Actor Danny DeVito, from left, Charlie Morrison, chief government officer of Jersey Mike’s Subs Inc., Eli Manning, former Nationwide Soccer League (NFL) quarterback and founding associate of Model Velocity Companions, and Peter Cancro, founder and chairman of Jersey Mike’s Subs Inc., in the course of the firm’s preliminary public providing (IPO) on the New York Inventory Change (NYSE) in New York, US, on Thursday, July 30, 2026.
Michael Nagle | Bloomberg | Getty Pictures
Shares of Jersey Mike’s fell about 3% throughout buying and selling on Thursday afternoon after the corporate made its public market debut on the New York Inventory Change below the ticker “JMKE.”
The inventory opened at $21 per share, under its preliminary public providing pricing of $23 per share, on the midpoint of the anticipated vary of $21 to $25 per share.
Jersey Mike’s offered 43.5 million shares, elevating about $1 billion and valuing the corporate at $7.3 billion. With these proceeds, the chain is now among the many largest-ever preliminary fundraises for a restaurant IPO.
Jersey Mike’s has practically 3,300 places, making it the second-largest hoagie sandwich chain within the U.S. behind Subway. It is now the biggest public chain within the class.
The corporate reported web revenue of $55 million on complete income of $724 million final yr. Its same-store gross sales elevated 3% over the identical interval. The metric tracks gross sales development at eating places open no less than a yr.
Broadly, diners are consuming out much less usually or looking for offers to save cash, and the restaurant business has seen visitors and gross sales soften. However Jersey Mike’s has largely bucked the pattern, and its excessive common unit volumes and asset-light franchise mannequin made the inventory engaging to traders.
CEO Charlie Morrison advised CNBC that Jersey Mike’s buyer base usually skews “a bit of increased revenue,” insulating the chain from a number of the pullback in shopper spending.
“We’re seeing the patron come again,” Morrison mentioned. “We have seen optimistic transition development. Actually, most of our same-store gross sales development this yr to this point has been pushed primarily by transaction development.”
Jersey Mike’s profitable IPO is a optimistic harbinger for different shopper corporations trying to go public. Rival restaurant firm Encourage Manufacturers, which counts Dunkin’ and Jimmy John’s amongst its manufacturers, has confidentially filed for an preliminary public providing and will simply snatch Jersey Mike’s title for biggest-ever restaurant IPO.
Clothes firm Reformation can also be anticipated to make its public market debut on Thursday; the retailer priced shares at $15, on the low finish of its anticipated vary of $15 to $17.
Jersey Mike’s growth plans
Jersey Mike’s founder Peter Cancro started working at a Jersey Shore sandwich store at age 14 in 1971. 4 years later, he pulled collectively sufficient cash to purchase Mike’s Subs. Cancro later modified the identify and started franchising the chain. Immediately, franchisees function 99.2% of Jersey Mike’s places.
In late 2024, Jersey Mike’s introduced that Blackstone had purchased a majority stake reportedly valued at round $8 billion together with debt.
After the transaction closed, Jersey Mike’s tapped Morrison as its chief government. He beforehand led Wingstop for greater than a decade, together with in the course of the rooster wing chain’s personal IPO.
Morrison mentioned that he sees a variety of similarities with Wingstop. Just like the rooster wing chain, Jersey Mike’s is generally franchised and generates free money circulate for traders.
Jersey Mike’s plans to make use of the proceeds from the providing to pay down debt and normal company functions.
Trying forward, the chain plans to broaden its worldwide attain.
The overwhelming majority of its eating places are within the U.S., a comparatively mature marketplace for hoagies. Cancro, who has retained some fairness in Jersey Mike’s, signed a grasp franchise settlement to convey Jersey Mike’s to the UK and Eire.
Long run, Jersey Mike’s sees the potential for 15,000 eating places worldwide — half within the U.S., half in worldwide markets.
“One of many advantages of being a publicly traded firm on the New York Inventory Change is that we get a variety of consciousness of the model, not solely within the U.S., but in addition all over the world,” Morrison mentioned.
