Subway explores sale of sandwich chain
The sandwich chain could be valued at $10 billion and could draw interest from corporate buyers and private equity firms
The Subway sandwich chain may soon be on another company's menu.
The company has reportedly retained advisers to explore a sale of the closely held sandwich shop, according to the Wall Street Journal.
Subway is expected to attract potential corporate buyers and private-equity firms, and could be valued at more than $10 billion, according to people familiar with the situation.
Things are in the very early stages and it is possible there won’t be a sale or other deal.
SUBWAY UNVEILS NEW 'SUBWAY SERIES' MENU WITH BIG PROMOTION
A Subway restaurant location. (iStock / AP Newsroom)
"As a privately held company, we don’t comment on ownership structure and business plans," Subway said. "We continue to be focused on moving the brand forward with our transformational journey to help our franchisees be successful and profitable."
Subway has been owned by its two founding families for more than five decades.
Subway’s approximately 21,000 U.S. locations did $9.4 billion in sales in 2021, up 13% from the year prior as the chain recovered from the pandemic.
The company had around 37,000 stores around the world as of 2021 and was the biggest restaurant chain by U.S. locations.
One of Subway's new sandwiches, "The Monster," which it says is "piled high with thick, juicy steak, crisp bacon, Monterey cheddar, crisp green peppers and red onions served toasted on Artisan Italian bread and topped with creamy Peppercorn Ranch" dr (Subway)
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The company had been run by late co-founder Fred DeLuca for many decades, before he was diagnosed with leukemia, and his sister Suzanne Greco took the reins of the company until she retired in 2018.
Peter Buck, who lent DeLuca $1,000 to open a sandwich shop in Bridgeport, Conn., in 1965 and helped co-found the chain, died in 2021.
A Subway restaurant is seen inside a Walmart Supercenter store. ((Photo by J.D. Pooley/Getty Images) / Getty Images)
Chief Executive John Chidsey has worked to turn around the chain since taking the helm in November 2019. He has closed locations, restructured company operations and focused on Subway’s menu and food quality.
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The sandwich chain said in October that its same-store sales rose 8.4% in its third quarter compared with the same period in 2021.