Blackstone-owned Jersey Mike’s files for IPO at up to $12bn valuation
Blackstone-owned sandwich chain Jersey Mike’s has filed for an initial public offering, as the private equity firm looks to capitalise on stronger public markets and return cash to investors.
The sandwich chain Jersey Mike’s, majority-owned by Blackstone since 2024, has filed for an initial public offering (IPO). The private equity firm is reportedly seeking a valuation between $10 billion and $12 billion for Jersey Mike's. Blackstone acquired its majority stake when the company was valued at $8 billion. This move aims to leverage stronger public markets and facilitate cash returns to investors in Blackstone and co-investors, including the Abu Dhabi Investment Authority. If successful at the target valuation, the IPO would represent a rapid gain for these investors. Jersey Mike’s previously paid out nearly $500 million in dividends to its owners, following a securitization of some franchise fees. Jersey Mike’s generated $724 million in revenue last year, up 11% year on year, while same-store sales rose 3%. The company reported net income of $55 million. The proceeds from the IPO are anticipated to be allocated towards reducing Jersey Mike's existing debt, which stands at $2.1 billion. A substantial portion of this debt was assumed to finance Blackstone’s acquisition. This IPO filing is part of a broader trend for Blackstone, which is actively seeking to exit more portfolio companies through public listings. The firm distributed $34 billion from private equity deals in 2025, a figure supported by successful IPOs such as Medline Industries and Legence. Blackstone is also reportedly preparing a potential listing for its industrial cooling company, Copeland. This series of activities underscores a strategic shift towards capitalizing on favorable public market conditions to monetize investments. The move by Blackstone to take Jersey Mike’s public signals continued private equity confidence in the restaurant sector’s ability to generate attractive returns through public market exits. It also highlights a broader trend of private equity firms leveraging IPOs as a key strategy for liquidity and value realization, particularly for consumer-facing businesses with demonstrated growth and revenue streams.