Jersey Mike's Reports Improved Q2 Sales and Outlines Growth Strategy
Jersey Mike's (NYSE:JMKE) reported a rise in second-quarter same-store sales to 2.3%, up from 1.7% in the first quarter, driven by transaction growth and digital marketing efforts. Systemwide sales increased 10% year-over-year to $1.21 billion, with total revenue rising 10% to $208 million. The company opened 83 new restaurants during the period and has a domestic pipeline of over 1,600 units. Management reaffirmed its full-year outlook for same-store sales growth between 2.5%–3%, at least 8% net unit growth, and adjusted EBITDA growth of at least 20%. Adjusted EBITDA rose 7% to $114 million in the quarter, though it was impacted by timing differences in advertising spending. The company also transitioned away from an area director model, which helped reduce costs. Jersey Mike's is focusing on digital marketing and expansion strategies, with digital orders now accounting for 43% of sales. It plans to open its first location in the U.K. before year-end.
Tickers: $JMKE
Topics: digital growth financial outlook same-store sales unit expansion