Jersey Mike's shares fall 3% in NYSE debut

Investing.com -- Jersey Mike's stock dropped about 3% during Thursday afternoon trading following its public market debut on the New York Stock Exchange under the ticker symbol JMKE.

The stock began trading at $21 per share, falling short of its initial public offering price of $23 per share. The IPO price was set at the midpoint of the anticipated range of $21 to $25 per share.

Jersey Mike's sold 43.5 million shares in the offering, raising approximately $1 billion and establishing a company valuation of $7.3 billion. The fundraising amount ranks among the largest ever for a restaurant company initial public offering.

The sandwich chain operates nearly 3,300 locations across the United States, positioning it as the second-largest hoagie sandwich chain in the country after Subway. Jersey Mike's is now the largest publicly traded chain in the sandwich category.

The company recorded net income of $55 million on total revenue of $724 million last year. Same-store sales, which measure sales growth at restaurants open for at least one year, increased 3% during the same period.

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