Jamba shares fall to new all-time low

The stock shed 15 cents, or 7.4 percent, to $1.89 in afternoon trading. Earlier in the day, the shares fell to a record low of $1.88. The stock has traded between $1.99 and $9.67 in the past 52 weeks.

Analyst Brian Moore said in a note to investors the economic difficulties facing consumers--including high gas and food prices and declining home values--are taking a toll on the demand for affordable luxury snacks.

The lower demand, he said, has begun to hamper the company's same-store sales, or sales at stores open at least a year.

Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly-opened ones.

In its first quarter, which ended in April, same-store sales at company owned locations fell 4.2 percent.

Meanwhile, Moore said, other competitors in the fast food sector, including Jack in the Box, Taco Bell and Starbucks, have recently introduced or are getting ready to launch smoothies.

He added that those offerings are prices between 50 cents and $1.50 less than drinks at Jamba.

Moore said to boost its sales, Jamba must find a way to make consumers see smoothies as healthy drinks and not "an unhealthful sugary treat."