Sandwich chain Subway planning possible sale, hires JPMorgan as advisor: Report

Sandwich giant Subway informed on Tuesday that it is exploring a possible sale. Subway stated in a press release that JPMorgan is advising the Connecticut-based firm on the same and will hold the process of sale exploration. The company didn’t announce any timing and made it clear that the process may not not result in a sale. Subway said: “The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernization of restaurants and improvements to its overall guest experience.” As reported by The Wall Street Journal last month, a deal could value the chain at more than $10 billion. The exploration process is likely to attract potential corporate buyers and private-equity companies. Subway co-founder Peter Buck, who passed away in November 2021, announced that he left his 50 per cent ownership to a charity. It’s not clear if that is going to affect a potential sale. Subway had declined to comment on the potential sale. “As a privately held company, we don’t comment on ownership structure and business plans,” Subway said to the Wall Street Journal. “We continue to be focused on moving the brand forward with our transformational journey to help our franchisees be successful and profitable,” it added. Subway currently has more than 37,000 restaurants in over 100 countries. It had said earlier this month that its same-store sales grew 9.2 per cent last year. At the North American locations, the same-store sales rose 7.8 per cent in 2022. The fast-food restaurant company saw eight consecutive quarters of sales growth. As per a CNBC report, its digital sales have more than tripled since 2019, which is a sharp reversal after years of decline. Industry research firm Technomic told the Wall Street Journal that the chain’s global sales peaked at $18 billion in 2012, and then kept declining for years after that. The location count of the company fell 22 per cent from 2015 to 2021. Subway is planning to remodel 3,600 North American locations and improve franchise profitability this year, as reported by CNBC. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.