Bank of America sees more upside in restaurant stock
Bank of America analyst Sara Senatore raised her price target for Jersey Mike's Subs (JMKE) to $29, citing improving traffic trends and digital sales growth. The company reported Q2 same-store sales growth of 2.3% and systemwide sales of $1.21 billion. Despite near-term expense pressures, BofA maintains a Buy rating, expecting long-term growth. JMKE opened 83 new restaurants in Q2, with a target of over 7,500 domestic stores by 2036.
How this was made
The 30-second read
Why it matters
The BofA upgrade highlights traffic and digital trends as catalysts, suggesting the stock may outperform peers.
Market read
Analyst upgrade with a new $29 target could attract buying interest and lift the stock ahead of its next earnings release.
What to watch
Potential headwinds from rising labor costs and franchisee cash flow constraints.
Background
Jersey Mike's reported Q2 same‑store sales growth of 2.3% and a 10% increase in systemwide sales, while adjusted EBITDA rose 7% despite higher advertising expenses.
Ticker impact
Bank of America raised its price objective for Jersey Mike's to $29 and reiterated a Buy rating after the company's Q2 results showed traffic and sales improvements.
Potential upside of ~30% from current price if target is accepted.
BofA's new target reflects confidence in traffic growth and unit economics, likely prompting traders to add positions.
Market effects
Positive outlook may lift other fast‑casual restaurant stocks.
U.S. restaurant sector could see modest gains.
Limited to U.S. equity markets.
Counterpoint
Higher advertising spend could compress margins and limit upside.
Key entities
- CompanyJersey Mike's Subs
Publicly traded sandwich chain (ticker JMKE).
- AnalystBank of America
Raised price objective and reiterated Buy rating.
