Jersey Mike's posts 10% revenue gain but net income falls in Q2

Jersey Mike's Subs Inc. (NYSE: JMKE) reported fiscal second-quarter revenue of $208 million, a 10% increase from the prior year, as systemwide sales rose 10% to $1.21 billion for the quarter ended June 28, 2026, according to a company press release.

Net income fell to $37 million from $59 million in the year-ago period, a decline the company attributed to non-routine expenses, advertising fund timing, and higher interest expense, partially offset by a $14 million gain on the sale of company-owned stores. Adjusted EBITDA rose 7% to $114 million.

Same-store sales increased 2.3%, driven primarily by transaction growth, compared with 3.6% growth in the prior-year quarter. The digital sales mix rose to 43% from 41% a year earlier. Average unit volume increased to $1.376 million from $1.354 million.

The company opened 83 new stores during the quarter, bringing its total store count to 3,378 systemwide as of June 28, 2026, up from 3,124 a year earlier. Net unit growth was 8.1% year over year. Of the total stores, 3,322 were domestic franchises and 26 were company-owned.

General and administrative expenses rose to $66 million in the quarter from $34 million a year earlier. Interest expense, net, increased to $29 million from $22 million. The company generated $105 million in operating cash flow during the first two fiscal quarters of 2026, including $11 million in IPO-related and other discrete outflows. Capital expenditures in the second quarter were $3 million.

For full-year fiscal 2026, Jersey Mike's said it expects same-store sales growth of 2.5% to 3.0%, net unit growth of at least 8%, and Adjusted EBITDA growth of at least 20%. The company projected third-quarter same-store sales growth of 3.0% to 4.0% and Adjusted EBITDA growth of at least 13% in that period.

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