Jersey Mike's Subs priced its initial public offering at $23 per share and began trading on the New York Stock Exchange on Thursday under the ticker symbol "JMKE," raising approximately $1 billion and valuing the company at $7.3 billion.
Jersey Mike's stock opened at $21 per share, beneath its $23 IPO price, and was trading down roughly 2% by Thursday afternoon. The $23 price came in at the midpoint of the company's marketed range of $21 to $25 per share. The offering comprised 43,478,261 shares of Class A common stock, with existing stockholders granted underwriters a 30-day option to purchase up to an additional 6,521,739 shares to cover over-allotments, the company said.
For 2025, Jersey Mike's posted total revenue of $724 million and net income of $55 million. Comparable-store sales rose 3% during that time. With more than 3,300 locations in the United States and Canada, Jersey Mike's is the second-largest hoagie chain by sales behind Subway and is now the largest publicly traded chain in that category, according to CNBC.
Jersey Mike's plans to use proceeds from its portion of the offering — roughly 13.8 million of the shares sold — to repay debt and for general corporate purposes, the company said. The remaining shares were sold by existing stockholders, including Blackstone and the Abu Dhabi Investment Authority, according to Bloomberg. The offering was more than 10 times oversubscribed.
CEO Charlie Morrison said that Jersey Mike's tends to attract a higher-income clientele, which has helped shield the chain from the broader consumer spending slowdown. "We're seeing the consumer come back," Morrison said. "Most of our same-store sales growth this year to date has been driven primarily by transaction growth."
Blackstone acquired a majority stake in Jersey Mike's for roughly $8 billion including debt and is set to control approximately two-thirds of the company's votes once the IPO closes. Morrison, a former Wingstop chief executive, assumed the CEO role in April after founder Peter Cancro stepped back to become chairman following nearly five decades running the business.
Looking further out, Jersey Mike's has identified room to grow to 15,000 locations globally, with roughly equal footing between domestic and international markets, according to CNBC. Jersey Mike's and founder Peter Cancro have signed a master franchise agreement to bring the chain to the United Kingdom and Ireland.
Morgan Stanley $MS, Jefferies, and J.P. Morgan acted as global coordinators and joint bookrunning managers for the offering, the company said.