Jersey Mike's Subs (JMKE) Q2 2026 earnings summary

Executive summary

• Systemwide sales grew 10% year-over-year to $1.21 billion, with total revenue up 10% to $208 million, driven by transaction growth and new store openings.

• Same-store sales increased 2.3% in Q2 2026, accelerating from 1.7% in Q1, with digital sales mix rising to 43% from 41% in the prior year.

• 83 new stores opened in Q2, bringing the total to 3,378 and supporting net unit growth of 8.1%.

• Net income was $37 million, down from $59 million in the prior year, impacted by non-routine expenses, advertising fund timing, and higher interest expense, partially offset by a $14 million gain on the sale of corporate-owned stores.

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

Financial highlights

• Adjusted EBITDA grew 7% to $114 million; would have grown 18% year-over-year excluding advertising spend timing.

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

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

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

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

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.

• Advertising expenses expected to exceed revenues for the year due to media timing, normalizing in future years.