JPMorgan has initiated coverage of Jersey Mike’s Subs with an Overweight rating and a $26 price target, citing the sandwich chain’s low capital-consumption model, 66% gross margins and expansion potential.
The bank’s valuation is based on an EV/EBITDA and total addressable market analysis through December 2027. JPMorgan’s price target implies roughly 9% upside from Jersey Mike’s current share price of $23.86, which has risen nearly 6% over the past week.
Jersey Mike’s listed on the New York Stock Exchange at an IPO price of $21 per share on July 29, closing its first day down about 3%. The company was ultimately priced at $23 per share, raising approximately $1 billion and valuing the business at roughly $7.3 billion. Demand for shares exceeded supply by about 15 times, reflecting strong institutional appetite.
Morgan Stanley separately maintains an Overweight rating with a $29 price target, describing Jersey Mike’s as one of the leading U.S. submarine sandwich chains by growth and scale. InvestingPro data indicates a 31x EV/EBITDA multiple, suggesting the stock may be trading at a premium to peers.
Jersey Mike’s operates more than 2,800 locations, with effective annual square footage growth of 7% to 8% compared with 1.8% to 3.5% for global quick-service restaurant peers. The chain is backed by private equity firm Blackstone and has attracted significant interest from long-term investors.
