Jersey Mike’s shares dropped about 6% on their first day of trading on the New York Stock Exchange, opening at $21 per share, below the $23 IPO price. The sandwich chain raised roughly $1 billion by selling 43.5 million shares, giving it a valuation of $7.3 billion and making it one of the largest initial public offerings ever in the restaurant sector. With nearly 3,300 locations, Jersey Mike’s is the second-largest hoagie chain in the U.S. and now holds the top spot as the largest publicly traded brand in its category.

The company reported $724 million in total revenue and a net income of $55 million last year, with same-store sales up 3%. This performance is notable in an industry facing weaker customer traffic and cautious consumer spending. Jersey Mike’s has attracted investors due to its high average unit volumes and asset-light franchise model. CEO Charlie Morrison highlighted that the brand’s customer base tends to be higher income, helping the chain defy broader restaurant industry trends by boosting transaction growth this year.

Jersey Mike’s founder Peter Cancro started working at the original sandwich shop as a teenager in the 1970s and eventually took full ownership, expanding the business through franchising. Today, franchisees run 99.2% of the locations. In 2024, private equity firm Blackstone acquired a majority stake in the company for roughly $8 billion, and Morrison was brought on as CEO. The company plans to use the IPO proceeds to reduce debt and support general corporate needs while pursuing international growth opportunities, including a new franchise agreement to enter the UK and Ireland markets.

Long-term ambitions include scaling to 15,000 restaurants globally, split evenly between the U.S. and international locations. Morrison noted that going public on the NYSE increases brand visibility both domestically and abroad. Jersey Mike’s IPO success provides a positive outlook for other consumer companies considering public offerings, including rival Inspire Brands, which has confidentially filed for its own IPO and could challenge Jersey Mike’s fundraising record.