Shares of Jersey Mike’s Subs Inc rose in premarket trading on Monday after multiple brokerages initiated coverage with bullish outlooks, citing the company’s growth pipeline and operational momentum.
The operator of more than 3,300 locations in all 50 states closed at $23.86 on Friday, up 5.3% from its July 30 IPO price of $23. The stock was indicated higher at $23.89 in premarket activity.
Jefferies initiated coverage with a Buy rating and a $29 price target, representing 22% upside based on 24 times its 2027 EBITDA estimate. The firm projects 8.3% unit growth in 2026 and 8.7% in 2027, alongside same-store sales growth of 2.4% and 1.9% respectively. Adjusted EBITDA is forecast at $411 million in 2026 and $458 million in 2027.
Stifel also assigned a Buy rating with a $27 target, citing 9% revenue growth in 2026 driven by 2.4% same-store sales growth and 8.3% new unit expansion. The firm expects EBITDA to reach $397.4 million in 2026 and $461.3 million in 2027. Risks noted include food-safety incidents, competitive pressures, and potential cannibalization from store expansion.
Mizuho Securities initiated with an Outperform rating and a $31 target, the highest among the four firms. The firm argues Jersey Mike’s 19.5 times EV/2027E EBITDA multiple understates its long-term growth potential, projecting EBITDA growth above 15% annually. Mid-third-quarter checks indicated slight same-store sales upside versus guidance despite recent food-safety concerns in the broader category.
Morgan Stanley initiated with an Overweight rating and a $29 target, set at roughly 32 times its 2028 adjusted EPS estimate of 90 cents. The firm’s bull case targets $38, assuming mid-single-digit same-store sales growth and unit expansion exceeding 10%, while the bear case assumes low-single-digit comps and slower unit growth of 6.5%. Modeled metrics include 2.5% to 3% near-term same-store sales growth and 8.5% unit growth in 2026, accelerating to 300 new locations annually by 2030.
Jersey Mike’s raised $301 million in its IPO, primarily to reduce debt. Systemwide sales reached $4.217 billion in 2025, up from $3.735 billion in 2024, with a long-term target of 7,500 U.S. stores and 15,000 globally.
