Jersey Mike's CEO Charlie Morrison Talks Trading Debut

Summary

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Bloomberg Talks Podcast Summary

Episode: Jersey Mike's CEO Charlie Morrison Talks Trading Debut
Date: July 30, 2026
Host: Bloomberg
Guest: Charlie Morrison, CEO of Jersey Mike’s

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Episode Overview

This episode features an in-depth interview with Charlie Morrison, CEO of Jersey Mike’s, discussing the company’s IPO debut amidst volatile markets. The conversation explores Jersey Mike’s growth strategies, international ambitions, supply chain resilience, consumer trends, and common misconceptions about the brand’s direction—particularly under private equity ownership.

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Key Discussion Points & Insights

1. IPO Timing and Market Environment

• Why Go Public Now?
  • Despite market volatility and other fast-casual food chains struggling, Morrison asserts that Jersey Mike’s long history and robust financials make this a good time to IPO.
  • Quote (Charlie Morrison, 01:31):

    “This is a brand that's been built over many, many years… The only brand that can cite 20 consecutive years of positive same store sales growth… It’s a great time to bring this brand to the market. We can deal with some of the challenges, but really it's for the long term.”

• Banker Sentiment
  • Morrison states that bankers did not advise to pause or delay the IPO, expressing confidence in the brand’s readiness for public markets.
  • Quote (Charlie Morrison, 02:16):

    “This is a brand that's really well built for the public markets.”

2. Stock Price and Valuation Post-IPO

• Initial Stock Performance:
  • The share price dropped initially but rebounded somewhat.
• Long-Term Focus:
  • Morrison is unconcerned about day-one share prices, emphasizing long-term growth and shareholder value.
  • Quote (Charlie Morrison, 02:33):

    "We're not looking at today's price. We're not worried about this. We're worried about the long term... and we know they're going to win over the long term."

3. Strategic Use of IPO Proceeds

• Franchise Model:
  • Jersey Mike’s is 99% franchise-owned, uses an “asset-light” model, and generates strong cash flow.
• Debt Reduction:
  • IPO proceeds will primarily pay down debt to below 4.5x EBITDA, with plans to return capital to shareholders over time.
  • Quote (Charlie Morrison, 02:59):

    “We're using the primary proceeds just to pay down our debt a little bit… Over time we really will use our cash to return that capital back to shareholders…”

4. International Expansion Plans

• Focus on the UK:
  • The company is planning a strong entry into the UK, confident that British consumers will appreciate the Jersey Mike’s deli-style authenticity.
  • Morrison suggests the menu will remain largely the same, with subtle local adaptations (e.g., potentially adding salted beef).
  • Quote (Charlie Morrison, 03:49):

    “The way we do it here at Jersey Mike's, that's been part of who we are for the last 50 years… We're going to bring the brand in its full force to the UK.”

  • Quote (Charlie Morrison, 04:22):

    “Maybe we might bring salted beef to the protein mix… you might see that change. But otherwise it's going to be authentically what we've been all about at Jersey Mike's.”

5. Supply Chain & Food Safety

• Iceberg Lettuce Outbreak Concerns:

  • Jersey Mike's supply chain is unaffected by the recent silosphora outbreak tied to iceberg lettuce.
  • The company sources mainly from Salinas, CA, and preps lettuce in-store for safety.
  • Quote (Charlie Morrison, 04:54):

    “We buy it from primarily Salinas, California… We peel the outer leaves off, wash it carefully and actually shred it for our customers right there. And so we don't see any risk associated…”

• Consumer Behavior:

  • Morrison notes no significant change in customer orders or sales due to lettuce concerns.
  • Quote (Charlie Morrison, 05:28):

    “Every one of our sandwiches can be customized… Not really [seeing pushback]. I think customers understand that the supply chain moves very quickly, the product's probably out of the supply chain and everything's fine.”

6. Sales Trends & Market Data

• Summer Sales:
  • July data shows minor slowing, but Morrison attributes this to natural fluctuations, not lettuce concerns.
  • Quote (Charlie Morrison, 05:59):

    “I wouldn't look to any one or two weeks as indicative… right now we haven't seen much of it.”

  • Q1 and Q2 both showed sequentially improving performance and strong same-store sales growth.

7. Addressing Public Concerns & Social Media Criticism

• Private Equity Influence & Product Quality:
  • Responding to criticisms that sandwiches have been reduced in size or quality since Blackstone’s involvement, Morrison denies any changes.
  • Quote (Charlie Morrison, 06:57):

    “Not at all. That's just hype and social media. They like to pick on people for that reason. We haven't changed a thing. Why would we? This brand has grown 20 consecutive years…”

8. Inflation, Food Costs, and Pricing

• Managing Rising Input Costs:
  • The menu is diversified by protein, helping to manage cost swings.
  • Scale as a 3,000+ restaurant chain allows Jersey Mike’s to keep food costs at industry-leading 27% of sales.
  • Quote (Charlie Morrison, 07:37):

    “We have a very diverse lineup… over 3,000 restaurants strong. We buy in very high volumes and are able to hand that back to our franchisees… around 27% of sales, which is industry leading.”

