Jamba Posts Drop in Q2 Same-Store Sales

Juice and smoothie manufacturer Jamba Inc. reported Monday that Q2 same-store sales fell 3.3%, below forecasts, on a drop in customer traffic in California. Sales, however, came in ahead of expectations. Total revenue was up 14.1% to $89.6 million from $78.5 million in the year-ago quarter. Analysts were expecting $85.8 million. The company, which has 645 stores, is cutting its planned franchise openings to 30 from 50 for 2007. Jamba opened 27 stores during Q2 in markets across the country, including Oregon, Florida and Las Vegas. The company launched the Functional Smoothie product line during the quarter, which is "designed to provide health and lifestyle benefits such as a healthier heart, increased immunity, and weight management." It is also testing a breakfast line intended for a 2008 launch. Quarterly earnings will be posted on August 30.

Sources: Press release, Forbes, Reuters, MarketWatch
Commentary: Jamba Growth, Sweet Revenues and Profits • How to Invest Like Blue Ridge Capital's John Griffin
Stocks/ETFs to watch: JMBA

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