The Blackstone-backed restaurant chain is raising around $1 billion as it prepares to begin trading on the NYSE.
Jersey Mike’s is heading to Wall Street after pricing its U.S. initial public offering at $23 per share, right at the midpoint of its expected range. The deal values the sandwich chain at around $7.3 billion and ranks among the biggest U.S. restaurant IPOs in recent years.
KEY DETAILS
The offering involves around 43.5 million shares, raising approximately $1 billion for the company and selling shareholders.
Jersey Mike’s operates about 3,300 locations across the U.S. and Canada and plans to expand internationally. It is the second-largest sub-style sandwich chain in the U.S. by sales, behind Subway.
The company’s history dates back to 1956, when former CEO Peter Cancro began working at its Point Pleasant, New Jersey location. He bought the original store in 1975 and later began franchising the brand.
Private equity giant Blackstone acquired a majority stake last year in a deal that valued Jersey Mike’s at around $8 billion. Following the IPO, Blackstone will retain roughly two-thirds of the company’s voting power.
MARKET REACTION
The IPO comes during a strong year for U.S. listings. Companies in technology and industrial sectors have helped push IPO fundraising above $130 billion, although consumer and retail deals have remained scarce.
Jersey Mike’s is also the biggest restaurant IPO since Cava raised $318 million at a $4.7 billion valuation in 2023.
WHY IT MATTERS
The listing gives investors a fresh way to gain exposure to the restaurant sector while offering Blackstone an early opportunity to sell part of its investment. It also provides a test for appetite toward consumer IPOs after a relatively quiet period.
Jersey Mike’s shares are scheduled to begin trading Thursday on the New York Stock Exchange under the ticker JMKE. Investors will be watching the opening price and early trading closely as the market decides whether the sandwich chain can live up to its $7.3 billion valuation.
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Source: Reuters
Time: 1:00 PM EEST