• Price Increases:
  • Price hikes are kept measured; the model aims for balanced growth from both price and transaction volumes, with a preference for transaction-driven growth.
  • Quote (Charlie Morrison, 08:12):

    “Our long-term algorithm is low single digit same store sales growth… equally balanced between price and transaction growth. We err towards transaction growth… That quite frankly is what's been fueling our growth this year and years prior compared to the rest of the concepts out there.”

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Memorable Moments & Notable Quotes

• On IPO Confidence:

  • “This is a brand that's really well built for the public markets.” (Charlie Morrison, 02:16)

• On Preserving the Brand:

  • “We love this brand. We love the way we deliver the product and we're going to continue to do it that way for a long time to come.” (Charlie Morrison, 06:57)

• On International Expansion:

  • “We're going to bring the brand in its full force to the UK.” (Charlie Morrison, 03:49)

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Key Timestamps

• 01:12 – Introduction and current market conversation
• 01:31 – Rationale for IPO now
• 02:19 – Discussing IPO pricing and long-term focus
• 02:59 – Growth strategy and use of IPO proceeds
• 03:24 – International/UK expansion
• 04:35 – Addressing iceberg lettuce supply chain safety
• 05:15 – Customer reactions to food safety concerns
• 05:48 – Sales trends and July slowdown
• 06:33 – Social media complaints about product changes
• 07:26 – Addressing rising food costs and margin protection
• 08:12 – Price increases and transaction growth philosophy
• 08:37 – Closing remarks

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Overall Tone:
Candid, confident, and data-driven, with Morrison offering clear reassurances on the brand’s direction, growth, and resistance to media and social speculation.

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Transcript

[A]

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[B]

Bloomberg Audio Studios Podcasts Radio News I am here with the Jersey Mike CEO Charlie Morrison. Charlie, thanks for joining. Congratulations on listening today.

[C]

Thank you. It's a great day for Jersey Mike's.

[B]

I have to say I don't envy any CEO that has to list in this crazy market we're living in right now has been quite volatile, especially for a lot of your peers. I mean Sweetgreen down 4% Shake Shack down 24% year to date. Wingstop also, which you once led down 44%. So why was amid all of that, why was now the right time to ipo?

[C]

I think it's a great time to ipo. Jersey Mike's this is a brand that's been built over many, many years. We have a rich history of over 70 years, the last 20 years alone. The only brand that can site 20 consecutive years of positive same store sales growth. We've been able to navigate the choppy waters over many, many, many times through our cycle. Even this year, year to date, same store sales continue to grow. We seen sequential improvement from quarter one to quarter two, exiting quarter two at 2.3% same store sales growth, most of that driven by traffic. So it's a great time to bring this brand to the market. We can deal with some of the challenges that are in there, but really it's for the long term.

[B]

So the fundamentals look good heading into this. But was there ever a banker that was thinking, hey Charlie, maybe now's not the time, maybe we need to wait for calmer waters?

[C]

Not at all.

[B]

They told you full steam ahead.

[C]

Yeah, this is a brand that's really well built for the public markets.

[B]

What about the pricing? Because shares have fallen initially down 8.7%. They've come back, of course, now down only about 4%. What do you think of the pricing? Was the pricing off perhaps, and that's why we're falling today? Maybe valuations a little bit too pricey, too richly priced rather?

[C]

No, I don't think it has anything to do with the price. I think the market's been a little choppy over the last few days, trying to find its place again. We're not looking at today's price. We're not worried about this. We're worried about the long term and continuing to do what we do well, which is grow restaurants, grow our same store sales growth, continue to deliver great value for our shareholders and we know they're going to win over the long term.

[B]

Let's talk about the long term because now with IPO proceeds in hand, what do you want to do with what are the opportunities for growth that you're going to be pursuing?

[C]

Well, I mean we're a brand that is an asset light model. So we're 99% franchise, we generate a lot of cash, we carry some debt, we're using the primary proceeds just to pay down our debt a little bit. So we get down below four and a half times our ebitda and that's okay. Over time we really will use our cash to return that capital back to shareholders, which is very much the common practice in a business like ours. And that'll be the continued pace over time.

[B]

I know one of the growth strategies that you're pursuing is international expansion. You have big plans for the UK specifically. I know, I know the market. I lived there for a while, for about six years. They do eat the Subways, so they know sandwiches. Quality might vary there, but they love like a Tesco's meal deal where they get, you know, a sandwich and a bag of crisps, as they would call it, for £4. How do you convince them and how are you certain that a British audience would like a Jersey Mike's?

