Jamba to Debut in Middle East

Zacks

Emeryville, Calif.-based Jamba, Inc. (JMBA) is continuously undertaking initiatives to significantly boost revenues. Jamba, which currently operates more than 849 stores, is focusing on unit expansions and franchise agreements that will help expand its global brand presence in the coming quarters.

Jamba Juice Company, a subsidiary of Jamba, is planning a massive expansion in the Middle East by launching 80 Jamba Juice units over the next 10 years. In this regard, Jamba recently formed a franchise development contract with Foodmark, an operating unit of the retail and hospitality company, Landmark Group.

The company is slated to unveil the first Jamba Juice store in Dubai by the end of 2014. Management has chosen Middle East in order to capture the increasing opportunities in the region’s growing beverage market.

Jamba is focusing on shifting its business to a more franchise-centric model which will involve less capital and stabilize cash flow generation. This will help the company to enhance the number of franchise stores in the international market.

Menu innovation remains another major growth driver for Jamba. The company continues to improve its beverage lines and launched three Whole Food Nutrition smoothies under its line-up. The company also intends to expand its juice options by adding drinks made with fresh fruits and vegetables to its offerings.

The new smoothies are available in three flavors –– Kale-ribbean Breeze, PB Chocolate Loveand Carrot Orange Fusion –– and will be made from ingredients like kale, carrots, chia seeds and Greek yogurt.

The food industry is witnessing changes in consumer preferences toward health and wellness and “good-for-you” products due to increasing health consciousness and obesity concerns. Accordingly, food and beverage companies are trying to incorporate healthier products. Jamba’s offering of an entire range of customized health drinks will help customers make healthy choices.

However, Jamba is not the only one to attract customers with healthy choices. Starbucks Corporation (SBUX) also geared up to leverage the trend by adding more healthy drinks to its line-up.

Jamba holds a Zacks Rank #5 (Strong Sell). Investors interested in the restaurant industry may consider stocks like Fiesta Restaurant Group, Inc. (FRGI) and The Cheesecake Factory Inc. (CAKE). While Fiesta Restaurant sports a Zacks Rank #1 (Strong Buy), The Cheesecake Factory has a Zacks Rank #2 (Buy).

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