Jefferies initiated coverage of Jersey Mike’s Subs on Friday with a buy recommendation and a price target of $29, implying roughly 22% upside from the current trading price of $23.86.
The New York-listed franchise operator, which operates a submarine sandwich chain across the U.S., has drawn attention from multiple analysts since its market debut last month. Jefferies’ initiation follows similar coverage from JPMorgan and Morgan Stanley, both assigning overweight ratings with respective targets of $26 and $29.
Jersey Mike’s priced its initial public offering at $23 per share in late July, raising approximately $1 billion by selling about 43.5 million shares. The company was valued at roughly $7.3 billion at the time, though shares fell 3% on their first trading day, opening at $21.
Since then, the stock has gained 5.8% over the past week, closing at $23.86 on August 21, according to InvestingPro data. The company reported franchise revenue of $742 million and gross margins of 66% in recent filings.
Management has outlined plans to expand the domestic footprint to more than 7,500 units, up from the current base. Same-store sales growth is projected in the low-single digits, supported by menu price increases of 1% to 2% and steady customer traffic. The company is also prioritizing digital transformation, including enhancements to its loyalty program and a shift in advertising toward social media channels.
Jersey Mike’s operates over 50 years of history as a franchise-based restaurant chain.
