Sandwich chain Subway seeks new owner

Sandwich chain Subway is looking for a new owner, the American retailer confirms now after a month of rumours.

10 billion dollars

The world’s second biggest chain (with 37,000 outlets worldwide) has revealed that its shareholders are exploring a possible sale, with the help of investment bank J.P. Morgan. While there is no “indication of timing or certainty that a sale will take place”, a figure is already circulating: the sale should raise more than ten billion dollars.

Insiders had already leaked the sale plans to the press a month ago, but at the time the company would not confirm the rumours – only responding that it had just completed another record year. Executives reiterated that 2022 exceeded global sales expectations and the chain has already achieved eight consecutive quarters of positive sales growth in its existing shops.

To be acquired by Burger King?

John Chidsey, former CEO of Burger King and the first CEO to not have come from the owning family, has set his company towards a multi-year transformation journey. The focus is on menu innovation, restaurant modernisation and experience improvement. However, Chidsey is best known for merging Burger King into the new holding company Restaurant Brands in 2014.

Exactly that Restaurant Brands is now also the most likely candidate to acquire Subway. There have been takeover talks between the two parties back in 2021, but then the shareholders – the heirs of the founders – failed to agree on the price. Today, Subway is one of the largest fast-food formats in the world, operating in some 100 countries. By comparison, McDonald’s had more than 40,000 restaurants in 2021.