weeks. The company's year-end continues to be the Tuesday closest to December 31. The supplemental tables included in our earnings release will show the pro forma consolidated statement of operations in which the results of fiscal 2011 are presented on the 13-week quarter basis.

The change in fiscal quarter end is intended to improve comparability with industry peers on a quarterly basis, align Jamba's reporting cycle with a more traditional fiscal calendar and provide more consistent quarter-to-quarter comparisons. The new quarter end dates for fiscal 2012 are set forth in the table shown on the earnings release.

With that said, I'd like to turn the call back to James.

James D. White

Thanks, Karen. Over the past 3 years, we have focused on achieving the strategic priorities of our 2009 BLEND Plan 1.0. Those priorities were designed to reduce costs and expenses; ensure a customer-first, operationally-focused service culture; expand our menu across day parts; accelerate franchise growth; and build a robust consumer products portfolio through licensing.

As I said earlier, we met those Plan commitments. Our efforts to reduce and eliminate unnecessary costs and expenses resulted in the elimination of more than $25 million in store-level costs. We expanded our portfolio of on-trend innovative beverages and food offerings across all day parts. These included new lines like our Fruit & Veggie and Probiotic Fruit and Yogurt smoothies, our Fruit Refreshers made with coconut water and, most recently, our Fit 'n Fruitful smoothies with Weight Burner. We introduced new breakfast offerings in almost 300 stores and launched Whirl'ns Frozen Yogurt in 157 stores.

We focused on driving more profitable and efficient transactions with compelling and relevant and engaging marketing campaigns and promotions. We also deployed a new customer satisfaction program that enabled us to take immediate actions to address customer concerns.

Our comp store sales, systemwide, have turned the corner and are growing nicely. The same-store sales momentum that we saw in Q4 has continued in the first 9 weeks of Q1.

We're building a very robust consumer products platform that gives Jamba a retail presence, which grew this year from 10,000 to 30,000 points of retail distribution. We completed a refranchising initiative of 174 stores, which changed our business model, shifting Jamba to a heavier focus on franchising, with 60% of our 750 stores now being franchised units. We also launched a new growth platform called JambaGo, an innovative express self-service offering of pre-blended smoothies and other Jamba-branded items that will enable us to expand our brand presence, particularly in high-volume captive menus such as schools, stadiums, event centers where high-speed service is essential.

Internationally, our partners plan to open 320 stores over the next 10 years. The accelerated development of domestic and international franchise and nontraditional stores resulted in the opening of 80 new locations in 2011. So 2011 was an important year for Jamba. The promises we made have been kept, but we feel the transformative work has just begun. We will strengthen and grow our iconic brand which, as a restaurant concept, has been a pioneer in the forefront of the health and wellness movement since we opened our first store in 1990. Our BLEND Plan 2.0, which we launched last month is the blueprint for that growth. It provides continuity with the previous BLEND Plan platforms and also extends and broadens them, and focuses our resources on accelerated sustainable growth.

The 5 growth areas are: making Jamba top-of-mind healthy food and beverage brand; embodying a healthy, active lifestyle in our stores and throughout our entire enterprise; accelerating global retail growth through new and existing formats; building a global CPG platform in Jamba-relevant categories; and pursuing new ways to reduce costs and increase productivity.

While I won't go into detail on many of the plans, actions and initiatives that back each of these areas, I'd like to give you a feel for some of the things you can look for this year from Jamba.

Make Jamba top-of-mind healthy food and beverage brand will require exceptional innovation to differentiate the brand and drive both traffic and loyalty. And you can look for us to bring out several smoothies, beverages and foods across all day parts. For example, we announced this week we are expanding our menu to double our offerings of fresh juices. This is a category that is synonymous with Jamba, and we are the leaders in healthy nourishment. This will be the beginning of our development plans which call for the integration of juice bar concepts into several key geographic areas, including New York City.

