Good Morning Wolf Pack,

Today's newsletter covers Jersey Mike's making its IPO official, Einstein Bros. Bagels betting on a 300-store expansion, and a bankrupt Popeyes franchisee auctioning off 97 restaurants.

Enjoy!

Was this email forwarded to you?

Subscribe Here

FROM THE WOLF DEN

1) Jersey Mike's Makes Its IPO Official

Jersey Mike's filed for a $100 million IPO this week, less than two years after Blackstone bought a majority stake in the sandwich chain at an $8 billion valuation. It's set up to be one of the largest restaurant IPOs in years, trailing only an expected Inspire Brands offering later in 2026.

The numbers back up the timing. Jersey Mike's is pulling in $4.3 billion in system sales on average unit volumes approaching $1.4 million, and same-store sales have climbed every year for two decades straight, up a cumulative 50% over the past five years alone. System sales are up 90% since 2021. The bulk of locations are franchisee-owned.

Most of the IPO proceeds are earmarked to pay down debt, including $760 million the company borrowed earlier this year to fund a dividend back to Blackstone. It's a reminder that even the hottest brands in franchising are still very much playing the private equity game before they hit the public markets.

2) Einstein Bros. Bagels Plans to Add 300 New Bakeries by 2030

Einstein Bros. Bagels announced plans to open more than 300 new bakeries across the U.S. by 2030, a push that would take the chain from roughly 700 locations past the 1,000-unit mark. The growth will be powered by a new prototype called "Elevate the Morning," built for faster buildouts without sacrificing the fresh-baked case up front.

The bet is on a bagel category that Einstein Bros. says is now worth $5.8 billion annually and growing 5% a year, with younger customers driving much of the momentum. Loyalty members under 35 pushed a 22% year-over-year jump in store visits. CEO Jessica DePetro called it "an inflection point for both our brand and the broader bagel category."

Einstein Bros. is part of Panera Brands, alongside Panera Bread and Caribou Coffee, and the expansion comes as younger, faster-growing bagel concepts like PopUp Bagels and Jeff's Bagel Run push into the same white space.

3) Bankrupt Popeyes Franchisee Sells 97 of Its 136 Restaurants

Sailormen Inc., one of Popeyes' largest franchisees with 136 restaurants across Florida and Georgia, has found buyers for 97 of those locations through a bankruptcy auction. The five buyers are paying a combined $16.6 million, with Pulse Restaurant Group, controlled by Sailormen's own CEO David Damato, picking up the largest chunk at 50 Tampa-area restaurants for $2.69 million.

Fifty-two restaurants failed to attract bids. Sailormen has already won court approval to reject 18 of those leases, putting them on track to close by the end of the month, with a hearing still pending on the rest.

Sailormen filed for Chapter 11 in January after posting a $19 million net operating loss on $233 million in sales, citing inflation, higher borrowing costs, and post-pandemic traffic declines. It's a stark example of how quickly even a 40-year-old, 130-plus-unit operator can unwind when the underlying unit economics turn.

EXTRA SAUCE 💥

El Pollo Loco makes its debut in Idaho, entering its 10th state The Meridian restaurant is run by a 25-year California franchise group, part of a push that has the chain planning 18 to 20 new locations system-wide this year.

Cotton Patch Cafe is acquired by Local Favorite Restaurants The 46-unit Texas comfort-food chain joins a Dallas-based platform of community brands after six straight quarters of same-store sales and traffic growth.

Just Salad wins an equity investment from Knicks Finals MVP Jalen Brunson It's Brunson's first restaurant investment, and he says the sustainability-focused salad chain "checked every box" on values he wanted to back.

Dog Haus partners exclusively with Keurig Dr Pepper on a new beverage platform The 58-unit chain is ditching the two largest soda suppliers for a lineup that includes Big Red, Squirt, and nostalgic glass-bottle options.

American Franchise Academy celebrates 10 years of training franchisees Founded by a former pizza delivery driver turned global franchise executive, the academy has now certified hundreds of managers and franchisees across the industry.

Camp Bow Wow slashes its investment range by up to $800,000 Parent company Propelled Brands redesigned the dog care concept's footprint to cut franchisee costs without shrinking the number of cabins or yard space.

Club Pilates franchisee signs a 70-unit development deal NYC operator Saber Ammori is teaming up with Cohere Capital to form Renew Fitness, instantly becoming one of the brand's largest multi-unit groups.

Krispy Kreme signs a five-year deal to enter the Baltic States Apollo Group plans to open the donut brand's first Tallinn location this year, with an option to expand into Finland by the end of 2027.

CarePatrol partners with LTCareNav on long-term care planning
The senior care franchise is pairing its local advisors with a digital planning platform to help families prepare for care needs before a crisis hits.

WOLF BITES

• Joey Chestnut wins his 18th Nathan's hot dog eating title 🌭

• A rare copy of the Declaration of Independence was found in a UK archive 📜

• Bending Spoons went public and briefly hit a $25 billion valuation 📈

• Taylor Swift and Travis Kelce had the most confusing wedding of the century 💍

• The James Webb telescope found a hydrogen-rich atmosphere on a lava world 41 light-years away 🪐

• Trump memecoin investors lost $3.8 billion, analysis finds 😬

• Microsoft to cut 4,800 jobs, overhaul Xbox unit 👀

That’s it for this edition of The Wolf Report. Feel free to reply with any questions or feedback. Thanks and see you Thursday!

— The Wolf