Jersey Mike's (NYSE:JMKE) reported second-quarter earnings that topped adjusted profit estimates but fell short on revenue, as the sandwich chain forecast accelerating same-store sales growth heading into the current quarter.
Revenue for the quarter came in at $208 million, up 10% from a year earlier but below the $209 million analysts had expected.
Adjusted EBITDA rose 7% year-over-year to $114 million, ahead of the $113 million consensus estimate.
Same-store sales grew 2.3% in the quarter.
Systemwide sales reached $1.2 billion, a 10% increase from a year ago. Net income fell 37% to $37 million. Digital sales made up 43% of the total mix, and the company ended the quarter with 3,378 stores. Operating cash flow was $105 million.
For the third quarter, the company guided to same-store sales growth of 3.0% to 4.0% and adjusted EBITDA growth of at least 13%.
For the full fiscal year, it maintained guidance for same-store sales growth of 2.5% to 3.0%, net unit growth of at least 8%, and adjusted EBITDA growth of at least 20%.
Shares of Jersey Mike's rose nearly 8% on Wednesday.