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 offerings. As an integral part of this effort, we want every aspect and every element of Jamba to communicate our company's DNA. Jamba is all about healthy, active living and having fun, and enjoying delicious good-for-you nourishment.

We started with fresh fruit, natural ingredients and blenders, and we're living and building on that heritage today. Our stores, our employees, everyone and everything throughout the Jamba system will embody healthy living. That's the top priority for us, and we'll extend that message into the community through our marketing programs and partnerships. Our efforts to accelerate our global retail growth will have many dimensions. Certainly, international growth will continue. As I said, there are 320 units in the pipeline currently, and we'll be looking for opportunities in other markets. We believe there's potential for 1,000 units internationally.

In the U.S. to facilitate franchise growth, we will build a more integrated business model that will give qualified franchisees the opportunity to become master developers. Earlier this year, we opened our first unit in Kentucky, our 26th state. There is more open space to fill in, and we will test new concepts including JambaGo, our limited menu service wellness centers, that we think also can be expanded to well over 1,000 units over time. For 2012, we believe the opportunity is in the range of 400 to 500 units for JambaGo to be open for fiscal 2012, primarily in K through 12 venues.

The revenue stream for this year will not be material to the overall revenue for the company. Our store of the future work is designed around having every element of our stores embody healthy, active lifestyle.

We also continue to build our consumer-products platform. As I noted at the close of 2011, we had 10 license agreements in place with 30,000 points of retail distribution. By the end of next year, we're looking for distribution of 50,000 retail points. We will be working to secure the long-term success of our existing CPG platforms, as well as launching the brand into new categories in the U.S. And we'll also pursue opportunities for global licensing and opportunities to joint venture or co-manufacture in the CPG space. Plus, we'll explore the prospect of small bolt-on acquisitions like our recently announced acquisition at Talbott Teas.

And of course, we will continue to be focused on reducing costs and driving productivity enhancements. We plan to build our supply chain into a global competitive advantage, leveraging new and existing relationships to drive greater efficiencies and effectiveness in supply, sourcing and distribution. The savings that we realize by eliminating unnecessary costs will enable us to invest more in our growth initiatives.

So 2012 will be another very important and, I believe, successful year. We finished last year with strong comp store sales growth, and we're seeing that momentum carry forward into the opening of this year. We see good progress ahead and are affirming our guidance. We expect comp store sales growth of 3% to 4%; adjusted operating profit margin of 19% to 22%; 40 to 50 new stores and the U.S., plus 10 to 15 new stores at international locations, this excludes JambaGo units; G&A will be flat with 2011, excluding performance-based compensation; and CPG licensing revenue will grow to approximately $3 million.

As I said, I'm especially pleased with Jamba's results and achievements. We are building on our heritage and transforming Jamba into a healthy, active lifestyle brand. We have a very talented management team that works well together and we now have a winning business model guided by a strategic roadmap that will drive 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. I would also like to thank the Jamba team members, franchise operators across the system for their continuing efforts and commitment to building and transforming our company and delivering outstanding service to our customers.

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

Question-and-Answer Session

Operator

[Operator Instructions] Our first question is from the line of Greg McKinley with -- I'm sorry, first question is from the line of Conrad Lyon with B. Riley & Co.

Conrad Lyon - B. Riley & Co., LLC, Research Division

First of all, nice job driving check in traffic. Question, can you talk about really what's moving that? I mean, I know you talked about attachment in non-smoothie items. I just want to get a better feel of really what's kind of going on here. It really looks like an inflection point and I just want to see if your consumers just are simply using you differently.

James D. White

I'd make a couple of points, and I think you hit the nail on the head. One of the things that we found as we've started to innovate around the menu, especially our smoothie portfolio, we've started to drive more habitual traffic on things like our oatmeal platform, all the items that we've added to our breakfast platform, including the fresh juices that we offer. And if we think about our core smoothie offering, the innovation that we've done over the course of the last 18 months is really bringing customers back in. More recently, as I look at our Fit 'n Fruitful, we're seeing that consumer being much more habitual, and that's starting to happen across items like our Fruit & Vegetable smoothie platform that we launched earlier in '11 and also the blends that we launched at the start -- at the beginning of last year. All those products have our consumers coming in more often.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Got you. And James, I think you mentioned something about what you're seeing first 4 weeks to date, I didn't catch that, if you go mind repeating that.

