Jersey Mike's Q3 Sales Accelerate to 3.0%, Adds $200M Capital Return
JMKE is trading near its 52-week low of $15.96 (9.1% above the low).
Summary
Same-store sales accelerated to 3.0% in Q3 from 2.3% in Q2, with growth again driven by transactions rather than price. Systemwide sales rose 11% to $1.204 billion and revenue climbed 10% to $209 million on 80 new openings and 8.8% net unit growth. Adjusted EBITDA jumped 20% to $125 million, but GAAP net income fell to $10 million from $32 million, mostly a $29 million one-time non-cash equity comp charge tied to the IPO, leaving a $0.05 diluted loss per share; adjusted EPS was $0.23. The board approved up to $100 million of buybacks and a $0.35 per share special dividend, part of up to $200 million of capital return, payable November 19 to holders of record November 5. Full-year guidance calls for same-store sales of at least 2.5%, unit growth of at least 8% and Adjusted EBITDA growth of at least 20%, and the company also sees same-store sales growth in 2026. The 8:30 AM ET call today is the next checkpoint on margins and the capital return plan.
At the time of this announcement, JMKE was trading at $17.41 on NYSE in the Trade & Services sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $15.96 to $24.99. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.