Sandwich chain Subway announced today that it will be acquired by private equity firm Roark Capital. The terms of the deal were not disclosed. Reports suggest that Roark offered around US$9.6 billion for Subway, which is privately owned.
Subway CEO John Chidsey expressed his belief that this deal reflects Subway’s potential for long-term growth and the value of its brand. Under Roark’s ownership, Subway intends to continue modernizing its restaurants and expanding its international presence.
Roark Capital, a private equity firm with US$37 billion in assets under management, specializes in franchised businesses and already owns multiple restaurant chains, including Arby’s, Dunkin’, and Buffalo Wild Wings.
Subway, founded in 1965 and still owned by its founding families, is one of the world’s largest restaurant chains with over 37,000 outlets in more than 100 countries. With dual headquarters in Miami and Connecticut, Subway has faced market share loss in the U.S. to competitors like Panera and Firehouse Subs. In an effort to catch up, Subway refreshed its menu in 2021 and introduced a line of chef-developed sandwiches last year.
In February, Subway announced its intention to explore a sale. While it remains a major player in the global restaurant industry, Subway has faced challenges in the U.S. market, where it has been losing market share to competitors like Panera and Firehouse Subs. In an effort to regain relevance, Subway refreshed its menu in 2021 and introduced a line of chef-developed sandwiches last year.
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