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Jersey Mike’s Stock is Beautiful?? Pump the Brakes!!!

The creator discusses the recent IPO of Jersey Mike's Subs, deeming it significantly overpriced with a forward P/E of 40 and a trading multiple of 327, which they believe is not justified by its projected growth rates. They compare it unfavorably to Shake Shack and Cava, suggesting that while those companies are also expensive, their valuations and growth prospects are more appealing.

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Tickers discussed in this post

CAVANeutralMedium ConvictionSignal-backedSecondary

Cava, trading at $65/share with a P/E of 120, is expensive but significantly less so than Jersey Mike's, and its 24% revenue growth is superior.

SHAKNeutralMedium ConvictionSignal-backedSecondary

Shake Shack, while expensive with a P/E of 63 and next year's P/E of 51, is preferred over Jersey Mike's due to better execution and year-over-year improvement.

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