Subway is exploring a possible sale of its business as the sandwich chain faces surging costs and mounting competition from deeper-pocketed rivals.
The Wall Street Journal said last month a potential sale could value Subway at more than $10 billion (€9.17 billion)
Founded in 1965 by 17-year-old Fred DeLuca and family friend Peter Buck, the company has been owned by the founding families since its first restaurant opened as 'Pete's Super Submarines' in Bridgeport, Connecticut.
Over 37,000 Restaurants
It now has more than 37,000 restaurants in over 100 countries.
In 2021, Subway decided to overhaul its menu and pour more money into marketing in a bid to win back customers with its new sandwiches amid stiff competition from Popeyes and Chick-fil-A.
Subway said on Tuesday J.P. Morgan was advising the company and will conduct the sale exploration process. There was no indication of timing or assurance that a sale will occur, it added.
The company, one of the world's largest quick-service restaurant brands, earlier this month reported a 9.2% jump in same-store sales for 2022.
Positive Sales Momentum
Subway ended 2022 achieving eight consecutive quarters of positive sales. It noted new product introductions and growth in digital and non-traditional channels as key drivers of its positive sales momentum.
The Global results showed a 9.2% increase in same-store sales, compared to 2021, and a 29.1% increase in same-store sales, compared to 2020.
The figures recorded double-digit growth in digital sales around the world, compared to 2021, and more than tripling since 2019.
"As part of our journey to transform the brand, we are improving across every aspect of our business and, after two years of record sales results, we can confidently say that Subway is getting its swagger back," said John Chidsey, CEO of Subway.
"Across every region, the team's efforts have set the stage for another year of strategic and profitable growth and exciting enhancements to our guest experience."
News by Reuters, edited by ESM – your source for the latest A Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.