Jersey Mike’s reported its first quarterly results as a publicly traded company on September 9, 2026. System-wide sales rose 10% in Q2 to approximately $1.21 billion, same-store sales increased 2.3% year-over-year, and management laid out a long-term target of $2 million in average unit volume per location, up from the current system average of approximately $1.4 million.
Founded by Peter Cancro in 1975 in Point Pleasant, New Jersey, Jersey Mike’s completed its IPO in 2026 and entered the public markets s as one of the largest U.S. fast food franchise chains by unit count. The brand’s franchise concept now operates 3,378 locations after opening 83 new stores in Q2 alone and 130 during the first half of the year. Its shares trade on the New York Stock Exchange under the ticker JMKE. The Q2 report is the company’s second public earnings release and its most detailed look yet at system economics under CEO Charlie Morrison, who joined the company prior to its public offering.
Q2 Figures: Revenue Up 10%, Transactions Driving Growth
Total revenue in the second quarter rose 10% to $208 million, with royalties and other franchise revenue reaching $138 million, up 11% year-over-year. Adjusted EBITDA was $114 million, a 7% increase from the same period a year earlier. The acceleration in same-store sales to 2.3%, compared with 1.7% in Q1 2026, was driven specifically by transaction growth rather than by price increases, a distinction the company highlighted as evidence of a broadening customer base across income levels.
Cash-on-cash returns for franchisees remain above 40%, according to the company’s earnings disclosures, a figure management cited as one of the system’s primary recruitment arguments for new franchisee candidates.
The $2 Million AUV Target and the Three Levers Behind It
Current system AUVs sit at approximately $1.4 million per location. Management outlined a long-term strategy to grow that figure to $2 million, a goal tied to three identified levers: digital order growth, expanded daypart coverage, and tighter operational consistency across the system. Digital orders currently represent 43% of sales, and the company has stated it sees potential to push that mix to between 60% and 70% over time.
Virtually all system locations have installed a second make line dedicated specifically to digital orders, a capital investment the company described as central to its throughput strategy. New locations opened in 2026 are tracking at higher AUVs than the equivalent cohort from 2025, suggesting the operational model is improving at the unit level.
Full-Year 2026 Guidance: 8% Net Unit Growth and 20% EBITDA Expansion
For full fiscal year 2026, Jersey Mike’s guided to same-store sales growth of 2.5% to 3%, net unit growth of at least 8%, and adjusted EBITDA growth of at least 20%. The guidance implies a system that adds roughly 270 net new units before the year ends, which would push the total location count to approximately 3,650 by December.
Management attributed the pipeline depth to a franchisee base it described as well-capitalized and operationally consistent. The pace of development also reflects a multi-unit operator strategy: the company has emphasized development agreements with proven operators rather than single-unit deals with first-time franchisees.
A Long Pipeline: 7,500 US Locations and a Global Ambition
Management’s stated long-term view places the US addressable market for Jersey Mike’s at more than 7,500 locations, more than double the current system size, and the global opportunity at 15,000 locations. “Over the long term, we believe Jersey Mike’s has the potential to support more than 7,500 locations in the U.S. and 15,000 globally,” says Charlie Morrison, CEO.
The UK is an active international market, with founder Peter Cancro personally overseeing expansion efforts there. The company’s public company status now gives prospective franchisee candidates and investors access to system-level financial disclosures including franchisee-level performance ranges, a level of transparency that was unavailable during the brand’s decades as a private company.
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