Jamba Juice 2007 Annual Report Download - page 19

Table of Contents
Our expansion into new markets may present increased risks due to our unfamiliarity with those areas.
Some of our new stores are planned for markets where we have little or no operating experience. Those markets may have different competitive
conditions, consumer tastes and discretionary spending patterns than our existing markets. As a result, those new stores may be less successful than stores in
our existing markets. Consumers in a new market may not be familiar with the Jamba Juice brand, and we may need to build brand awareness in that market
through greater investments in advertising and promotional activity than we originally planned. We may find it more difficult in new markets to hire, motivate
and keep qualified employees who can project our vision, passion and culture. Stores opened in new markets may also have lower average store revenue than
stores opened in existing markets, and may have higher construction, occupancy or operating costs than stores in existing markets. What’s more, we may
have difficulty in finding reliable suppliers or distributors or ones that can provide us, either initially or over time, with adequate supplies of ingredients
meeting our quality standards. Revenue at stores opened in new markets may take longer to ramp up and reach expected revenue and profit levels, and may
never do so, thereby affecting overall profitability.
Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to
various factors.
Our quarterly operating results may fluctuate significantly because of various factors, including:
• the impact of inclement weather, natural disasters and other calamities, such as hurricanes Katrina and Rita in 2005, or earthquakes, particularly
those that may occur near our Company’s support center in Northern California;
• unseasonably cold or wet weather conditions;
• the timing of new store openings and related revenue and expenses;
• operating costs at our newly opened stores, which are often materially greater during the first several months of operation;
• labor availability and wages of store management and team members;
• profitability of our stores, especially in new markets;
• changes in comparable store revenue and customer visits, including as a result of the introduction of new menu items;
• variations in general economic conditions, including those relating to changes in gasoline prices;
• negative publicity about the ingredients we use or the occurrence of food-borne illnesses or other problems at our stores;
• changes in consumer preferences and discretionary spending;
• increases in infrastructure costs;
• fluctuations in supply prices; and
• fluctuations in the fair value of the derivative liability associated with outstanding warrants.
Because of these factors, results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any year. Average
store revenue or comparable store revenue in any particular future period may decrease. In the future, operating results may fall below the expectations of
securities analysts and investors.
Our business and results may be subject to disruption from work stoppages, terrorism or natural disasters.
Our operations may be subject to disruption for a variety of reasons, including work stoppages, acts of war, terrorism, pandemics, fire, earthquake,
flooding or other natural disasters. In particular, our corporate offices and
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