Bernstein raises Jersey Mike’s Subs stock price target on sales momentum

Jersey Mike's Subs (NYSE:JMKE) experienced a boost in its stock price target from Bernstein SocGen Group, which now stands at $27.00, up from $26.00. Despite the increased target, the firm maintains a Market Perform rating on the stock. Currently, the stock trades at $21.96, indicating approximately 23% upside potential to the new target.

Bernstein highlighted the company's sales momentum, which was noted to have continued into the third quarter, even with lower pricing. The firm forecasted a 2.9% growth in same-store sales for fiscal year 2026, supported by 2.3% transaction growth and modest pricing. Factors contributing to this growth include digital engagement, loyalty programs, disciplined menu innovation, catering, and first-party delivery.

The firm projects adjusted EBITDA of $462 million for the next twelve months, up from $305 million over the last year, driven by impressive gross profit margins of 66%. The price target reflects expectations that potential Blackstone-related overhangs and the relative valuations of Chipotle Mexican Grill, Wingstop, and Dutch Bros limit further upside.

Jersey Mike's Subs reported a strong second-quarter performance, with revenue increasing by 10% to $208 million, same-store sales growth at 2.3%, and adjusted EBITDA up by 7% to $114 million. The company added 83 new locations, bringing its total to 3,378 stores, an 8% increase year-over-year. Other analysts have also updated their views on the company, with BofA Securities raising its price target to $29 and Stifel maintaining a Buy rating with a $27 target.