fiscal second quarter 2026
Filed Sep 9, 2026Jersey Mike’s Reports Second Quarter Financial Results Company provides full-year 2026 outlook, including continued same-store sales momentum in the third quarter
Total revenue increased 10% year over year to $208 million, systemwide sales increased 10% to $1.210 billion, same-store sales increased 2.3%, and Adjusted EBITDA increased 7% to $114 million. GAAP net income declined to $37 million from $59 million amid non-routine expenses, advertising fund timing and higher interest expense, partly offset by a $14 million gain on the sale of corporate-owned stores.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Systemwide salesother | $1.210 billion | – | 10% |
| Same-store sales growthother | 2.3% | – | – |
| Digital sales percentageother | 43% | – | – |
| Average unit volume (AUV, in millions)other | $1.376 | – | – |
| Net store growthother | 8.1% | – | – |
| New store openings (gross)other | 83 | – | – |
| Total stores (end of period)other | 3,378 | – | – |
| Total revenuesGAAP | $208 million | – | 10% |
| Royalties and other revenuesGAAP | $138 million | – | 11% |
| Advertising revenueGAAP | $57 million | – | 6% |
| Company-owned stores salesGAAP | $13 million | – | – |
| General and administrative expenseGAAP | $66 million | – | – |
| Advertising expensesGAAP | $54 million | – | – |
| Depreciation and amortizationGAAP | $25 million | – | – |
| Company-owned stores expenseGAAP | $11 million | – | – |
| Total operating expensesGAAP | $156 million | – | – |
| Gain on sale of company-owned storesGAAP | $14 million | – | – |
| Operating incomeGAAP | $66 million | – | – |
| Interest expense, netGAAP | $29 million | – | – |
| Income before income tax expenseGAAP | $37 million | – | – |
| Income tax expenseGAAP | — | – | – |
| Net incomeGAAP | $37 million | – | – |
| Adjusted EBITDAnon-GAAP | $114 million | – | 7% |
| Capital expendituresother | $3 million | – | – |
| Net cash provided by operating activitiesGAAP | $19 million | – | – |
| Cash, cash equivalents, and restricted cash at end of the periodGAAP | $265 million | – | – |
| Total debtGAAP | $2,096 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Royalties and other revenuesDriven by net store growth of 8.1% and same-store sales growth of 2.3%, the latter primarily driven by transactions. | $138 million | – | 11% |
| Advertising revenueDriven by net store growth of 8.1% and same-store sales growth of 2.3%, the latter primarily driven by transactions. | $57 million | – | 6% |
| Company-owned stores salesNo driver was separately provided. | $13 million | – | – |
full-year fiscal 2026, including the third quarter outlook
- NoteSame-store sales growth of 2.5-3.0%, including 3.0-4.0% in the third quarter
- NoteNet unit growth of at least 8%
- NoteAdjusted EBITDA growth of at least 20%, including at least 13% in the third quarter
Capital returns
- Members’ distributions, net: $(41) million for the thirteen weeks ended June 28, 2026
- Members’ distributions, net: $(78) million for the twenty-six weeks ended June 28, 2026
What drove it
- Same-store sales increased 2.3%, primarily driven by transaction growth.
- Systemwide sales and total revenue each increased 10% year over year.
- Digital sales mix increased to 43% from 41% in the prior year.
- The system opened 83 new stores and reported net store growth of 8.1% year over year.
- Adjusted EBITDA included a $10 million net adverse impact related to timing of the advertising fund.
- Absent the advertising-fund timing impact, Adjusted EBITDA increased 18%, helped by $8 million in lower expenses related to the prior Area Director program.
- The gain on sale of company-owned stores was $14 million.
Concerns
- GAAP net income was $37 million versus $59 million in the prior year.
- Operating income was $66 million versus $81 million in the prior year.
- General and administrative expense was $66 million versus $34 million in the prior year.
- Interest expense, net was $29 million versus $22 million in the prior year.
- Same-store sales growth of 2.3% was below the prior-year figure of 3.6%.
- Net store growth was 8.1%, compared with 10.0% in the prior year.
- Net cash provided by operating activities was $19 million for the quarter, versus $32 million in the comparable predecessor period.
What to watch
- Third-quarter same-store sales growth outlook of 3.0-4.0%.
- Third-quarter Adjusted EBITDA growth outlook of at least 13%.
