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The Subway emblem is seen on takeout containers at a restaurant in Londonderry, N.H. The sandwich chain says it will likely be offered to the non-public fairness agency Roark Capital. Phrases of the deal weren’t disclosed.
Charles Krupa/AP
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Charles Krupa/AP
The Subway emblem is seen on takeout containers at a restaurant in Londonderry, N.H. The sandwich chain says it will likely be offered to the non-public fairness agency Roark Capital. Phrases of the deal weren’t disclosed.
Charles Krupa/AP
Subway mentioned Thursday it will likely be offered to Roark Capital, a personal fairness agency with experience in restaurant administration that might assist the sandwich chain develop and enhance its shops.
Phrases of the deal weren’t disclosed. Earlier this week, The Wall Road Journal reported that Atlanta-based Roark was providing round $9.6 billion for Subway, which is privately owned.
Subway CEO John Chidsey, who joined the corporate in 2019, mentioned the deal displays Subway’s long-term progress potential and the worth of the model. Subway plans to proceed to modernize eating places and develop internationally underneath Roark’s possession. Subway mentioned its management group will stay in place.
Roark is a personal fairness agency with $37 billion in property underneath administration. It makes a speciality of franchised companies and backs two holding corporations that personal a number of restaurant chains: Encourage Manufacturers, the dad or mum of Arby’s, Dunkin’, Jimmy John’s and Buffalo Wild Wings; and Focus Manufacturers, which owns Auntie Anne’s, Carvel, Cinnabon and Jamba.
Subway, which has twin headquarters in Miami and Connecticut, was based in 1965 and continues to be owned by its founding households. It is now one of many world’s largest restaurant chains, with 37,000 retailers in additional than 100 international locations.
However within the U.S., it has been dropping market share lately to fast-growing rivals like Panera and Firehouse Subs, which characteristic extra different menus and newer shops. Subway at present controls about 23% of the $43 billion U.S. sandwich and deli market, in accordance with Technomic, a consulting firm. That is down from 34% in 2017.
Subway has been attempting to catch up; in 2021 it refreshed its menu and final 12 months it introduced a line of chef-developed sandwiches after discovering that prospects have been tiring of Subway’s conventional mannequin of letting prospects construct their very own sandwiches.
However in February, Subway introduced it was exploring a sale.
Subway has some momentum going into the acquisition. In July, the corporate mentioned its international same-store gross sales __ or gross sales at areas open no less than a 12 months __ have been up 9.8% from the prior 12 months. The corporate has transformed 10,000 of its U.S. eating places and just lately spent $80 million to supply its 20,000 U.S. eating places with deli meat slicers, a primary for the model.
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