Company provides full-year 2026 outlook, including continued same-store sales momentum in the third quarter
TINTON FALLS, N.J.--(BUSINESS WIRE)--September 09, 2026--
Jersey Mike's Subs Inc. (NYSE: JMKE) today announced financial results for the fiscal second quarter ended June 28, 2026.
Second Quarter 2026 Highlights:
-- Same-store sales increased 2.3%, primarily driven by transaction
growth
-- Opened 83 new stores, driving net unit growth of 8.1% year over year
-- Systemwide sales increased 10% year over year to $1.210 billion
-- Total revenue increased 10% year over year to $208 million
-- Digital sales mix increased to 43% from 41% in the prior year
-- Net income for the quarter was $37 million versus $59 million in the
prior year
-- Adjusted EBITDA for the quarter was $114 million versus $107 million in
the prior year
"Our second quarter same-store sales demonstrate strong progress against our long-term objective of achieving $2 million average unit volumes," said Charlie Morrison, Chief Executive Officer. "Same-store sales accelerated in the second quarter, driven by transaction growth, which is particularly encouraging given challenged traffic trends across the industry. That acceleration has continued into the third quarter as we seek to broaden our consumer base, grow our digital channels, bring thoughtful innovation to the market, and of course, continue to deliver on our vision of being the world's most beloved destination for authentic sub sandwiches."
Mr. Morrison continued, "We are proud to have earned ACSI's designation as the number one QSR brand in the country for 2026, an honor that would not have been possible without the tireless efforts of our franchise owners that deliver amazing service day in and day out."
Key Performance Measures
Thirteen Weeks Ended
------------------------------------
June 28, 2026 June 29, 2025
Systemwide sales (in billions) $ 1.210 $ 1.101
Same-store sales growth 2.3% 3.6%
Digital sales percentage 43% 41%
Average unit volume (AUV, in
millions) $ 1.376 $ 1.354
Net store growth 8.1% 10.0%
New store openings (gross) 83 73
Total stores (end of period) 3,378 3,124
Financial Results
Total revenue increased 10% year over year to $208 million, consistent with systemwide sales growth of 10%. Royalties and other revenue increased 11% to $138 million, while advertising revenue increased 6% to $57 million, both driven by net store growth of 8.1% and same-store sales growth of 2.3%, the latter primarily driven by transactions.
Net income for the quarter was $37 million versus $59 million in the prior year, inclusive of non-routine expenses, advertising fund timing and higher interest expense, partially offset by a $14 million gain on the sale of corporate-owned stores.
Adjusted EBITDA increased 7% to $114 million, including a $10 million net adverse impact related to timing of the advertising fund; absent which, Adjusted EBITDA increased 18%, helped by $8 million in lower expenses related to the prior Area Director program.
The Company generated $105 million of operating cash flow in the first two fiscal quarters of 2026, including a cash use of $11 million for IPO-related and other discrete outflows associated with transitioning from a founder-led company to a corporate-led organization. Capital expenditures in the second quarter were $3 million.
Development
As of June 28, 2026, there were 3,378 Jersey Mike's stores systemwide, including 3,348 stores in the United States, of which 3,322 were franchised and 26 were company owned.
Domestic International Company- Total
Franchised Franchised owned System
----------- ------------- ---------- ---------
Store count as of
December 28,
2025 3,209 21 26 3,256
Openings 47 -- -- 47
Closures (3) -- -- (3)
Net transfers(a) (10) -- 10 --
---------- ------------- ------ ------
Store count as of
March 29, 2026 3,243 21 36 3,300
Openings 73 9 1 83
Closures (5) -- -- (5)
Net transfers(a) 11 -- (11) --
---------- ------------- ------ ------
Store count as of
June 28, 2026 3,322 30 26 3,378
========== ============= ====== ======
(a) Represents store transfers between franchise owners and the Company
Outlook
Jersey Mike's provided the following outlook for full-year fiscal 2026:
-- Same-store sales growth of 2.5-3.0%, including 3.0-4.0% in the third
quarter
-- Net unit growth of at least 8%
-- Adjusted EBITDA growth of at least 20%, including at least 13% in the
third quarter
Conference Call and Webcast
The Company will host a conference call today, September 9th, to discuss the fiscal second quarter 2026 financial results and business updates at 8:30 AM Eastern Time. The conference call can be joined telephonically by dialing 1-877-425-9470 or 1-201-389-0878 (international) and asking for the Jersey Mike's conference call. A replay will be available two hours after the call and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 (international), then entering the replay code 13762283. The replay will be available through Wednesday, September 23, 2026.
The conference call will also be webcast live and later archived on the investor relations section of Jersey Mike's corporate website at investors.jerseymikes.com under the "News & Events" section.
About Jersey Mike's
Jersey Mike's is a leading fast-casual restaurant franchisor with more than 3,300 locations across the United States and Canada. Founded in 1956 as Mike's Subs in Point Pleasant, New Jersey, the company has grown from a single neighborhood sub shop into one of the fastest-growing restaurant brands in America. Jersey Mike's differentiates itself through its "A Sub Above" positioning, emphasizing fresh-sliced meats and cheeses, authentic recipes, and a distinctive customer experience that has earned recognition as the top-rated QSR brand in 2026 and the #1 Best Sandwich Chain in America in 2025.
Non-GAAP Financial Measures
Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management believes that certain non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods to help investors, securities analysts and other parties better understand underlying trends in our business. Management uses these measures to evaluate our performance. Full definitions of non-GAAP measures and reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of this press release.
A reconciliation of forward-looking Adjusted EBITDA growth rate to GAAP net income growth rate cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements relate to matters such as our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. All statements other than those that are purely historical may be forward-looking statements. We may, in some cases, use words such as "anticipate," "assume," "believe," "contemplate," "continue," "could," "estimate," "expect," "foreseeable," "intend," "may, " "plan," "potentially," "predict," "project," "seek," "should," "target, " "will," or "would," or similar words or phrases that convey uncertainty of future events or outcomes, to identify forward-looking statements in this press release.