Subway Sales Boosted To 12.1% In First Quarter; Sandwich Chain Seeks Buyer
Sandwich brand Subway reported double-digit growth in same-store sales in the first quarter, demonstrating that its recovery is taking effect as the firm looks to sell itself.
Subway Sales Post Double-Digit Quarterly Growth
In a CNBC report, Subway confirmed in February that JPMorgan was hired just to advise about any potential Subway sales. The Wall Street Journal, reported the privately owned company was exploring a sale that could value it at up to $10 billion, and the transaction is going into its second round. John Chidsey, CEO of Subway, told Restaurant Business Online that the agreement is anticipated to be completed by the end of May or early June.
With Subway sales improved, its performance can help achieve the valuation. Globally, Subway sales with same-store have reached 12.1 percent, and its digital-only promotions have increased by 11.4 percent.
Although the subway company is not permitted to disclose any financial results because it’s privately owned, however, Subway has recently shared periodic sales updates as it has launched a turnaround.
About Subway
The foundation of Subway co-founder Peter Buck stated earlier this year that he passed on 50% ownership to the group. The company’s other half is owned by Fred DeLuca’s family.
Subway’s resurgence has also involved switching franchisees from single-unit owners to multi-unit operators. Subway gave five multi-unit franchisees 230 outlets on April 17.
Subway has over 37,000 stores across 100 countries. Over the past decade, its U.S. footprint has diminished. Franchisee revenues were squeezed by its $5-footlong sandwich bargain and aggressive development. In 2015, Jared Fogle’s trial and DeLuca’s death harmed the chain.
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