Subway, the international fast food restaurant franchise headquartered in Connecticut, announced on Tuesday that it is considering the option of selling the sandwich company.
Subway which was co-founded by Fred DeLuca and Peter Buck in 1965 as Pete’s Super Submarines is currently one of the largest fast food restaurant chains in the world with more than 21000 outlets across 100 countries. According to reports, more than 410 000 employees work under various divisions of the company owned by the DeLuca family.
Subway has stated on its website that there is currently no set timeline for a potential sale, and there is no guarantee that a sale will ultimately be executed. The company has enlisted the services of J.P. Morgan to advise them on the exploration of a possible sale.
A few weeks ago Wall Street Journal reported that Subway might be planning to sell the business.
The fast-food restaurant chain has gone through several ups and downs over the past few years when it was forced to shut down stores and still managed to post growth in sales during quarters. No one is sure regarding what is the exact reason for the management’s latest decision to explore the possibilities of a sale.
It is important to note that Subway is a privately owned company and there is not obliged by the laws to make its quarterly financial results public.
Subway which remained a market leader in the fast food sector for more than a decade has been losing business to newer franchisees and restaurant chains. The newer restaurant chains that entered the market with updated menus and newer offerings attracted young customers.
To overcome the crisis, Subway decided to modernize its stores Subway unveiled its Eat Fresh Refresh initiative in 2021, which involved making menu adjustments and enhancing the online ordering process. Concurrently, the company pledged to focus on expanding its presence solely in international markets, excluding the United States.
Despite the potential sale, Subway has affirmed its commitment to pursuing the ongoing enhancements outlined in its multi-year transformation plan. According to the Wall Street Journal, Subway could fetch a price tag upwards of $10 billion should it find a purchaser. This would mark the biggest acquisition in the restaurant industry since Inspire Brands’ acquisition of Dunkin’ in 2020 for $11.3 billion, as reported by Nation’s Restaurant News.