James D. White

The point I'd make is we're 9 weeks into this quarter and we're seeing trends that would be very consistent with the way we finished 2011.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Okay. Great. Question regarding the extra week. Obviously, those days in that extra week were pretty powerful. Is that something that just traditionally you see year-over-year or was there any type of weather in there that you think that impacted that?

Karen L. Luey

So Conrad, there might have been some kind of weather in that 53rd week, but you know that we did not count that 53rd week in comp.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Right. Exactly, comps are comps, which...

Karen L. Luey

Comps are comps. Exactly. So there was a little bit of weather in that 53rd week, impact of $3.6 million for that week.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Got you. Okay. Good to hear. Question about just the stock-based comp. Can you remind me what it was in terms of just -- is it all noncash or was there any cash in there?

Karen L. Luey

So there was some portion of -- included in G&A there were some portion of stock-based compensation, but you might be referring to the performance-based compensation charge that we took, that was an all-cash charge.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Okay. Got you. James, I think you mentioned something about the JambaGo, I caught a little bit about it, but I think you said, was it 400 to 500 units this year, is that what I heard?

James D. White

Our expectation today is that we'll have 400 or 500 JambaGo units installed in 2011. We think the potential is well beyond that, obviously, really early innings for that vehicle, and the vehicle is very focused on K through 12.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Okay. So in 2012. Okay. And I think you said it wasn't going to be material. Is that just simply because most of these will open later in the year or just the revenues just take time to build up?

James D. White

There'll be a building process and it'll happen really across the year.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Okay. Also, I think you mentioned something about the retail points of distribution climbing about 50,000. Just remind me, at what point do you think that you'll reach that?

James D. White

For CPG, by the close of 2012, we'll move to 50,000 points of retail distribution and the royalty revenue, it will be about $3 million. And the translation I'd make for you, that would represent about $150 million in retail sales.

Conrad Lyon - B. Riley & Co., LLC, Research Division

Okay. In terms of the outlook before now, you said you're going to have $3 million in CPG revenue before. Did that entail 30,000 locations before or was that already being factored in that you're going to have that many points of distribution?

James D. White

The fact that we finished at 50,000 of retail distribution was factored into the $3 million in royalty revenues previously.

Operator

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

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

Could we talk a little bit, I guess some margin items, I wanted to better understand. Cost of sales, your progress there really seemed to accelerate each of the 4 quarters this year in terms of year-over-year margin expansion. And obviously, you had some nice accomplishments around labor cost control as well. Can you help us understand specifically, what are you doing there? In what innings are you with some of these initiatives? Maybe quantify how you sense those types of expenses will perform as a percentage of sales looking into 2012 given the progress you've made?

James D. White

So I'll start with the cost of goods in line. We have been diligent over the course of the last 3 years of trying to bring those costs down. We have taken 300 or 400 basis points out of that line item over the course of the last 3 years. We pegged 2012 to be in the range of 24% to 25%. So even with the headwinds that we face, the global sourcing work that we've done, we've made our formulas more flexible, we source on a global basis and we've got just a great team diligently working this area. We've also streamlined, moving to some larger distribution partners. So we've, in 2011, started to work with both U.S. Foodservice and the Sysco division SYGMA, and both of those have allowed us to really bring higher-quality service to our stores. But also take cost out of the system, and you'll see us continue to work down that path. Again, the way I would have you to think about our cost of goods line is we'll stay in the 24% to 25% range, which we've talked about previously. And as it relates to labor, we've made the most progress there starting in the middle of Q2 over 1 year ago, we really started to take down, really leveraging the technology and all the investment that we've made in training of the teams, so we were taking 150 to 200 basis points out of the labor line. And you'll see that lap at least through the first quarter of 2012. Karen, is there anything you'd add there?