- Full-year same-store sales growth outlook of 2.5-3.0%.
- Full-year net unit growth outlook of at least 8%.
- Full-year Adjusted EBITDA growth outlook of at least 20%.
- The effect of advertising-fund timing and corporate transition costs on reported profitability and cash flow.
Balance sheet and cash flow
- The Company generated $105 million of operating cash flow in the first two fiscal quarters of 2026, including a cash use of $11 million for IPO-related and other discrete outflows associated with transitioning from a founder-led company to a corporate-led organization.
- Net cash provided by operating activities was $19 million for the thirteen weeks ended June 28, 2026, versus $32 million for the period from January 16 to June 29, 2025.
- Capital expenditures in the second quarter were $3 million.
- Cash, cash equivalents, and restricted cash were $265 million as of June 28, 2026, compared with $246 million as of December 28, 2025.
- Total debt was $2,096 million as of June 28, 2026, compared with $2,084 million as of December 28, 2025.
- Net increase (decrease) in cash, cash equivalents, and restricted cash was $(11) million for the thirteen weeks ended June 28, 2026.
- Total assets were $8,163 million as of June 28, 2026, compared with $8,181 million as of December 28, 2025.
- Total liabilities were $2,319 million as of June 28, 2026, compared with $2,278 million as of December 28, 2025.
Analysis
Jersey Mike’s delivered 10% growth in both systemwide sales, to $1.210 billion, and total revenues, to $208 million, during the fiscal second quarter ended June 28, 2026. Same-store sales increased 2.3%, with the company attributing the increase primarily to transaction growth. Digital sales represented 43% of systemwide sales, compared with 41% in the prior year, while AUV was $1.376 million versus $1.354 million.
Unit development remained an important contributor to growth. The system opened 83 stores in the quarter and ended the period with 3,378 stores, versus 3,124 in the prior year. Net store growth was 8.1% year over year, below the prior-year figure of 10.0%. Domestic franchised stores totaled 3,322 at quarter end, international franchised stores totaled 30, and company-owned stores totaled 26.
Reported profitability was pressured despite revenue growth. Operating income was $66 million versus $81 million, and GAAP net income was $37 million versus $59 million. The company cited non-routine expenses, advertising fund timing and higher interest expense as factors in the net-income comparison, partly offset by a $14 million gain on the sale of corporate-owned stores. General and administrative expense was $66 million versus $34 million, while interest expense, net was $29 million versus $22 million.
Adjusted EBITDA increased 7% to $114 million from $107 million. The company said that the result included a $10 million net adverse impact from advertising-fund timing and that Adjusted EBITDA increased 18% absent that impact, helped by $8 million in lower expenses related to the prior Area Director program. Operating cash flow for the first two fiscal quarters was $105 million, including a cash use of $11 million for IPO-related and other discrete outflows. Quarter-end cash, cash equivalents and restricted cash were $265 million, and total debt was $2,096 million.
The outlook calls for full-year same-store sales growth of 2.5-3.0%, net unit growth of at least 8%, and Adjusted EBITDA growth of at least 20%. For the third quarter, the company expects same-store sales growth of 3.0-4.0% and Adjusted EBITDA growth of at least 13%. The primary reported operating markers to follow are whether transaction-led comparable sales acceleration continues, whether unit growth remains at or above the full-year objective, and how advertising-fund timing and corporate-transition costs affect reported results.
Management, verbatim
Our second quarter same-store sales demonstrate strong progress against our long-term objective of achieving $2 million average unit volumes.
Charlie Morrison, Chief Executive Officer
Same-store sales accelerated in the second quarter, driven by transaction growth, which is particularly encouraging given challenged traffic trends across the industry. That acceleration has continued into the third quarter as we seek to broaden our consumer base, grow our digital channels, bring thoughtful innovation to the market, and of course, continue to deliver on our vision of being the world’s most beloved destination for authentic sub sandwiches.
Charlie Morrison, Chief Executive Officer
Not in the filing
stated, not guessed- GAAP diluted EPS
- non-GAAP diluted EPS
- gross profit
- gross margin
- operating margin
- net income margin
- free cash flow
- share repurchases
- dividend declaration or payment
- separately reported debt maturities or interest rate
- full-year revenue guidance
- gross-margin guidance
- operating-expense guidance
- tax-rate guidance
- prior-quarter comparisons for reported operating metrics
- previous-release outlook for comparison to actual results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.