Jersey Mike's Subs Inc. Raises $1 Billion in Major IPO
Jersey Mike's Subs Inc., a sandwich franchise with over 3,300 locations, raised approximately $1 billion through its initial public offering (IPO) on the New York Stock Exchange under the ticker symbol JMKE. The company offered about 43.5 million shares at an IPO price of $23 per share, closing slightly lower at $21 a share by day's end. The IPO is among the largest in restaurant history and highlights Jersey Mike’s strong financial performance, including systemwide sales of $4.3 billion with an average unit volume of $1.4 million. The company plans to use part of the proceeds—$295 million—to pay down debt. Blackstone Group and Abu Dhabi Investment Authority were key selling shareholders in the offering. The IPO is expected to increase brand visibility, according to CEO Charlie Morrison, who previously led Wingstop through its 2015 IPO.
Topics: franchising IPO restaurant industry