Karen L. Luey

I think you captured it all. I think, last year, or for '11, we ended at 31.6% in the labor line. And our goal for this year is going to be in the range of 30% range.

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

Okay. Now getting back to the cost of sales for a second. So it sounds like a lot of behind-the-scenes operational initiatives are improving your costs. And is the message, "We're actually experiencing commodity inflation but the way we're procuring our products is offsetting that", is that what you're saying?

James D. White

Yes, we've been hard at it through the recession to really offset any of the headwinds.

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

Okay. And then on JambaGo, I think these are all intended to be franchise development. Is that correct? And then secondly, can you help us understand what type of investment level is required by a franchisee to build one of those?

James D. White

JambaGo is more -- I would describe it as a licensing vehicle. I would characterize our business model as more a blade-and-razor business model where the system is installed and then there is a razor blade, if you will, in the form of the product that would go into the location. The investment for us is almost zero.

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

Okay. Almost net -- zero net investment to the company?

James D. White

Yes. For us, because we're leveraging our IP.

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

Okay. So these would be in what? Schools or what? Can you help me understand where we'd actually see this?

James D. White

You'd see JambaGo in schools. Today, we've got over 30 units that are in schools across the country at this point. You'd also see us at places like the Long Beach Aquarium, is just another example.

Karen L. Luey

Convenience stores and ...

James D. White

Yes, there are a few convenience stores.

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

Okay. So you're just putting up some systems in an existing facility rather than building out a new store in which this would operate, and that's why the cost is basically de minimis?

James D. White

Right. And it's really a system that would complement, really, other food offerings. So as an example, in schools, the food director would leverage us as a complement to the menu to bring healthier solutions. In a c-store, they'd leverage it in their food courts as a complement to bring healthier food solutions to that offering. In the case of the Long Beach Aquarium, it would just become a part of their food court offerings.

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

Yes. Okay. Now in terms of the food attachment rate, I think you said it was 22% in the quarter. Maybe just give us a benchmark. What was that 1 year ago or so, so we can measure how that's changed?

Karen L. Luey

Yes. Greg, 1 year ago, that was running about 26%. And 1 year ago, we had a different variety of promotions and partner and pairings than we have this year, and that's what caused the rate to be higher last year in 2010.

James D. White

But I think the better benchmark is if you look at the whole year in total, we improved the attachment by 300 or 400 basis points across 2011.

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

Okay. And then, I guess last question regarding your menu. You talked about integration of juice bar concepts into Jamba stores. Is that going to be the biggest thing we see fresh in the stores this year? Maybe could you tell us a little bit more about how we should we expect that to look.

James D. White

Well, you'll see us emphasize our fresh juice offering. Again, we've got 700 units today that have fresh juice, fresh orange juice, carrot juice, wheatgrass, and that's a been really across the history of Jamba. So you'll see us really re-emphasize that part of our history. We announced earlier this week that we were doubling that lineup, and you'll see us continue to work in that space across the year, and it's just another part of our -- really improving our offerings across day parts. But this is an important part of our heritage and gives us, I think, a unique platform in the health and wellness space.

Operator

Our next question is from the line of Scott Van Winkle with Canaccord Genuity.

Scott Van Winkle - Canaccord Genuity, Research Division

Karen, I apologize to have you repeat some of the stuff in the comps but I missed it. Can you give us the transaction and ticket? And then, if attachment was down year-over-year because of last year's promotions and different partners, was that actually positive to the ticket?

Karen L. Luey

So let me give you the breakdown of the comps. So that's 7.7% company comps that we recorded in Q4; 360 basis points of that was due to traffic; and then 410 basis points of that was due to average ticket increase.

Scott Van Winkle - Canaccord Genuity, Research Division

And did the non-smoothie or non-beverage attachment contribute to that average ticket?

Karen L. Luey

It did. It did. So we were attaching a lesser volume but at a higher price point.

