Sandwich chain Subway considers sale
In this photo illustration, a Subway sandwich is seen on a table at a Subway restaurant in Austin, Texas on January 12, 2023.
Brandon Bell | Getty Images
sandwich giant subway confirmed We are looking for a possible sale on Tuesday.
The deal could value the chain at more than $10 billion, according to last month’s article from wall street journalfirst reported that the company has hired advisors to consider a sale.
subway said Tuesday JP Morgan He advises a Connecticut-based company and conducts the sales research process. The company did not outline a timeline and warned that the process might not result in a sale.
“The management team remains focused on the future and will continue to execute a multi-year transformational journey that includes a focus on menu innovation, restaurant modernization and overall guest experience improvement,” Subway said. .
Subway, which has more than 37,000 restaurants in more than 100 countries, announced earlier this month that: Existing store sales increase Last year it was 9.2%. According to Subway, same-store sales at its North American stores will grow 7.8% in 2022, surpassing the average weekly sales record set a decade ago.
Subway isn’t required to disclose its financial results because it’s a privately held company, but we’ve shared an update on its recent sales as it continues its turnaround efforts.
The company reported eight consecutive quarters of sales growth in a release earlier this month. Digital sales have more than tripled since 2019. This improvement marks a significant reversal after years of declining sales.
Subway also operates with a smaller footprint. The company’s store count is down 22% from 2015 to 2021. He plans to refurbish 3,600 of his stores in North America this year, improving profitability for franchisees. CNBC previously reported.
The foundation of Subway co-founder Peter Buck, who passed away in November 2021, announced He left 50% ownership to the organization. That means it will soon be half-owned by a charity. It’s unclear if that will affect potential sales.
— CNBC’s Amelia Lucas Contributed to this report.
https://www.cnbc.com/2023/02/14/sandwich-chain-subway-explores-sale.html Sandwich chain Subway considers sale