Earnings analysis · 10-Q
JMKE earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
Jersey Mike’s reported approximately $208 million of Q2 revenue, up 10% year over year, with same-store sales up 2.3% and Adjusted EBITDA up 7% to $114 million. However, net income fell to $37 million from $59 million,…
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Jersey Mike’s reported approximately $208 million of Q2 revenue, up 10% year over year, with same-store sales up 2.3% and Adjusted EBITDA up 7% to $114 million. However, net income fell to $37 million from $59 million, making the earnings trend mixed. The IPO generated approximately $301 million of net proceeds that were used to repay $301 million of debt, while the filing identifies commodity costs, floating-rate interest exposure and prospective international expansion as risks. The filing does not provide sufficient detail to calculate gross margin, operating margin, free cash flow, balance-sheet trends or segment results.
What stood out
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Sales growth remained positive
Q2 revenue was reported at approximately $208 million, up 10% year over year, while same-store sales increased 2.3%.
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Adjusted EBITDA reached $114 million
Adjusted EBITDA increased 7% to $114 million, indicating EBITDA growth exceeded the reported 10% revenue growth rate on the disclosed figures.
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IPO proceeds reduced debt
The IPO generated approximately $301 million of net proceeds for the company, which were used to repay $301 million of Series 2026-1 debt on August 17, 2026.
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Public offering completed
The company completed an IPO involving 46,050,821 shares, including the underwriters’ option shares, at $21.85 per share net of underwriting discounts.
What to watch
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Net income declined materially
Net income declined to $37 million from $59 million in the prior-year period, despite reported revenue of approximately $208 million and Adjusted EBITDA of $114 million.
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Food-cost inflation exposure
Commodity and food cost inflation remains a risk for franchise owners; management states that a sustained increase in food or commodity costs could adversely affect results, even though direct exposure is limited by the small number of company-owned stores.
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Floating-rate debt sensitivity
The VFN was undrawn as of June 28, 2026, but a 100-basis-point increase in its floating interest rate would have increased annual interest expense by $1 million if fully drawn.
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International expansion adds FX risk
Less than 1% of total revenue was from non-U.S.-dollar sources as of June 28, 2026, but management anticipates that mix will change as international expansion proceeds.
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No material risk-factor changes
The company states that there were no material changes to the risk factors disclosed in its IPO Prospectus; therefore, no material risk-factor update versus the prior disclosure was identified.
Management's outlook
The filing does not provide numeric revenue or EPS guidance. Previously disclosed full-year 2026 operating outlook calls for same-store sales growth of 2.5%-3.0%, Q3 same-store sales growth of 3.0%-4.0%, net unit growth of at least 8%, and Adjusted EBITDA growth of at least 20% for the year and at least 13% in Q3; no comparable prior outlook was disclosed.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.