Jersey Mike's targets 15,000 locations and higher unit volume

Jersey Mike's is pursuing an aggressive growth strategy aimed at doubling its average unit volume from $1.4 million to over $2 million. CEO Charlie Morrison has outlined a plan to expand the chain from its current 3,300 units to a total of 15,000 locations, split equally between domestic and international markets.

To drive this expansion and attract a more diverse Gen Z demographic, the company is shifting its marketing focus. While maintaining traditional television advertising with ambassadors like Danny DeVito and Eli Manning, Jersey Mike's has increased its digital media marketing spend from less than 1% to 20% of its budget. This shift has contributed to a 22% year-to-date increase in loyalty registrations.

On the financial side, Tigress Financial recently raised its price target for Jersey Mike's (NYSE: JMKE) to $30.00, maintaining a “buy” rating. The company reported a second-quarter same-store sales increase of 2.3%, with third-quarter momentum tracking at approximately 3%.