[C]

Well, we know people all over the world enjoy sandwiches and sub sandwiches. Certainly the market's been well established. What they don't know is the authenticity of how to really deliver a deli style sandwich right way. The way we do it here at Jersey Mike's, that's been part of who we are for the last 50 years. It's exactly what we're going to bring to the uk. We're going to bring the brand in its full force to the uk. And look, we have a hot sub option as well. So our cheesesteaks our hot subs, other products will be anchored on the menu and we're going to do it in a high quality way. People want that kind of authenticity and authenticity.

[B]

Anything new for us?

[C]

Absolutely. I mean, one little thing. Maybe we might bring salted beef to the, to the protein mix and lineup. We know that's a big fan favorite overseas in the UK and so you might see that change. But otherwise it's going to be authentically what we've been all about at Jersey Mike's.

[B]

I also love this subtle dig of they know subs out there, but like maybe not the real deli style. Charlie. Elsewhere here in the US there has been this real concern about the outbreak of silosphora and the concern about iceberg lettuce. I know a lot of the majority of Jersey Mike subs use iceberg lettuce. Is your supply chain affected at all?

[C]

We are not. We're not affected at all. In fact, we do buy whole head iceberg lettuce, but we buy it from primarily Salinas, California this time of year, none from Mexico. We actually take very good care of that product. We bring it in a whole head fashion. We peel the outer leaves off, wash it carefully and actually shred it for our customers right there. And so we don't see any risk associated that hasn't impacted our business.

[B]

It maybe hasn't impacted your supply chain. Chipotle said the same thing. We source it somewhere else. But yesterday they pointed out it has impacted sales because the psychological concerns. Are consumers pushing back or maybe at least not asking for lettuce on their sandwiches?

[C]

Well, every one of our sandwiches can be customized because we make it to order right in front of you. And so if a customer wants to opt out of the lettuce, that's fine with us. We'll accommodate that. Have they been done? Not really. I mean we've seen. I mean we've been eating them for the last two weeks on the road. We've been enjoying them. I think customers understand that the supply chain moves very quickly, the products probably out of the supply chain and everything's fine.

[B]

The credit card and debit card data that the Bloomberg team cracks, tracks does show a little bit of slowing in July for Jersey Mike. Certainly still growing, but a slowdown in that growth. What accounts for that then if it's not the lettuce of it all?

[C]

Well, I think there's a lot going on in the marketplace right now. I wouldn't look to any one or two weeks as indicative. Lots of things kind of ebb Flow and too often you can get too much data that will point to two different things. But right now we haven't seen much of it.

[B]

So summer sales have been strong, maybe besides a little bit of July.

[C]

Yeah, we haven't talked about anything about this particular quarter at this point. We certainly saw strong performance in the first quarter, sequentially improving in the second quarter. We exited the second quarter on a strong note as well. And so we're going to continue to play our game and execute a game plan that is going to drive long term sustainable same store sales growth.

[B]

So I hate to do this to you and I hope you don't check your social media mentions, but if you just look up Jersey Mike's there, there is just a wide swath of people who say since, you know, the Blackstone overlords came in, they've changed the sandwiches. They have, you know, shrunk in size. People love to complain that like PE comes and ruins their favorite sandwiches. Charlie, can you say here definitively, have the sandwiches changed at all, quality or otherwise? Not since you came into the helm.

[C]

Not at all. That's just hype and social media. They like to pick on people for that reason. We haven't done nothing. I mean, I've been involved almost as long as Blackstone has. We haven't changed a thing. Why would we? This brand has grown 20 consecutive years. Positive same store sales growth. We don't need to change the menu. We enjoy one of the lowest food costs in the industry. Our franchisees have some of the highest cash on cash returns in the industry. They want to grow and build more stores and they're going to do that. And so no need to change anything. We love this brand. We love the way we deliver the product and we're going to continue to do it that way for a long

[B]

time to come on the cost. Because generally this market, if you track the macro data, things like dairy, meats, the prices have been rising. How have you been accounting for that? How do you keep your margins?

[C]

Well, we have a very diverse lineup in our menu in terms of the proteins that we offer. So beef, chicken, pork, different products all within our menu and we're able to balance that over time. So as one is high, like beef prices today, we focus on other parts of our business and we've been able to maintain that over time. We also have a very scaled supply chain, over 3,000 restaurants strong. We buy in very high volumes and are able to hand that back to our franchisees in the form of a very low food cost, around 27% of sales, which is industry leading.

[B]

How about prices? Are you able to use that as a lever to charge more prices for higher prices for your sandwiches?

[C]

Certainly over time we do take price. Our long term algorithm is low single digit same store sales growth for this business that will be equally balanced between price and transaction growth. We err towards transaction growth. That's really how you grow the health of the business over time. We've taken some price as we've seen commodity inflation not nearly as much as some other brands. And that quite frankly is what's been fueling our growth this year and years prior compared to the rest of the concepts out there.

[B]

All right, Charlie, that's all we have time for. Thank you so much and congratulations again.

[C]

My pleasure. Thank you.

[B]

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[C]

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