Scott Van Winkle - Canaccord Genuity, Research Division

Got you. Got you. And then on the JambaGo, 2 questions. One, James, do you produce the actual product, I mean, it's going into a pouch, is that something that you do at the Jamba location or is a third-party doing that for you?

James D. White

Third-party. It's a proprietary blend.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. And of those 400 to 500 units this year, is there any major c-store partnership that's driving a big chunk of that?

James D. White

Really, the focus is K through 12 schools is where you'll see us place most of those units, but we do have a pilot set of stores with Hess. There are 5 Hess locations that are open in Florida today.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. I mean, one of the things we talked about down at the ICR conference was lower price points on some of your beverage lines. It's been 1.5 month since then, has there been an impact on the beverage lines that at lower a price point?

James D. White

Scott, could you restate the question, I'm not sure I...

Scott Van Winkle - Canaccord Genuity, Research Division

Yes. So one of the things I understood was that you had lowered prices on some of your non-smoothie beverages. I was thinking like tea and things of that nature. Is that the case or I have that correct? And then second, has that had any positive impact in the attachment of those products?

James D. White

Really too early to tell, but we have rolled back the prices on our hot beverages, but really early days.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. And then on the BLEND Plan 2.0, is there 1 facet of that this year that you think is going to have the most significant relative kind of near-term impact?

James D. White

I think you'll see us really move to a growth company. I mean, if we, in fact, add 40 to 50 units in the U.S. and add 10 to 15 units internationally and the first time we've talked about the JambaGo growth was on this call 400 to 500 units, that will be really the driver for this brand moving forward.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. And then lastly, on the CPG side, this is kind of my estimation that the vast majority of the revenue this year was attached to the Inventure smoothie kits, tripling next year, I certainly think those smoothie kits are going to be big but not driving the majority of that growth. Is there a product that we haven't seen yet that is going to really contribute to that or is there 1 or 2 sitting in a portfolio that are about to catch a gear?

James D. White

I think you'll see us just continue to steadily build the portfolio moving forward. We continue to be excited about the Jamba Energy drinks and you'll see us build distribution across the year on Jamba Energy, the Jamba novelty bars are one of my favorite products in the portfolio. We will continue to steadily build that business. I think you'll see a balanced improvement really across the portfolio that will result in the full year kind of tripling of revenue.

Scott Van Winkle - Canaccord Genuity, Research Division

Okay. And then I'm -- sorry, I -- just one more question for Karen. In the guidance for operating income -- cash operating income. If I heard the number right on labor, it sounds like your improvement in labor -- is it more than the improvement in the overall cash operating income? Did I get those numbers wrong?

Karen L. Luey

For 2011?

Scott Van Winkle - Canaccord Genuity, Research Division

For 2012. Your expectations for improving labor sounded pretty significant. Is that the primary driver of your improvement in the guidance for cash operating income as percentage of sales?

Karen L. Luey

Well, I would say that's a piece of it, but Scott, just to make sure I'm clear, the percent of labor to total revenue, total company revenue for 2011, was 31.6%. And we're planning for the number in 2012 to be somewhere in the neighborhood of 30%, so 160 basis points of improvement.

Scott Van Winkle - Canaccord Genuity, Research Division

Sorry, I thought it was more like 300. I must have misheard.

Operator

[Operator Instructions] Our next question is from the line of Chris Krueger with Northland Capital Markets.

Chris Krueger - Northland Securities Inc., Research Division

You talked a bit about the same store sale trends heading into the new year that they remain -- have pretty good momentum. If you look back to last year, I think many parts of the country had an unusually, really ugly winter weather season, and this year many parts have had almost the exact opposite where it's been very mild. Do you think that's -- I mean, can you put a number on that, what that might have meant to your comps? Or don't you really like to look at it that way?

James D. White

Yes. I mean, there's -- certainly, we had favorable weather, but the 2 points I'd make is traffic was positive in the fourth quarter and continues to be positive in this first quarter and even if you strip away the positive impact of weather, we would clearly be positive.

