#DirectIPOSeason2JerseyMikes

Gate Direct IPO Access Season 2 Begins — Jersey Mike's

(JMKE) is a sandwich chain backed by Blackstone with over 3,300 locations across the US and Canada. Estimated price range: $21-25/share.
Subscribe with USDT or GUSD. Allocated shares will be transferred directly to your Gate stock account with no lock-up period.
Following SpaceX in Season 1, this marks the second time retail users can participate in a US IPO using USDT.
Subscriptions open July 27 at 10:00 AM (UTC+8).

* Company: Jersey Mike’s (stock code: JMKE)
* Business: Sandwich chain with over 3,300 locations in the US and Canada.

* Backer: Blackstone.

* Estimated price range: $21-25/share (final IPO price subject to change).
* Participation method: Subscription via USDT or GUSD.

* Allocated shares: It is stated that the shares will be transferred directly to your share account on Gate and there will be no lock-up period.

* This is a pre-IPO demand collection process; submitting a demand does not guarantee that you will receive all the shares you wish to purchase.

* The “indicative price range” ($21-25) is only an estimated price range.

* While participating in US IPOs has high return potential, prices can be quite volatile in the initial trading days.

* This Gate service is available depending on your country and the verification status of your account.

The Jersey Mike’s IPO is one of the most talked-about consumer company IPOs of recent times. However, it is important to evaluate both its strengths and weaknesses when making an investment decision.

Strengths

1. Strong brand and growth

* The company has more than 3,300 branches in the US and Canada.
* Because it largely operates on a franchise model, its capital needs during growth are relatively low.
* In 2025, revenue increased by approximately 11% to US$724 million, and adjusted EBITDA rose to US$339 million.

2. Blackstone Support
Blackstone's majority shareholding can be seen as positive in terms of corporate governance and growth. However, it will largely retain control even after the IPO.

3. Growth Potential
The company aims to open thousands of new stores and grow in international markets in the long term.

Risks

1. Valuation is Not Cheap

* IPO price range is US$21–25.
* This pricing gives the company a market capitalization of approximately US$6.7–7.9 billion.
* This valuation corresponds to approximately 24 times the 2025 adjusted EBITDA level; a high multiple compared to many restaurant chains.

2. Most IPO Proceeds Do Not Go to the Company
Approximately 68% of the shares offered are from the sale of existing partners. In other words, the majority of the money raised will go to existing investors (Blackstone and other shareholders), not the company. This situation may be viewed negatively by some investors.

3. Debt Level
The company has approximately $2.1 billion in debt. While a portion of the IPO proceeds will be used to reduce this debt, the leverage level is still a factor to consider.

4. Slowdown in Same-Store Sales Growth
Although growth continues, it is noted that the rate of increase in same-store sales has slowed compared to previous years.

How would I approach this?

Short-term (IPO excitement):

* If there is strong demand in the first few days of trading, the price may rise rapidly.
* However, sharp pullbacks can also be seen, just like the sharp rises experienced in the first day of IPOs.

Long-term (3-5 years):

* The company has a quality brand and a strong franchise model.
* However, the current pricing may already reflect a significant portion of this growth.

Scoring

Criteria Evaluation
Business Model ⭐⭐⭐⭐⭐
Growth Potential ⭐⭐⭐⭐☆
Financial Strength ⭐⭐⭐⭐☆
Valuation ⭐⭐⭐☆☆
Risk Medium

Overall Rating: 8/10

While it appears to be a high-quality company in the long term, the IPO price is quite ambitious. If you are considering participating, a more cautious approach might be to invest with a small portion of your total portfolio (e.g., 2-5%). It would also be beneficial to closely monitor price movements on the first trading day.