Jim Cramer Says Jersey Mike’s (JMKE) Could Be at the Start of a Longer-Term Rally

Mad Money host Jim Cramer expressed optimism about Jersey Mike's Subs Inc. (JMKE) on September 9, noting that the Blackstone-backed sandwich chain could be at the beginning of a long-term rally. After coming public in mid-July without much fanfare, the stock initially fell 6%, but it surged over 7% on the morning of September 9, following the company's better-than-expected Q2 results.

Cramer pointed to the company's in-line quarter, better-than-expected same-store sales guidance, and a 7% stock increase as reasons for his bullish outlook.

In Q2, Jersey Mike's reported $208 million in revenue, up 10% year-over-year, and systemwide sales increased 10% to $1.210 billion. Same-store sales rose 2.3%, driven mainly by transactions, while the company added 83 stores, reaching 3,378 locations, and saw an 8.1% net unit growth. Management forecasts 2.5% to 3% same-store sales growth, at least 8% net unit growth, and adjusted EBITDA growth of at least 20% for the full year of 2026. Third-quarter same-store sales are projected to grow 3% to 4%.

The company's debt stands at $2.118 billion as of June 28, with $1.5 billion in net debt and a leverage ratio of about 4.4 times. CEO Charlie Morrison noted that transactions continued to drive comparable sales growth, and the company is exploring digital marketing and social media to attract younger customers. Despite the improvement, Cramer cautions that the company's high debt load and the need to sustain transaction growth remain key concerns for potential investors.