Jersey Mike’s Chain, Started with Teen’s $125,000 Loan, Sells to Blackstone for $8 Billion
By Jake Beardslee ·
November 23, 2024
Blackstone announced Tuesday its agreement to acquire a majority stake in Jersey Mike's Subs, in a transaction valuing the sandwich chain at approximately $8 billion including debt. Peter Cancro, who acquired the original store in 1975 at age 17, will maintain a minority position and continue as CEO. Michael Rivera / Wikimedia
According to company data, Jersey Mike's has expanded to nearly 3,000 locations and generated $3.3 billion in sales in 2023. Financial consulting firm Technomic reports the chain has maintained approximately 20% annual sales growth since 2019. Michael Rivera / Wikimedia
The company's path included several economic challenges. "It was a tough time: 1991 [was] my toughest recession, even beyond 2008," Cancro told "The Jedburgh Podcast," describing a period when banking failures in the Northeast forced significant corporate restructuring. In 2006, facing market pressures, the company invested approximately $15 million in store renovations. "I'll put everything on the table," Cancro said regarding the decision. TaurusEmerald / Wikimedia
Current franchise requirements include substantial initial investment ranging from $200,000 to $1.3 million per location. The company reports traditional locations average $1.2 million in annual sales, with a 1% approval rate for franchise applications. Michael Rivera / Wikimedia
"We believe we are still in the early innings of Jersey Mike's growth story," Cancro stated in the acquisition announcement. The transaction is expected to close in early 2024. Chris Light / Wikimedia
