So we bought into Jamba at $1.14 (up 100% +) in late 2009 and I have been getting questions as to what to do. The answer is easy, we hold. The Jamba story is still unfolding and we sit on our gains and wait for it to happen. Yes, it has taken awhile but, restaurant turnaround stories typically take 18 months or more to happen. Jamba was on death’s doorstep when CEO White took over then attempted to resuscitate itself during the worst recession since 1980-82.
Because of that, one has to give them I think a little leeway with the 18 month time frame. That being said, 2011 is the year they turn it around or flounder, no two ways about it. Press like this gets Jamba off to a nice start. No, it isn’t a magic bullet that gives them instant national attention but being on stage with those well known brands and, most importantly being the top choice is very nice.
Things are happening at Jamba. The Nestle deal rolls out in 2011 and goes national in 2012 (HT Reader Dan) and these deals throw cash right to the bottom line. JMBA had it first quarter of positive SSS in Q4 in the last two years and complete its re-franchising initiative ahead of schedule.
Everything is going in the direction we want it to……it’ll happen
