Blackstone-Backed Jersey Mike’s Falls 8.7% After $1 Billion IPO

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessBlackstone-Backed Jersey Mike's Falls 8.7% After $1 Billion IPOJersey Mike’s Subs Inc. shares slumped 8.7% in their trading debut Thursday, after the company and some of its shareholders raised $1 billion in a US initial public offering that priced at the midpoint of its marketed range.Author of the article:Janet Freund and Daniela Sirtori You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Jersey Mike’s Subs Inc. shares slumped 8.7% in their trading debut Thursday, after the company and some of its shareholders raised $1 billion in a US initial public offering that priced at the midpoint of its marketed range.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe stock opened at $21 each, below its IPO price of $23 per share. The trading gives the Tinton Falls, New Jersey-based sandwich chain a market value of $6.7 billion, based on the outstanding shares. Jersey Mike’s offered 13.8 million shares in the offering, and backers including Blackstone Inc. and Abu Dhabi Investment Authority offered 29.7 million shares. Shares were marketed at $21 to $25 each. The chain joins a surge in newly-listed companies on US exchanges, even though the market for food and beverage retailer IPOs has been relatively weak, with Black Rock Coffee Bar Inc. and Chinese tea chain Chagee Holdings Ltd. slumping in the months after their respective debuts last year.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againJersey Mike’s IPO was about 15 times oversubscribed, Bloomberg News reported earlier. The offering was also being marketed to retail investors in the UK via Winterflood Securities Ltd., a division of Marex Group Ltd., according to a filing. The S&P 1500 Restaurants Index has declined 0.5% this year through Wednesday’s close, underperforming the S&P 500 Index’s 6.9% advance in the same period, as operators navigate through a difficult environment of value-seeking consumers, persistent inflation and an elevated promotional environment.Still, sandwiches and other handheld meals are having a moment as diners prioritize convenience at an affordable price, shunning some bowl concepts they’ve come to perceive as overpriced. The chain’s US sales growth has outpaced that of large competitors such as Jimmy John’s, while Subway experienced a decline, according to data from restaurant research firm Technomic Inc. With its restaurant booking sales of $4.2 billion in 2025, Jersey Mike’s is one of the country’s biggest chains.While Jersey Mike’s bills itself as a premium sub option, it has launched cheaper products lately to appeal to price-conscious consumers, Chief Executive Officer Charlie Morrison told Bloomberg News in an interview. One of the company’s most successful limited-time offers was its recent grilled sandwich with meats including salami and pepperoni, topped with melted provolone cheese, priced at $8.95.Jersey Mike’s has more than 3,300 locations in the US and Canada. It partnered with its founder and former Chief Executive Officer Peter Cancro to open approximately 300 stores in the UK and Ireland.Jersey Mike’s wants to eventually more than double its US footprint to about 7,500 locations. Morrison believes adding more locations won’t steal sales from existing restaurants, given what he’s seen in North Carolina, which has the highest concentration of Jersey Mike locations in the US.The company grew revenue to $724 million in 2025, up roughly 11% from $653 million the year prior, according to a previous filing. It recorded adjusted earnings before interest, taxes, depreciation and amortization of $339 million last year compared with $263 million in the year before, the filing shows.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.According to Bloomberg Intelligence analyst Michael Halen, Jersey Mike’s is valued at 25.8 times trailing 12-month adjusted Ebitda based on the $23 IPO price. That valuation is greater than that of Chipotle Mexican Grill Inc. and Wingstop Inc., but matches Dutch Bros Inc. and trails Cava Group.Halen wrote in a note that the premium multiple “appears supported by same-store sales outperformance, a seasoned management team, a 99% franchised system and unit economics that drive 42% cash-on-cash returns.” Affiliates of Blackstone will hold 68% of the combined voting power after the IPO, according to a filing. Jersey Mike’s was acquired by Blackstone last year for about $8 billion including debt. Cancro founded Jersey Mike’s Subs in 1975 at age 17, when he purchased the first Mike’s Subs shop in Point Pleasant, New Jersey. He grew the company for nearly 50 years before transitioning to chairman in April, with Charlie Morrison, former chief executive officer of Wingstop and Salad and Go, taking the helm. Morgan Stanley, Jefferies Financial Group Inc. and JPMorgan Chase & Co. led the offering. The shares trade on the New York Stock Exchange under the symbol JMKE. Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.