Subway Announces Completion of Sale to Roark Capital
Subway, the global sandwich chain, has officially been acquired by affiliates of Roark Capital, marking the end of a lengthy and complex sale process, the company announced on Tuesday. The acquisition follows three years of impressive sales growth and positive global net restaurant growth for Subway, a first since 2016.
Despite the change in ownership, Subway’s CEO, John Chidsey, assures that the company’s leadership team, strategic focus, and operating plans will remain unchanged.
The sale process, which began early last year following the death of Subway’s cofounder Peter Buck in 2021, was prolonged due to regulatory concerns raised by the US Federal Trade Commission regarding Roark’s level of ownership in the restaurant industry. However, these concerns have been addressed, allowing the $9.6 billion deal, which reportedly includes an earn-out provision, to move forward.
Subway has faced challenges in recent years, closing over 7,000 restaurants as low-volume operators struggled with rising costs. Despite this, the company has implemented numerous changes to its business structure and menu, resulting in an all-time high average unit volume of $490,000 per US location in 2023.
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As Subway embarks on this new chapter, Chidsey emphasizes the company’s commitment to delivering better food and guest experiences, as well as its focus on culinary and digital innovation, restaurant modernization, and strategic international expansion.
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