Subway To Explore Possible Sale, Says Company

Subway, one of the world’s largest restaurant brands, announced on Tuesday that its shareholders are exploring a possible sale of the company. 

“There is no indication of timing or assurance that a sale will occur. J.P. Morgan is advising the company and will conduct the sale exploration process,” it said in a statement.

The company does not intend to make any further public comment regarding the process until it has been completed, it added.

“The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience,” the company said in the release.

According to The Wall Street Journal, which originally reported the corporation had recruited consultants to investigate a sale last month, a purchase might be worth more than USD 10 billion.

Subway, which has over 37,000 shops in over 100 countries, said earlier this month that same-store sales increased 9.2 per cent last year. Same-store sales at North American outlets grew 7.8 per cent in 2022, Subway claimed, smashing decade-old average weekly sales records.

Subway, which is privately held, is not compelled to reveal its financial data, but it has recently released sales updates as it pursues a turnaround campaign.

According to a press statement issued earlier this month, the firm has posted eight straight quarters of revenue increase. Since 2019, digital sales have more than quadrupled. After years of revenue decreases, the improvements represent a dramatic turnaround.

Subway co-founder Peter Buck’s foundation declared that he will leave his 50 per cent ownership to the organisation after his death in November 2021, implying that the company will soon be half-owned by a charity. It’s unclear how this may affect a future sale.