Subway, the world-renowned sandwich chain, has announced it is exploring the possibility of selling the business. The Wall Street Journal reported in January that the privately-held company had tapped advisors to investigate the potential sale. According to people familiar with the matter, the transaction could be worth over $10 billion.
Subway, founded in 1965 by Fred DeLuca and Dr. Peter Buck, has since grown to 37,000 locations in over 100 countries, including 20,000 in America and 20,000 franchisees. Despite the closure of over 1,000 stores last year, the company reported in February a year-over-year same-store sales jump of 9% in 2022, including an 8% increase in North America.
The company has implemented a multi-year transformation strategy and is rolling out 12 new options as part of its “Subway Series” menu. It is also trialing a sandwich vending machine at the University of California, San Diego and plans for 3,600 stores in North America to undergo renovations. Additionally, Subway is said to be phasing out pre-sliced deli meats.
J.P. Morgan is advising the company and will conduct the sale exploration process. Subway stated in its press release they have no indication of timing or assurance that a sale will occur, and they do not intend to make any further public comment until the process has been completed.