Subway reportedly close to being sold to Arby's owner

Sandwich chain Subway is reportedly nearing a deal to sell to Roark Capital, the parent company of Arby's, after months of negotiations with various private equity firms. According to the Wall Street Journal, Roark has emerged as the frontrunner with an offer worth approximately $9.6 billion. The deal could be finalized as early as this week.

Roark Capital already owns several restaurant brands, including Buffalo Wild Wings, Culver's, and Jimmy John's. However, the company has not yet responded to requests for comment on the potential acquisition of Subway.

In response to the report, Subway released a statement to Reuters stating that they would not be making any further public comments until the transaction is completed.

Subway, founded in 1965, has been owned by the families of its founders, Fred DeLuca and Peter Buck, since its inception. However, in February, the sandwich chain announced its intention to pursue a sale. With over 37,000 restaurants across more than 100 countries, Subway is a global brand.

In recent years, Subway has made efforts to revamp its operations, including a menu overhaul and marketing campaign. These changes were implemented to address concerns such as outdated decor and the impact of $5 foot-long sandwich deals on franchisee profits. The turnaround plan has resulted in increased sales for the chain.

JPMorgan Chase & Co. is serving as Subway's financial adviser and has been overseeing the sale process. Earlier this year, it was reported that JPMorgan was aiming to structure a deal valuing Subway at over $10 billion.

It remains to be seen how this potential acquisition by Roark Capital will impact Subway's future operations and brand identity. As the deal progresses, further details are expected to emerge.


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