Highlights

  • Third quarter 2026 total revenue was $209 million and net income was $10 million, versus $32 million a year earlier.
  • The Board approved a repurchase authorization of up to $100 million and declared a $0.35 special cash dividend per share.
  • Total stores reached 3,456 at September 27, 2026, including 80 openings in the third quarter and 2 closures.
  • Fiscal 2026 outlook calls for same-store sales growth of at least 2.5% and net unit growth of at least 8%.

Jersey Mike's Subs Inc. (NYSE:JMKE) shares were trading at USD 17.59 on October 28, 2026, up 3.71%, with a relative volume at time of 4.34. The restaurant franchisor approved a repurchase authorization and declared a special dividend on October 26, then reported fiscal third quarter 2026 results and an updated full-year outlook on October 28.

Jersey Mike's Subs Inc. is incorporated in Delaware and lists its principal executive offices in Tinton Falls, New Jersey. The company is a restaurant franchisor that was founded in 1956 as Mike's Subs in Point Pleasant, New Jersey. As of September 27, 2026, there were 3,456 Jersey Mike's stores systemwide, including 3,415 stores in the United States, of which 3,393 were franchised and 22 were company-owned. Its fiscal third quarter covered the thirteen weeks ended September 27, 2026.

Third Quarter Results

For the thirteen weeks ended September 27, 2026, total revenue was $209 million, compared with $190 million in the prior-year period. Royalties and other revenues were $143 million and advertising revenue was $57 million.

Operating income was $48 million, compared with $58 million a year earlier. Net income was $10 million, versus $32 million in the prior year. The company said the decline reflected a $29 million one-time, non-cash, equity-based compensation charge related to the IPO as well as IPO-related professional expenses, partially offset by a gain on the sale of company-owned stores.

Net loss attributable to Jersey Mike's Subs Inc. was $11 million, or $(0.05) per diluted share of Class A common stock, for the period from July 31, 2026 through September 27, 2026, following the Reorganization Transactions and IPO.

Same-store sales growth was 3.0%, compared with 3.9% a year earlier. Systemwide sales were $1.204 billion, compared with $1.083 billion. Average unit volume was $1.386 million, and the digital sales mix was 43%, compared with 42%.

On a non-GAAP basis, Adjusted EBITDA was $125 million, versus $104 million in the prior year. Adjusted Net Income was $74 million and Adjusted EPS was $0.23, both presented for the first time this quarter.

Balance Sheet, Cash Flow and Capital Return

The company generated $177 million of operating cash flow in the first three fiscal quarters of 2026, with capital expenditures of $7 million. In connection with the issuance of 13,782,609 shares of Class A Common Stock, Jersey Mike's received net proceeds of approximately $301 million, which were used to repay outstanding indebtedness.

As of September 27, 2026, total debt was $1.8 billion, and cash, cash equivalents and restricted cash were $325 million.

On October 26, 2026, the Board of Directors approved a stock repurchase authorization of up to an aggregate $100 million of Class A common stock. It also declared a special cash dividend of $0.35 per share, payable on November 19, 2026 to holders of Class A common stock as of the close of business on November 5, 2026. The company described the actions as a return of capital of up to $200 million.

Store Development and Outlook

The company opened 80 stores in the third quarter, compared with 54 a year earlier, and reported net store growth of 8.8%. The system ended the quarter with 3,456 stores, compared with 3,177 at the end of the prior-year period.

Jersey Mike's updated its outlook for full-year fiscal 2026. It expects same-store sales growth of at least 2.5%, net unit growth of at least 8% and Adjusted EBITDA growth of at least 20%. The company said it cannot provide a reconciliation of forward-looking Adjusted EBITDA growth to GAAP net income growth without unreasonable effort.

Management said its long-term goals include driving average unit volumes to $2 million, growing cash-on-cash returns for franchise owners and expanding its footprint domestically and around the world.