Subway is Considering Selling its Sandwich Chain

Subway, the world's largest sandwich chain, confirmed Tuesday that it is considering a possible sale of the company.

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It has been reported that the chain has advisors to explore a sale, and last month Trade Algo reported the company had advisors to investigate a sale. This was the first report that the chain had advisors to consider a sale.

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As part of the sale exploration process, Subway announced Tuesday that JP Morgan is advising the Connecticut-based firm. A timeline was not supplied by the company, and it cautioned that a sale might not be completed as a result of the process.

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“It is our firm belief that the management team is committed to the future and will continue to execute on the company's long-term transformation plans, including menu innovation, modernization of restaurants, and an effort to improve the overall customer experience,” the company stated in the release.

Recently, Subway announced its same-store sales rose 9.2% last year despite having over 37,000 restaurants worldwide. Subway said same-store sales in North America jumped 7.8% in 2022, beating decade-old average weekly sales records. Due to its private ownership, Subway is not required to disclose its financial results, but it has recently shared sales updates as it undergoes a turnaround.

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In a release earlier this month, the company said that it has reported eight consecutive quarters of sales growth, and this is the first time the company has done so. In the past year, the number of digital sales has more than tripled. Following years of sales declines, the improvements mark a stark turnaround following years of sales declines.

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There are also fewer Subway locations around the country: Over the period of 2015 to 2021, the number of Subway locations has dropped by 22%. In addition to remodeling 3,600 North American locations and improving franchisee profitability this year, Trade Algo previously reported that the company plans on doing so.

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In the wake of the death of Subway co-founder Peter Buck, whose foundation announced in November 2021 that he had left his 50% ownership share to the organization, Subway will soon be owned by a charity half of the time instead of a private company. In terms of a potential sale, it is unclear whether or not that will have an impact.