The sharp GAAP net income decline and decelerating same-store sales growth are the key negatives, but the raised adjusted EBITDA guidance and accelerating Q3 SSS trajectory provide a partial offset. Traders should watch the Q3 conference call for details on the advertising fund timing reversal and the sustainability of transaction-driven SSS growth.
Price Chart
Executive Summary
Jersey Mike's reported Q2 FY2026 revenue of $208M (+10% YoY), in line with consensus of $208.7M, but GAAP net income fell sharply to $37M from $59M YoY due to non-routine expenses, advertising fund timing, and higher interest costs. The company guided for FY2026 adjusted EBITDA growth of at least 20% and same-store sales growth of 2.5-3.0%, with Q3 SSS accelerating to 3.0-4.0%. The headline earnings decline and GAAP EPS miss are the primary bearish signals, partially offset by strong unit growth and a raised adjusted EBITDA outlook.
Key Financial Metrics
Key Facts
- Total revenue of $208M (+10% YoY) was roughly in line with consensus of $208.7M.
- GAAP net income fell 37% YoY to $37M from $59M, driven by non-routine expenses, advertising fund timing, and higher interest expense.
- Adjusted EBITDA rose 7% to $114M; excluding a $10M advertising fund timing impact, adjusted EBITDA grew 18%.
- Same-store sales grew 2.3% in Q2, decelerating from 3.6% a year ago; FY2026 guidance calls for 2.5-3.0% growth.
- Systemwide sales grew 10% to $1.210B, and net unit growth was 8.1% with 83 new store openings.
- Full-year FY2026 guidance: adjusted EBITDA growth of at least 20%, net unit growth of at least 8%, and Q3 SSS growth of 3.0-4.0%.
- GAAP EPS was not explicitly stated in the filing; the company reported net income of $37M on a diluted share count not disclosed in the press release.
Financial Impact
GAAP net income declined 37% YoY to $37M; adjusted EBITDA grew 7% to $114M. Revenue in line with consensus.
Risk Factors
- GAAP net income decline of 37% YoY signals significant earnings pressure from non-routine costs and higher interest expense.
- Same-store sales growth decelerated to 2.3% from 3.6% a year ago, indicating potential softening in core traffic trends.
- The adjusted EBITDA guidance of at least 20% growth relies on the reversal of advertising fund timing and continued cost discipline, which may not materialize as expected.
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0002127043-26-000008 |
| Document: jmke-20260909.htm | 0002127043-26-000008 |
| Document: 0002127043-26-000008-index-headers.html | 0002127043-26-000008 |
| Document: 0002127043-26-000008-index.html | 0002127043-26-000008 |
| Document: 0002127043-26-000008.txt | 0002127043-26-000008 |
| 8-K Data (Synthetic) | 0002127043-26-000008 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 9, 2026 23d ago | 8-K | $22.37 $20.32 | ▲ +9.16% | ▲ +8.83% | $16.57 (+25.93%) |
Aug 4, 2026 8w ago | Insider Cluster | $23.29 $21.90 | ▼ −5.97% | ▼ −5.87% | $16.57 (−28.85%) |
Aug 4, 2026 8w ago | 8-K | $23.29 $21.90 | ▼ −5.97% | ▼ −5.87% | $16.57 (−28.85%) |
Jul 30, 2026 9w ago | 3 | $21.63 $22.89 | ▲ +5.83% | ▲ +2.20% | $16.57 (−23.39%) |
Jul 20, 2026 10w ago | S-1/A | — | awaiting T+5 | — | — |
US Market Status
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