Jersey Mike’s Subs Valued at $8 Billion After Major Investment from Blackstone
Jersey Mike’s Subs has reached a significant milestone, with its valuation soaring to $8 billion following a major investment from private equity powerhouse Blackstone. This move marks the end of nearly 70 years of independent ownership for the popular sandwich chain, which has emerged as a fierce competitor to industry giants like Subway.
Blackstone revealed on Tuesday that it has acquired a majority ownership stake in Jersey Mike’s, with plans to fuel the chain’s rapid expansion across the U.S. and internationally. The infusion of capital will also support the brand’s ongoing investment in technology and digital transformation, according to a statement from the company.
Peter Cancro, the founder and CEO of Jersey Mike’s, will continue to lead the company. Having been involved in the business since he was a high-school student, Cancro remains deeply committed to its success and will retain a significant equity stake in the company. He bought the original Mike’s Subs location in 1975 at just 17 years old, and rebranded the business to Jersey Mike’s in the 1980s. Over the years, he has led the company to become a household name with nearly 3,000 locations across the U.S. and Canada.
“I believe we’re still in the early stages of Jersey Mike’s growth, and I’m confident that Blackstone is the right partner to help us continue to thrive,” Cancro said in a statement.
Jersey Mike’s now stands as the second-largest sandwich chain in the U.S. by sales, trailing only Subway. According to data from QSR Magazine, Jersey Mike’s locations generate an impressive $1.35 million per unit in sales, significantly outperforming Subway locations, which average less than $500,000 in sales.
This transaction comes on the heels of Subway’s sale to Roark Capital, another private equity firm, for $9.6 billion last year, underscoring the growing trend of private equity investment in the competitive quick-service restaurant industry.