Karen L. Luey

Significantly positive.

James D. White

Right.

Chris Krueger - Northland Securities Inc., Research Division

Okay. Good. Just one other question on the Nestlé energy drinks, I have noticed on a Facebook Page that the Jamba Energy brand has, it states to -- "Get them as soon as they are available nationwide in 2012." I mean, is there a timeframe on when we're going to start to see them in more parts of the country or is that just getting ahead of itself on the Facebook Page?

James D. White

It might be. We might have some fans getting ahead of themselves, but they are available nationwide in Jamba locations only today. You will see us continue to build distribution smartly on the Jamba Energy, and we like the way that business is performing today.

Chris Krueger - Northland Securities Inc., Research Division

Any feedback from the Northeast region for the locations that Nestlé has distributed?

James D. White

Yes. It's been positive and that's why you'll see us building distribution in 2012.

Operator

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

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

I wanted to talk -- in the past you've talked about menu innovation being one of the things that's driving your positive same-store sales. I'm just wondering if you have some sort of breakdown as far as what percent of your sales are coming from new products?

James D. White

That's actually a good question. We don't -- I don't think we have that. That's probably -- that's an answer I'll promise to have ready for you the next time through. The point I would make, if we look at the innovation that we drove into both the breakfast day part and the evening day part that's really added to the overall momentum. We had all 4 day parts that we finished the year with positive comp store sales, and that's really the first time in 4, 5 years at this point that we've shown that balance of performance across all day parts, led by the breakfast day part, which was up 6.4%, and that's about 20% of our overall sales in terms of the day parts.

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

And then on the JambaGo, you've had a test for a number of months now, I was wondering if you have an idea of what like a single kiosk will do in a given year as far as like retail sales?

James D. White

We don't. We'll probably start, as we have more data points, we'll start having a way to describe how to think about a JambaGo unit vis-à-vis a store location, but the framework I'll have you to think about, it'll be multiple JambaGos would represent a single store, but it's too early to tell at this point.

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

And then I was wondering if you have like the -- for 2011, kind of like the breakdown between the traditional and nontraditional stores as far as the average sales per store?

James D. White

Karen, do you have that?

Karen L. Luey

Let me. So Kurt, it varies between partner and company-owned store. But I would say, on average, the AUVs for nontraditionals are running about -- I'm going to say $550,000 per year, and the AUVs for a traditional Jamba store are about $665,000.

Operator

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

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

So the stores that you plan on developing in the system this year, how many of those are company-owned? How many of those are franchised? And can you give us a sense for how we should expect those to open as the year progresses from a timing standpoint?

James D. White

Greg, out of the 40, 50 stores that we'll open this year, 90-plus-percent of those will be franchise locations. So less than a handful of company stores will open this year. And Karen, can you talk about the flow of those stores?

Karen L. Luey

Yes. I would say, Greg, similar to last year, we're targeting the majority of the stores to open Q2 and early Q3.

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

Okay. And in terms of your financial guidance here, how does it sort of back down into a consolidated EBITDA number, all of those metrics? Do you care to share an EBITDA threshold that this guidance targets us toward?

James D. White

We typically haven't done that. But what we've given you is an adjusted operating profit margin, which is 19% to 22%. And again, that's up 200 basis points or so from 1 year ago.

Karen L. Luey

And then on top of that, we've given you guidance for G&A, which would be flat to current year's G&A. So you'll be able to get to the consolidated EBITDA number after that, after subtracting G&A.

Operator

And ladies and gentlemen, that is all the time that we have for questions. I'd like to turn the call back over to Mr. White for closing numbers.

James D. White

I'd like to thank everyone for joining us on the call. We look forward to visiting with you again in the first quarter. We, again, are off to a great start for 2012, and I look forward to updating you with the details on the first quarter. Thank you.

Operator

Ladies and gentlemen, that does conclude our conference for today. We would like to thank you for your participation. You may now disconnect.

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