Sandwich chain Subway will be sold to fast-food investor Roark Capital

Subway, the sandwich chain, is being sold to the restaurant-focused private equity firm Roark Capital.

The big picture: Subway is planning to expand and upgrade its stores under its new owners.
* The terms of the deal were not disclosed, but it was reported that Roark offered around $9.6 billion.
* Subway’s leadership team is expected to remain in place following the acquisition.
* Roark Capital, valued at $37 billion, backs multiple restaurant chains, including Arby’s, Dunkin’, and Buffalo Wild Wings.

Background: Subway, founded in 1965, is now one of the world’s largest restaurant chains with over 37,000 outlets worldwide.
* However, Subway has been losing market share recently to growing rivalry from chains such as Panera and Firehouse Subs.
* Subway’s market share of the $43 billion U.S. sandwich and deli market has dropped from 34% in 2017 to 23% currently.

Recent changes and impact: Subway has been making changes, such as a menu refresh and a line of chef-developed sandwiches.
* Subway’s global same-store sales were up 9.8% from the prior year as of July.
* The company has also remodeled 10,000 of its U.S. restaurants and invested $80 million in supplying deli meat slicers to its 20,000 U.S. restaurants.

View original article on NPR

This summary was created by an AI system. The use of this summary is subject to our Terms of Service.

Contact us about this post

Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *