Jamba, Inc. Posts Update on Refranchising Initiative
Continues Move to Asset-Light Model; Nears Completion of Refranchising Initiative
Jamba, Inc. (NASDAQ:JMBA) today posted an update of its ongoing efforts to transition to an asset-light model. With the closing of a multi-market deal announced yesterday, Jamba has completed a significant portion of its ongoing refranchising initiative.
Jamba announced the refranchising initiative at the end of 2014, with a stated goal of refranchising “up to 114” stores during 2015. The Company has significantly exceeded its initial goal with closed deals today representing 150 stores. The Company expects that deals for 74 additional stores will be refranchised for three California markets by the end of 2015 and the Chicago/Midwest market by the first quarter of 2016. At the end of 2015 we expect to be at 90%+ franchise organization.
“We are pleased with the progress we continue to make in our refranchising efforts,” stated James D. White chairman, president and CEO of Jamba. “As we move ahead on the Company’s commitment to an asset light model, these deals position us well to reach our goal of generating $60 - $70 million of cumulative cash proceeds from refranchising in 2015.”
Founded in 1990, Jamba, Inc. is a leading restaurant retailer of better-for-you, specialty beverage and food offerings, which include great tasting, whole fruit smoothies, fresh squeezed juices and juice blends, hot teas, and a variety of food items including hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads™, baked goods, and snacks. As of June 30, 2015, there were 807 Jamba® stores system-wide in the United States, of which 601 are franchise-operated stores, and 206 are Company-owned.
Jamba announced the refranchising initiative at the end of 2014, with a stated goal of refranchising “up to 114” stores during 2015. The Company has significantly exceeded its initial goal with closed deals today representing 150 stores. The Company expects that deals for 74 additional stores will be refranchised for three California markets by the end of 2015 and the Chicago/Midwest market by the first quarter of 2016. At the end of 2015 we expect to be at 90%+ franchise organization.
“We are pleased with the progress we continue to make in our refranchising efforts,” stated James D. White chairman, president and CEO of Jamba. “As we move ahead on the Company’s commitment to an asset light model, these deals position us well to reach our goal of generating $60 - $70 million of cumulative cash proceeds from refranchising in 2015.”
Founded in 1990, Jamba, Inc. is a leading restaurant retailer of better-for-you, specialty beverage and food offerings, which include great tasting, whole fruit smoothies, fresh squeezed juices and juice blends, hot teas, and a variety of food items including hot oatmeal, breakfast wraps, sandwiches, Artisan Flatbreads™, baked goods, and snacks. As of June 30, 2015, there were 807 Jamba® stores system-wide in the United States, of which 601 are franchise-operated stores, and 206 are Company-owned.
