Jersey Mike's Subs: Selling To More Customers While Fast Food Traffic Declines

Jersey Mike's (JMKE) is initiated at Buy, with 3% Q3 comp-store sales growth despite sector headwinds and shares trading below IPO price. JMKE's franchise model drives strong cash conversion, with 2027 cash flow trading at 25x and potential 12.9% annualized returns through 2030. Risks include negative comp-store sales, exposure to price-sensitive customers, and potential share overhang from major holders like Blackstone.