Jersey Mike's Subs Inc. (JMKE) reported a 10% year-over-year increase in system-wide sales, reaching $1.21 billion, and a 7% rise in adjusted EBITDA to $114 million in the second quarter of 2026. The company's stock price rose 6.15% to $22.10, trading about 11.7% above its 52-week low of $19.86 and 11.6% below its 52-week high of $24.99. The company's market capitalization was $6.61 billion as of the latest trading session, with an EV/EBITDA multiple of 22x.
Total revenue increased 10% to $208 million, while royalties and other revenue rose 11% to $138 million. Company-owned store sales increased 18% to $13 million, reflecting 36 operated stores for the majority of the quarter, including 10 acquired stores in New Jersey and 11 refranchised stores in the West. Digital sales mix reached 43%, up 200 basis points from the prior period.
Same-store sales growth accelerated to 2.3% in Q2, up from 1.7% in Q1 2026, driven primarily by transactions rather than price increases. The company opened 83 new stores in Q2, bringing first-half openings to 130, and ended Q2 with 3,378 locations total, representing an 8.1% net unit growth year-over-year. The company has more than 1,600 units in the domestic pipeline, representing roughly 5 years of domestic development. Internationally, 600 stores are committed, and 30 stores are open in Canada as of the end of the quarter.
Jersey Mike's Subs provided full-year 2026 guidance, including same-store sales growth of 2.5% to 3.0%, net unit growth of at least 8%, and adjusted EBITDA growth of at least 20%. The company also provided third-quarter guidance, including same-store sales growth of 3% to 4% and adjusted EBITDA growth of at least 13%. The company is capable of supporting more than 7,500 locations in the U.S. and 15,000 globally.
Charlie Morrison, Chief Executive Officer, stated that second-quarter same-store sales grew 2.3%, "accelerating from the first quarter, driven by continued momentum and transaction growth." He noted that the brand was awarded ACSI's designation as the number one QSR brand for the country for 2026 and earned the number one spot on Entrepreneur's Franchise 500 earlier in the year. Morrison highlighted the digital shift, stating that the company has increased its digital marketing from less than 1% to over 20% of total spend and is seeing promising early results. Loyalty registrations are up 22% year to date.
Michele, Chief Financial Officer, stated that the second quarter showed "strong progress" toward long-term goals, including $2 million average unit volumes and stronger returns for franchise owners. She confirmed that the company has seen no material impact from the recent Cyclospora outbreak, as it sources only whole head lettuce domestically and cuts it fresh in its stores rather than using bagged or pre-cut lettuce.
