Jersey Mike's Subs Inc

Jersey Mike's first post-IPO 10-Q shows 3.0% SSS growth and 20% Adjusted EBITDA growth, while GAAP net income fell 69% on $34M IPO-related equity comp catch-up.

Jersey Mike's Q3 2026 results demonstrate the operational strength of its franchise model — systemwide sales reached $1.204 billion (+11% YoY), Adjusted EBITDA grew 20% to $125 million, and same-store sales expanded 3.0% driven by transaction volume, not ticket inflation. The 69% GAAP net income decline to $10 million is entirely a function of $34 million in IPO-triggered performance equity catch-up and $17 million in IPO-related professional fees, both non-recurring in nature. The business completed its transition away from the Area Director subcontractor model — all buyouts are done — which will structurally reduce G&A and improve royalty economics on a go-forward basis.

Jersey Mike's is a high-growth franchisor of fast casual, submarine-style sandwich restaurants. Nearly all of its 3,456 stores are franchised; the company generates revenue primarily through royalties and advertising fees as a percentage of systemwide sales.

Primary products

• Franchise royalties
• Advertising revenue
• System support services
• Company-owned store sales
• Supplier program payments
• Technology fees