Jersey Mike’s (NYSE:JMKE) Issues Earnings Results, Beats Estimates By $0.07 EPS

Jersey Mike’s (NYSE:JMKE) issued its quarterly earnings data on Wednesday. The company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.07, FiscalAI reports. The company had revenue of $209.00 million for the quarter. The firm’s quarterly revenue was up 10.0% compared to the same quarter last year.

Here are the key takeaways from Jersey Mike’s’ conference call:

• Same-store sales grew 3% in the third quarter, accelerating from 2.3% in Q2 and driven primarily by transaction growth, which management said outperformed the broader fast-casual industry.
• Digital sales mix rose approximately 100 basis points to 43%, while loyalty registrations increased 21% year to date. Management expects expanded digital marketing, first-party data and personalized engagement to support longer-term traffic and frequency gains.
• Jersey Mike’s opened 80 stores in Q3 and 210 year to date, reaching 3,456 locations and approximately 9% net unit growth. Management highlighted strong new-store economics, a five-year domestic development pipeline and expanding international opportunities, including an imminent U.K. launch.
• Revenue increased 10% and adjusted EBITDA rose 20% year over year, aided by the transition away from the area director model. The company also authorized up to $100 million in share repurchases and declared a $0.35 special dividend.
• Management’s full-year outlook calls for at least 2.5% same-store sales growth, at least 8% net unit growth and at least 20% adjusted EBITDA growth, but it cited continued consumer-confidence softness and expects approximately $25 million of Q4 net interest expense with net leverage at 3.9 times.

Jersey Mike’s Price Performance

Shares of NYSE JMKE traded up $0.65 during midday trading on Wednesday, reaching $17.61. 4,174,424 shares of the company traded hands, compared to its average volume of 3,196,711. The stock’s 50-day moving average is $19.28. Jersey Mike’s has a 52 week low of $15.96 and a 52 week high of $24.99. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.36.

Insider Transactions at Jersey Mike’s

In other Jersey Mike’s news, major shareholder Holdings L.P. Blackstone II sold 2,572,560 shares of the business’s stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $21.85, for a total transaction of $56,210,436.00. Following the sale, the insider directly owned 143,699 shares in the company, valued at approximately $3,139,823.15. The trade was a 94.71% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Submarine Buyer Llc sold 2,572,560 shares of the business’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $21.85, for a total transaction of $56,210,436.00. Following the sale, the insider owned 143,699 shares in the company, valued at $3,139,823.15. This trade represents a 94.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have purchased 31,584 shares of company stock worth $726,432 and have sold 9,938,318 shares worth $217,152,248.

Wall Street Analysts Forecast Growth

JMKE has been the subject of several recent research reports. Tigress Financial upped their price target on shares of Jersey Mike’s from $29.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday, September 11th. Raymond James Financial cut their price objective on shares of Jersey Mike’s from $29.00 to $26.00 and set an “outperform” rating on the stock in a research report on Friday, October 16th. Wall Street Zen raised shares of Jersey Mike’s from a “sell” rating to a “hold” rating in a research note on Sunday, September 13th. Truist Financial initiated coverage on shares of Jersey Mike’s in a research report on Monday, August 24th. They issued a “buy” rating and a $30.00 target price for the company. Finally, Loop Capital started coverage on shares of Jersey Mike’s in a research note on Monday, August 24th. They issued a “buy” rating and a $40.00 price target on the stock. Twenty-one investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $27.78.

About Jersey Mike’s

Jersey Mike’s, commonly known as Jersey Mike’s Subs, is a fast-casual restaurant company focused on submarine sandwiches and related food offerings. Its menu includes hot and cold subs, wraps, salads, beverages and desserts, with catering services also available at many locations.

The business operates primarily through a franchise-based model under the Jersey Mike’s Subs brand. Restaurants are known for preparing sandwiches to order, including sliced meats and cheeses, fresh vegetables and the company’s signature “Mike’s Way” preparation.

Jersey Mike’s traces its roots to 1956, when the original submarine shop opened in Point Pleasant, New Jersey.