Jersey Mike's Subs Inc. (NYSE: JMKE) shares ticked up Wednesday after the sandwich chain delivered its first earnings report since going public. The numbers showed stronger store traffic and higher adjusted earnings, even as revenue landed roughly where Wall Street had penciled it in.

Revenue Rises 10%, Lands Near Estimates

For the fiscal second quarter, Jersey Mike's reported revenue of $208 million, up 10% from a year ago. That was just shy of the $208.79 million analysts had been expecting, but close enough to count as a win.

Systemwide sales also climbed 10%, reaching $1.21 billion. Same-store sales rose 2.3%, driven mostly by an increase in transactions. That's a slowdown from the 3.6% growth the company posted a year earlier, but the CEO says momentum is building.

Digital orders made up 43% of sales, up from 41% last year. Average unit volume ticked up to $1.38 million from $1.35 million. The company also opened 83 new stores during the quarter, ending the period with 3,378 locations, an 8.1% increase year over year.

CEO Charlie Morrison said same-store sales actually accelerated as the quarter went on, with transaction growth improving even as the broader restaurant industry struggles with weak traffic. He added that the company plans to keep attracting new customers, expand its digital business, and roll out new products.

Profit Falls, Adjusted EBITDA Climbs

Net income took a hit, dropping to $37 million from $59 million in the same quarter last year. The decline reflects higher interest costs and other expenses. A $14 million gain from selling company-owned stores helped soften the blow.

Adjusted EBITDA, which strips out one-time items, rose 7% to $114 million. But that figure includes a $10 million drag tied to advertising fund timing. Exclude that, and adjusted EBITDA was up a more impressive 18%.

Cash flow looks healthy too. Operating cash flow came to $105 million over the first two fiscal quarters, while capital spending was just $4 million, leaving free cash flow of roughly $101 million. The company ended the quarter with $265 million in cash and equivalents.

Jersey Mike's Issues 2026 Outlook

Looking ahead, Jersey Mike's expects same-store sales growth of 2.5% to 3% for the full year. For the third quarter specifically, it's forecasting growth of 3% to 4%.

The company also guided for net unit growth of at least 8% and adjusted EBITDA growth of at least 20% for the year.

Following the report, TD Cowen analyst Andrew Charles reiterated a Buy rating on the stock and maintained his $26 price target.

JMKE Price Action: Shares were up 1.06% at $21.04 during premarket trading on Wednesday.