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

By Steve Huff

entrepreneur daily
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

Related Topics

Growing a Business

How to Bridge the Gap Between Aspirations and Reality in Business

Bringing a vision to life requires a good dose of self-honesty and a multi-year plan for incremental progress.

Devices

Save on These Open-Ear Headphones — $30 This Week

Liberate your ears with these wireless, non-invasive headphones discounted for a limited time.

Growing a Business

3 Strategies to Help Leaders Ignite Passion in the Workplace (and Why It's Important)

Here are three proven strategies to help you motivate your team and bring passion into the workplace.

Fundraising

You Need to Do These 5 Steps If You Want to Survive the Difficult Funding Market

The VC market took a beating in 2023, and the VC funding market is not going to reopen anytime soon. This article will teach you how to survive a difficult funding market like today, so you can live to fight another day.

Business News

Report: The Majority of Recent College Grads End Up in Jobs That Don't Need Bachelor's Degrees

Two research companies looked at a dataset of 60 million Americans.