The Big Bite: Blackstone’s $8 Billion Jersey Mike’s Subs Acquisition

Jersey Mike's Premium Deli Meats Selection

The sandwich industry's landscape is dramatically shifting as Jersey Mike's prepares to expand from 3,000 to 10,000 locations under Blackstone's new majority ownership. This transformative $8 billion deal will accelerate the chain's growth into Canada while maintaining its commitment to fresh-sliced, made-to-order subs that have made it America's fastest-growing restaurant chain.

by
November 20, 2024

In a landmark acquisition, private equity firm Blackstone has announced plans to acquire a majority stake in Jersey Mike’s Subs, marking one of the largest restaurant industry deals of recent years.

Deal Structure

 The acquisition is valued at approximately $8 billion, with current CEO Peter Cancro maintaining a significant equity stake and leadership position. The transaction is expected to close in early 2025.

Current Market Position

Growth Initiatives

 The investment will support:

  • Expansion to 5,000+ domestic locations within five years
  • Ultimate goal of 10,000 U.S. stores
  • Canadian market entry in 2024
  • Technology infrastructure improvements

Financial Performance

 Key metrics include:

  • 2022 U.S. systemwide sales: $2.68 billion
  • Average unit volumes: Over $1.3 million
  • Projected annual growth: 13-15%

Strategic Outlook

This acquisition positions Jersey Mike’s for significant expansion in the fast-casual dining sector. With Blackstone’s resources and expertise in scaling franchise businesses, the chain is poised for continued growth and innovation in the coming years.

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