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.

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LINKS: 

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

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

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

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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

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