Jersey Mike's stock falls 3% in public market debut after pricing shares at $23
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- Jersey Mike's priced its IPO at $23 per share — the midpoint of its $21-25 range — selling 43.5 million shares for ~$1 billion at a $7.3 billion valuation, one of the largest restaurant IPO fundraises ever
- Shares under ticker "JMKE" fell ~3% Thursday afternoon, opening at $21 below the offering price
- Jersey Mike's operates nearly 3,300 locations, making it the second-largest U.S. hoagie chain behind Subway and now the largest publicly traded competitor in the category
- The chain posted 2024 net income of $55 million on $724 million in revenue, with same-store sales up 3% — gains Morrison attributes to transaction growth from a higher-income customer base that's bucked broader restaurant-industry softness
- Blackstone took a majority stake in late 2024 at a reported ~$8 billion including debt; the chain then tapped Wingstop's former CEO Charlie Morrison to lead the company and its IPO
- Founder Peter Cancro, who bought the original Mike's Subs shop at age 17 in 1975 and retains equity, signed a master franchise deal to bring the chain to the UK and Ireland
- Jersey Mike's long-term target is 15,000 restaurants worldwide, split evenly between U.S. and international markets, with proceeds from the IPO earmarked for debt paydown and corporate purposes
Why it matters: Jersey Mike's is selling investors a global expansion story — 15,000 stores targeted versus today's ~3,300 — rather than near-term traffic wins, with 99.2% franchising driving free cash flow the same way it did under Morrison at Wingstop. Blackstone, which paid a reported ~$8 billion including debt for its majority stake in late 2024, is exiting at the $7.3 billion public-market valuation.
