Jersey Mike's Subs Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 10% year over year to $209 million for the quarter ended September 27, 2026.
• Royalties and other revenue grew 12% to $143 million, while advertising revenue increased 8% to $57 million.
• Net income for the quarter was $10 million, down from $32 million in the prior year, driven by a $29 million one-time non-cash equity-based compensation charge related to the IPO and IPO-related professional expenses.
• Net loss attributable to Jersey Mike's Subs Inc. was $11 million, or $(0.05) per diluted share of Class A common stock.
• Adjusted EBITDA increased 20% to $125 million from $104 million in the prior year, driven by net store growth and same-store sales growth, and benefiting from $9 million in lower expenses related to the prior Area Director program.
• Adjusted Net Income was $74 million and Adjusted EPS was $0.23.
• Operating cash flow for the first three fiscal quarters of 2026 was $177 million.
• Capital expenditures for the first three fiscal quarters of 2026 were $7 million.
• As of September 27, 2026, total debt was $1.8 billion and cash, cash equivalents, and restricted cash were $325 million.
• Systemwide sales increased 11% year over year to $1.204 billion.

Guidance and Future Outlook:

• Full-year fiscal 2026 outlook updated to include same-store sales growth of at least 2.5%.
• Full-year fiscal 2026 outlook includes net unit growth of at least 8%.
• Full-year fiscal 2026 outlook includes Adjusted EBITDA growth of at least 20%.

Business Segments and Product Lines:

• Same-store sales increased 3.0%, primarily driven by transaction growth.
• Digital sales mix increased to 43% from 42% in the prior year.
• Opened 80 new stores in the quarter, driving net store growth of 8.8% year over year.
• Total systemwide store count reached 3,456 as of September 27, 2026, including 3,415 stores in the United States (3,393 franchised, 22 company-owned) and 41 international franchised stores.
• Average Unit Volume (AUV) was $1.386 million, up from $1.365 million in the prior year.

Market and Competitive Landscape:

• Jersey Mike's is recognized as the top-rated QSR brand in 2026 and the #1 Best Sandwich Chain in America in 2025.
• The company differentiates through its "A Sub Above" positioning, emphasizing fresh-sliced meats and cheeses.

Risks and Challenges:

• Forward-looking statements are subject to uncertainty and changes in circumstances, including factors beyond the company's control that could cause actual results to differ materially from expectations.
• The company notes that a reconciliation of forward-looking Adjusted EBITDA growth to GAAP net income growth cannot be provided without unreasonable effort due to the inherent difficulty of forecasting adjusting items.

Management Commentary and Tone:

• CEO Charlie Morrison stated the company continues to see meaningful traction from digital marketing initiatives to expand consumer reach and drive frequency.
• Management noted that same-store sales accelerated sequentially in the third quarter, with growth driven by transactions for the third consecutive quarter.
• Strategic goals include driving average unit volumes to $2 million, growing cash-on-cash returns for franchise owners, and expanding the domestic and global footprint.

Other Key Points:

• The Board of Directors approved a share repurchase authorization of up to $100 million of Class A common stock.
• A special cash dividend of $0.35 per share of Class A common stock was declared, payable on November 19, 2026, to holders of record as of November 5, 2026.
• The company received net proceeds of approximately $301 million from the issuance of 13,782,609 shares of Class A Common Stock in the IPO, which were used to repay outstanding indebtedness.
• Adjusted Net Income and Adjusted EPS are presented for the first time this quarter, assuming the exchange of all outstanding Common Units for Class A common stock and reflecting income taxes at a blended 25% rate.