new york
CNN
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The Wall Street Journal reports that Subway, one of the world’s most popular fast food brands, may be up for sale.
The privately held company has tapped advisers to explore a possible sale of Subway for more than $10 billion, the Wall Street Journal reported. If achieved, it would be one of the largest deals in the fast food industry since Inspire Brands bought Dunkin’ for $11.3 billion in October 2020.
Subway said in a statement to CNN that it “does not comment on ownership structure and business plans” because it is private. “We are focused on moving the brand forward in our transformational journey to help our franchisees be successful and profitable,” added the spokesperson.
Subway is still in the early stages of putting up a “for sale” sign and may not get a deal approved, the Journal reported.
Subway is updating itself, including revamping its menu and stores. The renovation, one of the largest in its nearly 60-year history, appears to be paying off. The company said it is experiencing “record-setting sales” at its 20,000 U.S. locations in October 2022, boosted by a slew of changes that include new sandwiches, soups and revamped stores.
Subway attributes its recent success to its new “Subway Series” menu, streamlined and digital ordering to help speed up service.
Those changes make Subway an attractive target for buyers, GlobalData managing director Neil Sanders said in a note late Wednesday.
“While the program has proven itself, it still has a lot of runway for future growth, which makes the subway a chain with good prospects – even in a slow economy,” he wrote. “Optimism is one of the reasons Subway sees it as a logical time to explore this sale and why it could attract a significant amount of interest.”
Subway was founded in 1965 by the late Fred DeLuca. Following a leukemia diagnosis in 2015, he handed over control to his sister. After her short tenure, Subway named John Chidsey as its first non-family CEO and made a number of changes, including closing locations and changing food.
Despite the positive changes in recent years, Saunders said a new buyer “could make changes that improve sales and profitability,” including strengthening the number of franchisees and further expanding its global footprint.
“While Subway is clearly interested in making a deal, it’s not particularly in a hurry and can relax if nothing comes along. That means shoppers will have to pay full price to get any transaction online,” Saunders said.
