Good Morning, Jamba

3 Recommendations

In the suddenly crowded field vying for the breakfast market, smoothie pourer Jamba Juice is getting up early to stake its claim. Jamba (Nasdaq: JMBA) is starting to test a new breakfast line of blended beverages and snacks in New York City and Los Angeles. If successful, the rest of the 640-unit chain will start rising when the rooster crows.

New juice blends, yogurt blends, and granola-topped dairy drinks will aim to hook hungry morning commuters. Not everything on the regular Jamba menu is wholesomely good for you, but the chain certainly offers healthier alternatives than the fried fare at fast-food joints or doughnut shops like Krispy Kreme (NYSE: KKD). The key is in convincing consumers that paying for a lighter breakfast is worth it.

Unlike the seasoned morning vets at standalone Burger King (NYSE: BKC) and McDonald's (NYSE: MCD) stores, Jamba Juice locations are usually tucked away in the heart of strip malls, where convenient drive-thru options aren't available.

The market for the breakfast dollar is also getting more competitive. Wendy's (NYSE: WEN) is gradually rolling out breakfast menus in select markets, while Starbucks (Nasdaq: SBUX) is installing speedy TurboChef (Nasdaq: OVEN) convection ovens to test out warm breakfast eats.

The timing of the breakfast push couldn't come at a better time for the company, though. Jamba just completed its seasonally strongest quarter with lackluster results. Demand for Jamba's smoothies tend to wane as the summer heat fizzles, so now would be a good time to see if it can do something to smoothen out the seasonality while improving sluggish comps.

I guess that's why they call them smoothies? Bad joke, I know, but with Jamba's share price dipping well into the single digits, the breakfast catalyst -- even if it seems as nutty as granola -- is as good a reason as any to get excited about waking up to the whir of institutional blenders in the morning.

Former odes to Jamba and other earthy drinks:

What do the unfolding financial crisis and ongoing market volatility mean for your money? The Fool's here with answers. Get the best of our daily commentary and analysis in your inbox simply by entering your email address in the box below.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 536461, ~/articles/articlehandler.aspx, 11/22/2008 4:29:06 PM,

Sign up for FREE Motley Fool site access!

Already registered? Login Here

It’s FREE! Enter your email address, and we’ll rush you to the article you're looking for right now.

Privacy / Legal Information

We will use your email address only to keep you informed about updates to our web site and about other products and services that we think might interest you. The Motley Fool respects your privacy. Please read our Privacy Statement

.

Related Tickers

Burger King Holdings, Inc.

BKC Up! $20.59 +2.15 (+11.66%) 4:04 PM
CAPS Rating:
288 Outperforms
98 Underperforms
Rate This Stock

Major Indices

S&P 500800.03+6.32%
DJIA8,046.42+6.54%
NASD1,384.35+5.18%
Updated: 4:07:36 PM
Sponsored by:

The Motley Poll

What changes are you making to your portfolio?

Sponsored by: