Guggenheim Securities initiated coverage of Jersey Mike’s Subs on Monday with a buy recommendation and a $28 price target, citing the sandwich chain’s capital-efficient franchise model and sizable domestic expansion runway.
The firm estimates Jersey Mike’s could operate more than 7,500 U.S. units, compared with its current footprint of 3,300 locations, while also pointing to international growth potential similar to Subway’s more than 15,000 overseas stores. Same-store sales growth is currently in the low single digits, though Guggenheim expects digital marketing, loyalty programs and off-premise sales to lift that metric into the mid-single digits over time.
Jersey Mike’s is valued at 30.94 times adjusted enterprise value to EBITDA, according to InvestingPro data, trading at a 25% to 30% premium to multiples for McDonald’s and Yum Brands. Guggenheim projects long-term unit growth above 8%, low single-digit same-store sales growth and low-double-digit EBITDA compound annual growth to support a valuation closer to the mid-20s EV/EBITDA range.
The stock’s valuation remains elevated relative to earnings, EBITDA and revenue, InvestingPro noted. Guggenheim’s $28 target implies upside from recent levels, though it trails Raymond James’ $29 target and matches BTIG’s $28 call. Other analysts are more cautious: Wells Fargo rates the shares equal weight with a $25 target, TD Cowen has a $26 target, and Wolfe Research’s peer-perform rating includes EBITDA forecasts of $402 million for 2026, $459 million for 2027 and $518 million for 2028.
