Sandwich is apparently contemplating a potential sale that may result in a valuation of above $10 billion.
People familiar with the subject told the Wall Street Journal on Wednesday that the privately-held sandwich maker is in the first phases of the process and has hired advisers to assist with a prospective purchase.
According to the article, Subway might yet opt not to sell the company.
Subway replied in a statement, “As a privately held company, we do not comment on our ownership structure or business plans.” “We remain committed to advancing the brand through our transformational journey in order to help our franchisees become successful and profitable.”
The sale talks occurred during a period of transition for Subway, which redesigned its menu last year in an effort to boost its flagging sales. The Connecticut-based retailer has relied largely on celebrity collaborations with the likes of Tom Brady, Derek Jeter, and Stephen Curry to promote store traffic.
Subway was the largest restaurant chain in the United States with 21,147 outlets by the end of 2021, however its lead has diminished in recent years. The corporation has roughly 37,000 outlets worldwide.
As reported by The Post in April of 2018, the firm closed 1,043 more locations in the United States than it opened in 2021. According to sources, Subway CEO John Chidsey required franchisees to be open seven days a week and 13 hours a day.
Prior to 2021, sales rumors occurred, but Subway refuted it.
According to data from research firm Technomic quoted by The Journal, retail sales in the United States rose 13% to $9.4 billion that year. In October, Subway reported that its same-store sales for the third quarter increased 8.4% compared to the same period last year.
Some detractors have refuted Subway’s claims of increased sales, suggesting that the increase is due to price inflation.