Jersey Mike's Sub Chain Eyes Up to $1.09 Billion IPO, Valuing Company Near $8 Billion

Jersey Mike's Subs, with significant backing from asset manager Blackstone, is preparing for an initial public offering with the aim of raising as much as $1.09 billion and potentially achieving a market valuation close to $8 billion. The company filed with the Securities and Exchange Commission, detailing plans to offer approximately 43.5 million shares at a price range of $21 to $25 per share.

This offering includes a substantial number of shares from Blackstone, which acquired a majority stake in Jersey Mike's last year, and the Abu Dhabi Investment Authority. If the shares are priced at the upper end of the proposed range, the company's market capitalization could reach nearly $8 billion, based on the outstanding shares outlined in the filing.

Jersey Mike's, recently recognized as America's favorite fast-food chain, is moving forward with its public listing despite a generally tepid market for initial public offerings from food and beverage companies. The S&P 1500 Restaurants Index has seen a decline of about 2.2% year-to-date, underperforming the broader S&P 500 index, as the restaurant industry grapples with persistent inflation that affects consumer spending.

Financially, Jersey Mike's reported an 11% increase in revenue for 2025, reaching $724 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period were $339 million, an increase from the $263 million reported the previous year.

The chain is well-known for its made-to-order sandwiches, particularly its signature "Mike's Way" preparation. Following Blackstone's investment last year, Charlie Morrison, former CEO of Wingstop, was appointed to lead Jersey Mike's, with founder Peter Cancro transitioning to the role of chairman. Cancro, who began the business as a deli owner at age 17, has overseen its expansion to over 3,300 locations across the U.S. and Canada. The company has also announced plans to expand into the United Kingdom and Ireland, with several hundred stores anticipated.

Under Cancro's long-term leadership, Jersey Mike's has achieved approximately $3.3 billion in sales and has recorded nearly 20 consecutive years of same-store sales growth. Post-IPO, Blackstone affiliates are expected to retain majority voting control over the election of the company's directors. Morgan Stanley, Jefferies Financial Group, and JPMorgan Chase are serving as the lead underwriters for the offering, which is expected to be listed on the New York Stock Exchange under the ticker symbol JMKE. The exact date for the IPO has not yet been announced.