Evercore ISI has initiated coverage of Jersey Mike’s Subs with an outperform rating and a price target of $28, implying an 17% upside from the current share price of $23.86.
The valuation is supported by a 29x multiple on estimated 2028 earnings per share and a 19.5x enterprise value to EBITDA for the same year. The price-to-earnings-to-growth ratio is estimated at 2.0x, assuming a long-term EPS growth rate of 15%, slightly above the franchised restaurant sector average of 1.7x. Gross margins of 65.77% are cited as a key driver of the premium valuation.
The New York-based franchised restaurant company has drawn attention from multiple research firms. Mizuho initiated coverage with a $31 price target and an outperform rating, highlighting potential to exceed sales and EBITDA growth expectations through 2027. Piper Sandler assigned an overweight rating with a $29 target, emphasizing Jersey Mike’s scale and growth among publicly listed peers.
Baird initiated coverage with an outperform rating and a $27 target, pointing to the company’s strong brand and global expansion opportunities. UBS assigned a buy rating with a $28 target, projecting 10% revenue growth over the next three years and a 14% compound annual growth rate in EBITDA. RBC Capital also initiated coverage with an outperform rating and a $28 target, basing its analysis on enterprise value relative to estimated 2027 EBITDA.
