Jersey Mike's Subs Inc. said same‑store sales grew 2.3% in the fiscal second quarter ended June 28, driven mainly by higher transaction counts. Systemwide sales rose 10% year over year to $1.210 billion, while total revenue increased 10% to $208 million.
Digital orders accounted for 43% of systemwide sales, up from 41% a year earlier, and average unit volume reached $1.376 million, compared with $1.354 million in the prior‑year period.
Net income fell to $37 million from $59 million a year ago, reflecting non‑recurring expenses, timing of an advertising fund and higher interest costs, partially offset by a $14 million gain on the sale of corporate‑owned stores. Adjusted EBITDA rose 7% to $114 million; excluding the advertising fund timing effect, the increase was 18% after an $8 million reduction in Area Director program expenses.
Operating cash flow for the first half of fiscal 2026 totaled $105 million, which includes an $11 million cash outflow for IPO‑related and other discrete items. Capital expenditures in the quarter were $3 million.
The company opened 83 new locations in the quarter, bringing the systemwide count to 3,378 stores—a net unit growth of 8.1% year over year. The network now comprises 3,322 domestic franchised stores, 30 international franchised stores and 26 company‑owned outlets.
Jersey Mike's reaffirmed its full‑year fiscal 2026 outlook, projecting same‑store sales growth of 2.5%‑3.0%, net unit growth of at least 8% and adjusted EBITDA growth of at least 20%. For the third quarter, the company expects same‑store sales growth of 3.0%‑4.0% and adjusted EBITDA growth of at least 13%.
