Jersey Mike’s Subs Inc. reported September 9 that second-quarter comparable sales rose 2.3%, primarily through transactions, as digital channels represented 43% of system sales, up from 41% a year earlier.
The 13-week results through June 28 show system sales of $1.210 billion and company revenue of $208 million, both up 10%. System sales include franchise customers’ purchases; company revenue reflects the franchisor’s business.
The chain opened 83 restaurants and closed five, adding 78 net locations for a total of 3,378. Net income fell to $37 million from $59 million, while non-GAAP adjusted EBITDA rose approximately 7% to $114 million.
Digital sales include third-party platforms, the app and website, so that share extends beyond company-owned channels.
The $1.376 million average unit volume normalizes trailing sales to 364 days. Its comparable base covers traditional restaurants open at least 425 days.
The filing separates advertising timing from corporate costs#
The quarterly filing shows advertising revenue of $57 million against $54 million of advertising expense. A year earlier, the figures were $54 million and $41 million. That left a $3 million contribution, down from $13 million a year earlier, as revenue and expense followed different schedules.
General and administrative expense rose to $66 million, an increase of $32 million. The filing identifies $20 million of incremental area-director buyout costs, $7 million of IPO costs and $6 million of costs associated with the corporate transition. Lower expense under the former area-director program partly offset the increases, reflecting the move to an internally staffed franchise-support model.
These line items describe changes in the corporate cost structure, not ingredient or hourly labor costs at a typical franchised shop. A $14 million gain on sales of company-operated restaurants also affected reported earnings.
The advertising comparison is sensitive to timing: revenue and expense recognition can change a quarter’s profit without a comparable change in store demand. Reading those disclosures alongside the sales figures separates that accounting effect from the performance of restaurants serving customers.
The IPO filing already previewed the quarter#
Jersey Mike’s July 20 registration statement had already included preliminary second-quarter figures. September’s report formalizes that earlier preview.
The registration statement also explains the marketing strategy behind the digital business. Historically, Jersey Mike’s emphasized national and regional television advertising and sponsorships to build awareness. It described plans for more selective regional and local activity and greater use of digital and social channels closer to a purchase decision.
The MyMike’s app combines menu browsing, restaurant search, ordering and tracking of Shore Points rewards. Members can also view market promotions through the app. The filing reported more than 12.5 million active loyalty members at the end of 2025. That is a historical membership count, not a count of customers newly acquired during the second quarter.
Its digital marketing channels include search, email, text and social media. The filing describes customer segmentation as a further opportunity, supported by investments in first-party data and social engagement. The strategy depends on using that information to target messages; the filing does not quantify incremental traffic from those changes.
QSR Pro Staff
The QSR Pro editorial team covers the quick service restaurant industry with in-depth analysis, data-driven reporting, and operator-first perspective.
More from QSR