RBC Capital Markets has initiated coverage of Jersey Mike’s Subs with an outperform rating and a price target of $28.00 per share.
The valuation is based on a multiple of 24 times enterprise value to estimated EBITDA for fiscal 2027. RBC’s outlook reflects the company’s asset-light franchise model, with franchisees generating returns on invested capital above 40%. Same-store sales growth is cited as more sustainable than peers, supported by menu innovation, digital advertising, and targeted marketing investments.
Jersey Mike’s, which trades under the ticker JMKE, is positioned for expansion with the potential to more than double its U.S. store count. International growth remains in early stages, according to the analysis. The company’s gross profit margin stands at 65.77%, while its EV/EBITDA multiple is reported at 30.94.
The franchise operator has scheduled an initial public offering for July 30, 2030, at a proposed price of $23.00 per share, aiming to raise approximately $301 million primarily to reduce debt. Shares were trading at $23.86, up nearly 6% over the prior week.
RBC’s rating follows similar bullish coverage from peers. Stifel assigned a buy rating with a $27 target, Jefferies issued a buy with a $27 target citing potential for over 7,500 units, and Morgan Stanley set an overweight rating with a $29 target. Bernstein SocGen assigned a market perform rating with a $26 target, while JPMorgan maintained an overweight rating with a $26 target based on EV/EBITDA and long-term growth potential through 2027.
