Jersey Mike's Subs (JMKE) investor relations material

Executive summary

• System-wide sales reached $1.21 billion in Q2 2026, up 10% year-over-year, with 83 new stores opened and net unit growth of 8.1%.

• Same-store sales grew 2.3% in Q2 2026, with digital sales mix expanding to 43% of system-wide sales.

• Total revenue increased 10% to $208 million, while net income declined 37% to $37 million due to higher expenses and non-routine costs.

• Adjusted EBITDA rose 7% to $114 million, or 18% year-over-year excluding advertising fund timing.

• Recognized as the #1 QSR brand by ACSI and top franchisor by Entrepreneur's Franchise 500 in 2026.

Financial highlights

• Royalties and other revenue increased 11% to $138 million; advertising revenue rose 6% to $57 million.

• Company-owned store sales increased 18% to $13 million due to acquisitions and refranchising.

• Operating income for the quarter was $66 million, compared to $81 million in the prior year.

• Operating cash flow for the first half of 2026 was $105 million, including $11 million in IPO-related and other discrete outflows.

• Net debt post-IPO was $1.5 billion, with $265 million in unrestricted cash and a leverage ratio of 4.4x.

Outlook and guidance

• Full-year 2026 same-store sales growth expected at 2.5%-3%, with Q3 guidance at 3%-4%.

• Net unit growth projected at least 8% for 2026.

• Adjusted EBITDA expected to grow at least 20% for the year, including at least 13% in Q3.

• Fully exchanged diluted share count anticipated at approximately 318 million.

• Additional costs anticipated as a public company, including increased personnel, legal, and compliance expenses.