Jersey Mike's stock falls 3% in public market debut after pricing shares at $23
📰 source: cnbc_topnews · 💼 business
jersey mike's stock fell about 3% on its first day of trading thursday after pricing at $23 per share. the stock opened at $21, below the ipo price. the company sold 43.5 million shares, raising roughly $1 billion and valuing it at $7.3 billion — the largest-ever initial fundraise for a restaurant ipo.
the chain has nearly 3,300 locations, making it the second-largest hoagie sandwich chain in the u.s. behind subway. it reported net income of $55 million on revenue of $724 million last year, with same-store sales up 3%. ceo charlie morrison, who previously led wingstop's ipo, said the chain's higher-income customer base has insulated it from consumer pullback. he noted positive transaction growth and sees potential for 15,000 restaurants worldwide, half in the u.s. and half internationally.
jersey mike's plans to use the proceeds to pay down debt. founder peter cancro, who started as a 14-year-old employee in 1971 and later bought the shop, signed a master franchise deal to enter the uk and ireland. the successful debut signals investor appetite for franchise-heavy restaurant models.
why it matters: jersey mike's ipo is the largest ever for a u.s. restaurant, signaling investor appetite for eateries with strong franchise models.
source: cnbc_topnews
sentiment: -0.30 · impact: 0.30