Subway announces potential sale of the company.
The sandwich chain announced that it is going through a sale exploration process.
Subway, the privately owned sandwich chain based in Milford, Connecticut, has announced that it is considering a potential sale of the company. This comes after weeks of rumors about a possible deal, with a Wall Street Journal article last month suggesting that a sale could value Subway at over $10 billion. While there is no indication of timing or assurance that a deal will occur, Subway has confirmed that it is undergoing a sale exploration process. JP Morgan advises the company and will not comment until the process is completed.
Subway has 37,000 units globally but has culled several thousand stores from its portfolio in recent years. Despite this, the company recently announced another record-setting year, with global sales exceeding projections and eight consecutive quarters of positive same-store sales growth. Potential buyers for Subway could include Darden Restaurants Inc., although a quick-service sub-chain would be atypical for the Olive Garden parent.
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