Subway, one of the world’s most recognizable fast food brands, has confirmed it’s up for sale.
The 58-year-old company said in a statement Tuesday that its shareholders are “exploring a possible sale” of the company and that it has hired J.P. Morgan to help conduct the process. Subway warned that there’s “no indication of timing or assurance that a sale will occur” and it doesn’t intend to make any further public comments until the process is finished.
The announcement comes a month after the Wall Street Journal broke the news that the 58-year-old chain was exploring a sale. A price tag wasn’t announced in Subway’s statement, but the newspaper said Subway could be valued at more than $10 billion.
If reached, it would be one of the biggest deals in the fast food industry since Inspire Brands bought Dunkin’ for $11.3 billion in October 2020.
Bolstered by a revamped menu, store renovations and international growth, Subway has been on the rebound in recent years. The privately held company recently said that sales at its North America stores open at least a year rose 7.8% last year compared to 2021, which Subway said exceeded its projections by more than $700 million (it didn’t reveal specific numbers).
Digital growth was also a highlight for the company, with sales made through its app or third-party services doubling compared to 2021. Its international footprint also grew with more than 750 restaurants opening last year, helping its global same-store sales grow 9.2% year over year.
This year, new meat slicers will roll out at all of its stores — a sharp reversal from its previous method of shipping locations pre-sliced meat.
“We were one of the few, if only, sub shop that didn’t slice in restaurant. Not only does it give the guest a better perception of seeing the nice, fluffy meat, but we save a lot of money since we were paying a lot of money to have it sliced upstream,” Subway CEO John Chidsey previously told CNN.
The cost savings will be reinvested into the upcoming menu changes, scheduled to debut this summer.
