On this episode of Run the Numbers, CJ breaks down Jersey Mike’s S-1 and the franchise machine behind more than $4 billion in sandwich sales. He explains how an asset-light royalty model works, why franchise economics can be so powerful, what Blackstone saw in the business, and what the filing reveals about growth, margins, and the real money behind the subs.

—

SPONSORS:

RightRev is an automated revenue recognition platform that lets your product team ship new pricing without asking finance for permission, and your sales team close deals without creating downstream chaos. Check out their free tool at calculator.rightrev.com It scores your rev rec process, shows what's exposing you to risk, and tells you exactly where to focus before it bites you in the rear end. Check it out at https://calculator.rightrev.com

Pulley is an equity management platform that lets you issue options, model dilution, and complete 409As without your cap table turning into a spreadsheet disaster. Founders raising, hiring, and scaling use Pulley to keep equity clean and stay focused on building. Learn more or request a demo at Pulley.com/mostlymetrics

Rillet is an AI-native ERP built for modern finance teams that want to replace NetSuite and close faster. With revenue recognition, close management, multi-entity support, and native Stripe and Salesforce integrations, Rillet helps scaling companies run their finance stack in one place. Hundreds of teams, including Windsurf and Mercor, use Rillet to make the zero-day close real. Book a demo at https://www.rillet.com/cj

Maximor is an autonomous finance platform that runs order-to-cash, procure-to-pay, the close, cash management, and reporting on self-learning agents instead of a dozen disconnected tools. One PE-backed customer cut their close in half, took audit findings from seven to zero, and cut back-office costs by 70% in six months. You pay for outcomes, not seats. See it at maximor.ai

Brex is an intelligent finance platform with AI-powered agents that capture expenses automatically, enforce policy before the spend happens, and close your books in minutes instead of weeks. 35,000+ companies like OpenAI, Coinbase, Anthropic, and DoorDash already run on Brex. It's time to get Brex AF. Learn more at https://www.brex.com/metrics

Anrok is the sales tax platform that watches your exposure everywhere, automates compliance, and flags risk before it turns into a surprise back-tax letter from a state you've never set foot in. Companies like Anthropic, Notion, and Vanta already trust Anrok to stay ahead of rules that move faster than any spreadsheet can. Talk to a sales tax expert for a personalized exposure estimate at anrok.com/rtn

—

LINKS:

Mostly Talent: https://mostlymetrics.typeform.com/to/cLTxtAsN

CJ: https://www.linkedin.com/in/cj-gustafson-13140948/

Mostly metrics: https://www.mostlymetrics.com

—

TIMESTAMPS:

0:00 Sell $4B in subs, own none of the stores

0:33 Origin story: Peter Cancro buys a sub shop at 17

1:47 It's a royalty business

2:42 Key metrics

6:07 What you're actually buying

6:42 The three revenue streams

7:19 The franchisee's P&L

10:00 Sponsors — RightRev | Pulley | Rillet

13:02 Corporate P&L: 47% EBITDA margins

13:33 The Blackstone math

14:38 $2.1B whole business securitization

15:09 Full EBITDA bridge

16:00 The CEO buying back the 2%

17:10 Red flag 1: Up-C structure

18:11 Red flag 2: tax receivable agreement

18:45 Red flag 3: controlled company governance

19:05 Red flag 4: sponsor already took $500M

19:29 Red flag 5: charitable donations added back

20:13 Red flag 6: cheap debt maturing in 2029

20:52 Sponsors — Maximor | Brex | Anrok

23:56 Valuation: $10–12B

24:32 Peer comparison

25:27 How do you underwrite $12B?

25:58 Misc: quantum attack on the provolone

26:28 The hidden 53rd week

26:57 No drive-thru is a feature

27:13 Verdict

27:56 Credits

#RunTheNumbersPodcast #IPO #Investing #BusinessStrategy #FinanceLeadership

Jersey Mike’s S-1 Breakdown: How a $4.2B Sandwich Machine Works

Run the Numbers

Jersey Mike’s S-1 Breakdown: How a $4.2B Sandwich Machine Works