Get All Access for $5/mo

Fast Food Icon Subway Looks for New Ownership This announcement has big implications for the future of the fast food industry.

By Steve Huff

Brandon Bell | Getty Images

In a Tuesday statement, Subway, one of the biggest names in fast food, confirmed shareholders are seeking to sell the chain. The 58-year-old company has hired J.P. Morgan to oversee the process. The statement did not disclose the deal's price, but the Wall Street Journal reported last month that Subway could be valued at over $10 billion. A sale for that price could be one of the most significant acquisitions in the fast food industry since Dunkin' was sold to Inspire Brands for $11.3 billion in 2020.

As CNN notes, Subway has seen a renewed popularity boost thanks partly to menu improvements, store renovations, and international expansion. Sales at its North American stores rose by 7.8% in 2022 and the chain saw positive digital growth with app and third-party service sales doubling over 2021. The company also expanded internationally, opening more than 750 new restaurants last year, raising global sales in individual stores by 9.2%.

Subway's announcement also comes a month after Entrepreneur speculated that the company was exploring a multibillion-dollar deal.

In its announcement, Subway said there's "no indication of timing or assurance that a sale will occur" and that it won't issue any additional public comments until the process is completed. Nevertheless, Subway's announcement has significant implications for the fast food industry, and the sale could reshape the sector's competitive landscape.

Steve Huff

Entrepreneur Staff

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Solutions

Increase Productivity with This Microsoft 365 Subscription, Now $25 Off

It can make the entrepreneur life a lot easier.

Business News

Apple Pay Later Is Ending. Here's What's Taking Its Place.

The program was available for less than a year.

Leadership

This Artist Answered a Businessman's 'Powerful' Question — Then His Work Became 'the Poster Child for Juneteenth': 'Your Network Really Becomes Your Net Worth'

Reginald Adams was the executive director of a Houston-based art museum for more than a decade before he decided to launch his own public art and design firm.

Leadership

Harvard Business School Professor Says 65% of Startups Fail for One Reason. Here's How to Avoid It.

Team alignment isn't nice to have -- it's critical for running a successful business.

Business News

Here's What Companies Are Open and Closed on Juneteenth 2024

Since it became a holiday in 2021, Juneteenth has been recognized by some major corporations as a paid day off.

Growing a Business

I Hit $100 Million in Annual Revenue by Being More Transparent — Here Are the 3 Strategies That Helped Me Succeed

Three road-tested ways to be more transparent and build relationships that can transform your business — without leaving you feeling nightmarishly over-exposed.