Jersey Mike's Files IPO at $23 per Share with Buy Rating from Melius Research
Sandwich chain Jersey Mike's is set to go public on the New York Stock Exchange, offering shares at $23 each. The company has already received a 'buy' rating and a price target of $30 from Melius Research analyst Jacob Aiken-Phillips, indicating potential for over 30% upside post-IPO. Morgan Stanley, Jefferies, and J.P. Morgan led the offering, which raised $1 billion through the sale of 43.5 million shares. Aiken-Phillips highlighted Jersey Mike's position as a premium sandwich brand in an industry where Subway is closing hundreds of locations annually. He compared the opportunity to Domino’s market share gains over Pizza Hut and Papa John's during its growth phase, suggesting that Jersey Mike's could benefit from Subway's decline. The company generates more than 40% of Subway's U.S. sales with only 15% as many stores. The IPO proceeds will be used for debt repayment and general corporate purposes. Melius Research noted the rarity of high-quality franchisors going public since Wingstop in 2015, emphasizing Jersey Mike’s leadership experience under CEO Charlie Morrison.
