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In an era of sci-fi IPOs selling space adventure, large language models and semiconductors, the flotation of a submarine sandwich chain with Danny DeVito as its brand ambassador is refreshingly prosaic. But just like SpaceX and OpenAI, the upcoming market debut of Jersey Mike’s Subs requires would-be investors to take a leap of imagination.
Jersey Mike’s is the first quick-service restaurant to come to market in the US since Cava in 2023, a test of appetite for a sector pinched by concerns over consumer spending. Since early 2025, it has been controlled by Blackstone, which took a majority stake that year at a reported $8bn valuation.
It’s an appealing tale of American graft. Former chief executive Peter Cancro bought the small-scale Jersey Shore sub shop back in 1975, when he was a 17-year-old employee. It now ranks as America’s fourth-largest sandwich chain by sales behind Subway, Panera and Arby’s, according to Technomic data. A targeted IPO valuation of up to $12bn, according to people familiar with the situation, would rank it alongside Domino’s Pizza.
Subs are not an obvious growth industry. But Jersey Mike’s has expanded its revenue and ebitda at a healthy clip, and increased its stores, almost all of which are franchised, by nearly 10 per cent during the past year.
Even so, these are not numbers that can justify an 11-figure valuation. If Jersey Mike’s can continue to grow its preferred adjusted ebitda measure at the 19 per cent annual growth rate it experienced over the past five years, it would make $551mn in 2028. Add in the company’s $2.1bn of debt, and that suggests an IPO valuation of 28 times that future ebitda. That’s higher than chicken-wing outlet Wingstop, on 18 times, and Domino’s, at 13. It is, though, a similar multiple to Elon Musk’s SpaceX.
The hope — not least among the listing’s 27 underwriters, four more than worked on SpaceX’s debut last month — is that Jersey Mike’s can sell potential investors on a growth story similar to that of Cava, presented as uniquely positioned for a Mediterranean moment. Shares in the salad chain trade at 31 times adjusted ebitda, giving a flavour that is more Palantir than pita.
Jersey Mike’s might argue the secret ingredient is growth. It has plans to increase its US store count over time, with a pipeline equivalent to roughly half what it has now, and add 300 stores in each of Canada and the UK; Cancro is overseeing the latter himself. Getting Britons salivating over a “Stickball Special” isn’t quite as far-fetched as Musk setting up a city on Mars, but it’s risky enough to suggest a more earthly valuation might be appropriate.
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