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Sandwich, a massive fast food chain, is apparently looking at a possible sale that might fetch more than $10 billion.
According to people familiar with the matter, the privately held sandwich producer is still in the early phases of the process and has hired advisers to help with a potential sale.
According to the article, Subway could yet opt against selling the business.
Subway issued a statement saying, “As a privately held company, we don’t comment on ownership structure and business intentions. “We are committed to advancing the brand through our transformational path in order to support our franchisees’ success and profitability.”
The sale discussions started at a difficult time for Subway, which last year announced a new menu in an effort to boost declining sales. In order to increase store traffic, the Connecticut-based firm has mainly relied on its celebrity endorsement deals with people like NFL legend Tom Brady, Yankee great Derek Jeter, and NBA phenom Stephen Curry.
With 21,147 US store locations as of the end of 2021, Subway ranks as the largest restaurant chain, albeit its advantage has dwindled recently. The company operates at about 37,000 sites worldwide.
The corporation shut down 1,043 more stores in the US than it established in 2021, The Post reported in April of last year. According to sources, CEO of Subway John Chidsey retaliated against franchisees by mandating that they operate for 13 hours per day, seven days a week.
Data from research firm Technomic was cited by The Journal as showing a 13% increase in US shops’ revenue to $9.4 billion in that year. When compared to the same period last year, Subway’s same-store sales in the third quarter increased by 8.4%, the company reported in October.
Some detractors have disputed Subway’s claims of increasing sales, contending the figures are higher because of price inflation.
What do you think of that possible Subway sell? Please let us know in the comments.