Jersey Mike's stock falls 5.7% on first day of trading following a $1 billion initial public offering.
Jersey Mike's shares fell approximately 6% during their public market debut on the New York Stock Exchange under the ticker symbol "JMKE." The sandwich chain priced its initial public offering at $23 per share, raising roughly $1 billion and establishing a company valuation of $7.3 billion. This debut marks one of the largest initial fundraises in the restaurant industry's history. Charlie Morrison, the company's CEO, noted that the brand's high average unit volumes and asset-light franchise model have made the stock attractive to investors. Despite a general softening in restaurant traffic, Jersey Mike's has maintained positive growth, reporting a net income of $55 million on $724 million in revenue last year. The company plans to use the proceeds from the offering to pay down debt and fund general corporate purposes. Founder Peter Cancro continues to hold equity in the chain, which now operates roughly 3,300 locations. The company aims to expand its domestic footprint to 7,500 stores and eventually reach a goal of 15,000 restaurants globally.