Subway Exploring a Sale at $10+ Billion Valuation
- Subway sandwich giant confirmed Tuesday that it is investigating a possible sale.
- JPMorgan was hired by the company as an advisor during the sale exploration.
- Subway, which operates more than 37,000 restaurants across 100 countries, reported earlier this month that 9.2% of its same-store revenues grew last year.
Sandwich giant Subway confirmed Tuesday was the start of an exploration for a sale.
An article from last month stated that a deal could increase the value of the chain to more than $10Billion. The Wall Street JournalThe first report was that the company had employed advisors to look into a sale.
Subway stated Tuesday that JPMorgan It is providing advice to the Connecticut-based company, and will also conduct the sale exploration process. The company did not specify a timeframe and cautioned that the sale process might not go according to plan.
“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,” Subway was quoted in the release.
Subway has more than 37,000 restaurants across the globe.https://www.cnbc.com/2023/02/02/subway-sandwich-sales-climb-turnaround-sale-talks.html”>same-store sales climbed 9.2% in the last year. Subway stated that the same-store sales at North American stores increased 7.8% by 2022, exceeding the decade-old average weekly sales records.
Subway does not have to release its financial results because it is privately held. However, it has shared recent sales updates as part of a turnaround effort.
In a press release, the company stated that it has reported sales growth for eight quarters consecutively. Since 2019, digital sales have tripled. After years of declining sales, these improvements represent a significant turnaround.
Subway also operates in a smaller footprint. The company’s number of locations fell 22% between 2015 and 2021. Subway plans to renovate 3,600 locations in North America and increase franchisee profitability for this year. CNBC reported previously.
Peter Buck, co-founder of Subway, died in November 2021. Announcement His 50% ownership was transferred to the charity, which will make it half-owned by a charity. It is not clear if this will affect a sale.
— CNBC’s Amelia Lucas This report was contributed by you.
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