Jersey Mike's Subs (JMKE) is well-positioned for sustained growth as it shifts more of its marketing budget toward social media, a channel it has historically underused relative to peers, Truist Securities said in a note Monday.
The firm said the change, along with redirecting spending from expiring TV contracts toward higher-value placements such as live sports commercials, could accelerate brand awareness and lift comparable sales beyond the low-single-digit range the company has consistently delivered.
Truist also pointed to a highly visible pipeline of more than 1,600 store locations, most already under contract and largely driven by existing franchisees, as support for continued footprint expansion.
Jersey Mike's has demonstrated a highly portable concept with strong unit economics, and its long-term store target likely proves conservative over time, Truist added.
Truist initiated coverage of Jersey Mike's Subs with a buy rating and a $30 price target.
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