Jersey Mike's Subs Poised for Durable Growth, Truist Says

MT Newswires Live02:44

Jersey Mike's Subs (JMKE) is well-positioned for sustained growth as it shifts more of its marketing budget toward social media, a channel it has historically underused relative to peers, Truist Securities said in a note Monday.

The firm said the change, along with redirecting spending from expiring TV contracts toward higher-value placements such as live sports commercials, could accelerate brand awareness and lift comparable sales beyond the low-single-digit range the company has consistently delivered.

Truist also pointed to a highly visible pipeline of more than 1,600 store locations, most already under contract and largely driven by existing franchisees, as support for continued footprint expansion.

Jersey Mike's has demonstrated a highly portable concept with strong unit economics, and its long-term store target likely proves conservative over time, Truist added.

Truist initiated coverage of Jersey Mike's Subs with a buy rating and a $30 price target.

Price: 23.19, Change: -0.67, Percent Change: -2.81

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