Current:Home > reviewsSandwich chain Subway will be sold to fast-food investor Roark Capital -StockSource
Sandwich chain Subway will be sold to fast-food investor Roark Capital
View
Date:2025-04-24 19:06:01
Subway said Thursday it will be sold to Roark Capital, a private equity firm with expertise in restaurant management that could help the sandwich chain expand and improve its stores.
Terms of the deal weren't disclosed. Earlier this week, The Wall Street Journal reported that Atlanta-based Roark was offering around $9.6 billion for Subway, which is privately owned.
Subway CEO John Chidsey, who joined the company in 2019, said the deal reflects Subway's long-term growth potential and the value of the brand. Subway plans to continue to modernize restaurants and expand internationally under Roark's ownership. Subway said its leadership team will remain in place.
Roark is a private equity firm with $37 billion in assets under management. It specializes in franchised businesses and backs two holding companies that own multiple restaurant chains: Inspire Brands, the parent of Arby's, Dunkin', Jimmy John's and Buffalo Wild Wings; and Focus Brands, which owns Auntie Anne's, Carvel, Cinnabon and Jamba.
Subway, which has dual headquarters in Miami and Connecticut, was founded in 1965 and is still owned by its founding families. It's now one of the world's largest restaurant chains, with 37,000 outlets in more than 100 countries.
But in the U.S., it has been losing market share in recent years to fast-growing rivals like Panera and Firehouse Subs, which feature more varied menus and newer stores. Subway currently controls about 23% of the $43 billion U.S. sandwich and deli market, according to Technomic, a consulting company. That's down from 34% in 2017.
Subway has been trying to catch up; in 2021 it refreshed its menu and last year it announced a line of chef-developed sandwiches after finding that customers were tiring of Subway's traditional model of letting customers build their own sandwiches.
But in February, Subway announced it was exploring a sale.
Subway has some momentum going into the acquisition. In July, the company said its global same-store sales __ or sales at locations open at least a year __ were up 9.8% from the prior year. The company has remodeled 10,000 of its U.S. restaurants and recently spent $80 million to provide its 20,000 U.S. restaurants with deli meat slicers, a first for the brand.
veryGood! (2)
Related
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- Chris Kaba shooting case drives London police to consider army backup as officers hand in gun licenses
- Police charge man in deadly Georgia wreck, saying drivers were racing at more than 100 mph
- Michigan judges ordered to honor pronouns of parties in court
- Sarah J. Maas books explained: How to read 'ACOTAR,' 'Throne of Glass' in order.
- House advances GOP-backed spending bills, but threat of government shutdown remains
- An invasive catfish predator is eating its way into another Georgia river, wildlife officials warn
- Plans for Poland’s first nuclear power plant move ahead as US and Polish officials sign an agreement
- Trump invites nearly all federal workers to quit now, get paid through September
- How Landon Barker Really Feels About Dad Travis Barker and Kourtney Kardashian Expecting a Baby Boy
Ranking
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- Brewers clinch NL Central title thanks to Cubs' meltdown vs. Braves
- Wael Hana, co-defendant in Robert Menendez case, arrested at JFK
- The movement to end hunger is underway. We support families battling food insecurity.
- Realtor group picks top 10 housing hot spots for 2025: Did your city make the list?
- Ariana Madix Reflects on “Devastating” Tom Sandoval Scandal During DWTS Debut
- Demi Moore Shakes Off a Nip Slip Like a Pro During Paris Fashion Week
- 'Leave the dog': Police engage in slow-speed chase with man in golf cart to return stolen pet
Recommendation
Bodycam footage shows high
British Museum seeks public help in finding stolen artefacts
Ukraine war effort aided by arrival of U.S. tanks as doubts raised over killing of Russian fleet commander
Brooks Robinson Appreciation: In Maryland in the 1960s, nobody was like No. 5
Elon Musk's skyrocketing net worth: He's the first person with over $400 billion
USDA expands access to free school breakfast and lunch for more students
Apple leverages idea of switching to Bing to pry more money out of Google, Microsoft exec says
US suspends aid to Gabon after military takeover