Subway sandwich chain up for sale at potential $10bn valuation

Sandwich chain Subway has about 37,000 franchise-run locations in more than 100 countries.

Subway reported a 9.2% increase in same-store sales for the year.

Subway, one of the world’s largest food chains, is exploring a possible sale in a deal that could value the international company at more than $10bn (€9.3bn). 

JPMorgan is advising Subway, which has about 37,000 franchise-run locations in more than 100 countries. It has said that 2022 was a “record-setting year” and it had posted eight consecutive quarters of positive same-store sales growth.

"The management team remains committed to the future and will continue to execute against its multiyear transformation journey,” Subway said in a statement.  

However, if a potential buyer such as a private equity firm wants to use debt to help finance a bid for Subway, they could have trouble finding financing. Subway is up against big chains that are investing heavily such as McDonald’s and Burger King. 

Subway said earlier this month that it plans to remodel 3,600 locations in North America this year.

The chain reported a 9.2% increase in same-store sales for the year. For comparison, McDonald’s posted 10.9% growth by that measure last year, while Starbucks's expansion was 6.8%. 

The company’s business model has been the subject of criticism in the US by its franchisees, who accuse it of opening new locations in close proximity to others.

Bloomberg