How Jamba Juiced Investors' 2012 Returns

The year 2012 is nearing its end, and now's a good opportunity to look at what happened throughout the year to the stocks you follow. If you know the important things that a company achieved, as well as any challenges it failed to overcome, then you can make a better decision about whether it really deserves a spot in your portfolio.

Today, I'll look at Jamba (Nasdaq: JMBA  ) . The smoothie specialist came into 2012 having suffered a terrible year, but some positive trends among beverage-selling retailers has brought Jamba back into the spotlight. Below, you'll find more on what moved shares of Jamba this year.

Stats on Jamba

   

Year-to-date stock return

71%

Market cap

$173 million

Revenue, past 12 months

$229 million

Net loss, past 12 months

($2.6 million)

1-year revenue growth

2.1%

CAPS rating

***

Source: S&P Capital IQ.

What made Jamba soar in 2012?
Jamba had shares rebound sharply from its 2011 losses for a variety of reasons, but all of them boil down to better investor confidence. With a new management team that's pushing growth through refranchising and expanding menus to market the company as a wellness brand, Jamba has attracted positive attention from professional investor gatherings like the Value Investing Congress.

In addition, buyout interest in premium drink sellers has increased sharply in recent months. In November, Starbucks (Nasdaq: SBUX  ) agreed to acquire tea purveyor Teavana (NYSE: TEA  ) for $620 million, following up on its buy of juice specialist Evolution Fresh last year. Moreover, a private equity deal for Caribou Coffee (Nasdaq: CBOU  ) vaulted shares of the coffee seller just last week. Buying Jamba could help answer growth woes for a number of Starbucks competitors, especially in the fast-food space.

With McDonald's (NYSE: MCD  ) and Starbucks having moved aggressively into the smoothie market, Jamba has big competition and remains only seasonally profitable. But if its diversifying efforts are successful, there's no reason not to expect more consistent profits.

2012 has whetted investors' appetites for Jamba, but it's up to the company to justify their hopes in 2013. With a valuable brand at an attractive price, it'll be interesting to see if Jamba remains independent throughout the coming year.

Will McDonald's buy Jamba?
Jamba investors are hoping for a buyout from McDonald's or its peers. After making investors rich in 2011, McDonald's has been one of the worst-performing blue-chip stocks this year, so it could benefit from a buyout. Our top analyst on McDonald's will tell you whether you should be worried by this trend, and he'll shed light on whether McDonald's is a buy at today's prices. Click here now to read our premium research report on the company.

Click here to add Jamba to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.


Read/Post Comments (0) | Recommend This Article (0)

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2167093, ~/Articles/ArticleHandler.aspx, 10/22/2014 11:41:49 AM

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...


Advertisement