Backed by Blackstone, sandwich chain Jersey Mike’s is heading to Wall Street with an ambitious price range. The deal, which could raise up to $1.1 billion, is set to become the second-largest restaurant IPO ever listed in the United States.
🔑 Key takeaways
- Target valuation: up to $8 billion at the top of the range
- Price range: $21 to $25 per share, NYSE listing under JMKE
- Expected proceeds: between $913 million and $1.1 billion gross
- 43.5 million shares on sale, including 29.6 million from existing holders
- Second-largest US-listed restaurant IPO of all time
A landmark IPO for the restaurant sector
Jersey Mike’s has set an indicative range of $21 to $25 per share for its listing on the New York Stock Exchange under the proposed ticker JMKE. At the top end of the range, the valuation reaches nearly $8 billion based on the shares listed in the filing, according to Bloomberg. Demand is said to exceed supply « by a significant margin, » per sources cited by AInvest, highlighting strong investor appetite for the deal.
The company and some of its existing stockholders plan to sell approximately 43.5 million Class A shares. At the proposed range, the offering could raise between $913 million and $1.1 billion in gross proceeds before expenses. According to Forbes, sellers themselves could pocket around $742 million, underscoring an IPO primarily structured to provide liquidity to existing shareholders rather than to raise fresh capital for the company.
Sharply improving financial metrics
Fiscal year 2025 marked a turning point for the chain. Total revenue reached $724 million, up from $653 million in 2024, while net income jumped from just $5 million to $55 million. This trajectory reflects the operating leverage of a now-mature network and the rising contribution of royalties collected from franchisees.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Total revenue | $653M | $724M | +10.9% |
| Net income | $5M | $55M | +1,000% |
| System sales | ~$3.8B | $4.3B | +13% |
| Same-store sales growth | n/a | +3% | — |
System sales, which aggregate company-owned and franchised restaurants, hit $4.3 billion in 2025, up 13% year over year. Same-store sales grew 3% in 2025 and have climbed a cumulative 50% between 2020 and 2025, a remarkable run against an industry backdrop where restaurant traffic has come under pressure as consumers cut back on dining out.
A robust franchise model and a deep expansion pipeline
Jersey Mike’s operates nearly 3,300 restaurants, making it the second-largest hoagie sandwich chain in the United States behind Subway. Roughly 2,000 units have been opened over the past decade and 99% of the network is run by franchisees, with the bulk of revenue coming from royalties and advertising fees.
Unit economics are attractive for franchisees: the average store sales-to-investment ratio stands at 2.6x and cash-on-cash returns reached approximately 42% in fiscal 2025, according to the regulatory filing cited by AInvest. The development pipeline exceeds 1,600 additional stores, with more than 90% of those projects led by existing franchisees, which limits execution risk. Management sees room for around 7,500 domestic locations.
The MyMike’s loyalty program has meanwhile crossed the 12.5 million active members mark in 2025, a meaningful asset for monetizing the customer base and supporting visit frequency.
Blackstone keeps control as Peter Cancro stays involved
More than a year before the IPO, Blackstone acquired a majority stake in a deal that valued the chain at roughly $8 billion. After the listing, the firm retains voting control, allowing Jersey Mike’s to preserve its long-term orientation despite going public. Founder Peter Cancro — who bought the original shop at 17 in 1975 and built the network — keeps a meaningful equity stake and a board seat. His personal net worth is estimated at $4.9 billion by Forbes.
« Blackstone’s experience with leading franchisors aligns with the values and long-term mindset that have shaped Jersey Mike’s, and will help continue our expansion in the United States and abroad. I remained involved in the Company now and in the future. »
Peter Cancro, founder of Jersey Mike’s
Following the Blackstone transaction, Jersey Mike’s appointed Charlie Morrison as its new chief executive. The former Wingstop CEO for more than a decade, he led the chicken-wing chain’s successful market debut — a pedigree that reassures public-market investors.
A friendlier IPO backdrop after SpaceX
With around $1.09 billion in expected gross proceeds, Jersey Mike’s IPO becomes the second-largest US-listed restaurant offering ever, trailing only Arcos Dorados Holdings, the world’s largest McDonald’s franchisee, according to Business Insider. The maturity of the deal also stands out: Chipotle, Wingstop and Shake Shack all went public with a few hundred restaurants, whereas Jersey Mike’s already operates 3,300 locations with more than $4 billion in annual sales.
The filing lands amid a more optimistic climate for IPOs, particularly after the highly publicized SpaceX debut. While the number of deals actually priced remains below last year’s pace, the number of companies that have filed to go public is up, according to Renaissance Capital.
Conclusion
With a near-$8 billion valuation, clearly oversubscribed demand and a sharply accelerating financial trajectory, Jersey Mike’s heads to Wall Street with one of the strongest restaurant-sector profiles since Arcos Dorados. The key question for investors will be whether the chain can convert its existing footprint — already close to 3,300 locations — into durable cash flows without saturating its domestic market. Upcoming same-store sales prints and progress on the 1,600-unit pipeline will be the first catalysts to watch after the listing.
Sources
This article is published for informational and educational purposes only. It does not constitute investment advice. Do your own research (DYOR) before making any decision.
