TD Cowen initiated coverage of Jersey Mike’s Subs on Monday with a buy rating and a $26 price target, citing expectations for durable adjusted EBITDA growth driven by consistent sales and expansion.
The firm’s bullish stance follows a nearly 6% rise in Jersey Mike’s shares over the past week, pushing the stock to $23.86. At that level, the company commands a market capitalization of $7.6 billion and trades at a premium valuation multiple of 31 times EV/EBITDA, supported by a gross profit margin of 66%.
TD Cowen’s outlook is anchored on low-single-digit same-store sales growth, high-single-digit net restaurant growth, and sustained adjusted EBITDA margin expansion. The firm also projects that digital and personalization initiatives could elevate same-store sales to mid-single-digit levels by the fourth quarter of 2026.
The initiation comes amid a broader wave of analyst coverage for the sandwich chain. Evercore ISI maintained an Outperform rating with a $28 target, implying a 17% upside from current levels. Mizuho initiated coverage with an Outperform rating and a $31 target, Piper Sandler assigned an overweight rating with a $29 target, and Baird maintained an Outperform rating with a $27 target. Wolfe Research initiated coverage with a Peerperform rating but did not specify a price target.
Jersey Mike’s operates a nationwide chain of submarine sandwich restaurants in the United States, with a business model centered on franchising and operational efficiency.
