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Jersey Mike's slips on debut after $1 billion IPO
The offering priced at $23, and Jersey Mike's sold about 13.8 million shares, expecting roughly $301 million in net proceeds largely to repay debt.
Jersey Mike's debuted on the New York Stock Exchange with a cautious open after raising about $1 billion in an IPO backed by Blackstone, with the stock opening 8.7% below its $23 offer price and then closing at $21.63, down nearly 6% for the day. The $23 offer price values the Manasquan, New Jersey, company at about $7.3 billion.
The IPO was priced at the midpoint of the range targeted by underwriting banks including Morgan Stanley, Jefferies Financial Group and JPMorgan Chase. Jersey Mike's sold roughly 13.8 million shares, and expects approximately $301 million in net proceeds, most of which will be used to repay debt.
Existing holders represented about 68% of the shares sold, led by Blackstone and the Abu Dhabi Investment Authority. Blackstone also will retain about two-thirds of the company's voting power.
Jersey Mike's runs more than 3,300 locations and generated about $4.2 billion in systemwide sales in 2025, with established restaurants growing sales at an average of 7% per year and new openings at a double-digit annual rate, according to market research cited in the filing. Morningstar analyst Ari Felhandler said the growth is difficult given low switching costs and low barriers to entry in restaurants, while Renaissance Capital strategist Matt Kennedy pointed to the IPO as a signal that US listings are not limited to AI companies.