Iconic sandwich chain Subway is up for sale, acccording to reports. The US multinational has been held private from inception but the families owning the group now are looking for buyera, the reports said.
It is estimated that the sale value would exceed $10 billion. Subway, which is based in Connecticut, is easily among the world's largest fast service restaurant brands. It has more than 37,000 restaurants around the world.
Process in Early Stages
Citing people familiar with the matter, the Wall Street Journal reported that the sale process is in its early stages. There is a possibility that the sale may not actually happen.
According to Reuters, similar reports about a potential sale had cropped up in 2021 as well. The restaurant chain had denied the reports at that time.
Subway did not comment on the development. "As a privately-held company, we don't comment on ownership structure and business plans. We continue to be focused on moving the brand forward with our transformational journey to help our franchisees be successful and profitable," the company said, according to the WSJ.
The quick-service food chain best known for 'submarine' sandwiches and wraps has been held privately for more than five decades.
Within the US alone, Subway, which was founded in 1965 by Fred DeLuca, has more than 21,000 outlets. According to IANS, one of the reasons for the sale could be the challenges that sprang from aggressive expansion over the years. With the emergence of a bevy of competitors, the sales figures have plateaued in recent years, the report said.
According to Neil Saunders, the managing director of GlobalData, one of the reasons why a sale could happen now is the recent expansion and the modernization program that Subway went through.
"While the program has proven itself, it still has a lot of runway to boost future growth, which makes Subway a chain with good prospects – even in a slowing economy ... The optimistic outlook is one of the reasons Subway sees this as a reasonable time to explore a sale and why it is likely to attract a significant amount of interest," he said in a note, according to CNN.