Sandwich chain Subway has retained advisers to explore a sale of the closely held company, according to people familiar with the situation. The process, which is in the early stages, is expected to attract potential corporate buyers and private-equity firms, and could value Subway at more than $10 billion, the people said. Still, it is possible there won’t be a sale or other deal.
“As a privately held company, we don’t comment on ownership structure and business plans,” Subway said. “We continue to be focused on moving the brand forward with our transformational journey to help our franchisees be successful and profitable.” Milford, Conn.-based Subway, known for its foot-long sandwiches and quick-service restaurants, has been owned by its two founding families for more than five decades. Subway’s approximately 21,000 U.S. locations did $9.4 billion in sales in 2021, up 13% from the year prior as the chain recovered from the pandemic and operational improvements boosted sales, according to industry research firm Technomic. The company had around 37,000 stores around the world as of 2021 and was the biggest restaurant chain by U.S. locations. An expanded version of this report appears on WSJ.com. Also popular on WSJ.com: Mouse jigglers, fake PowerPoints: Workers foil bosses’ surveillance attempts. Nelson Peltz plans proxy fight against Disney.
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