One of the globe’s most well-known fast food chains is looking to sell for a hefty price tag.
On Wednesday AEDT (Tuesday local time), sandwich giant Subway revealed that it was considering selling the company.
In a note to shareholders, Subway wrote it was “exploring a possible sale”.
The food mega-chain revealed it had hired financial firm JP Morgan to help them through the process.
“The management team remains committed to the future and will continue to execute against its multi-year transformation journey, which includes a focus on menu innovation, modernisation of restaurants and improvements to its overall guest experience,” Subway said in the release.
The Wall Street Journal originally broke the news of a possible sale in January, which has now been confirmed by Subway.
At the time, the Journal reported it was valued at well over $10 billion (A$14 billion).
Subway has not officially announced any kind of price guide.
If the deal went ahead at the reported valuation, it would be one of the biggest fast food deals in history.
For some context, Inspire Brands bought Dunkin’ Donuts for US$11.3 billion (A$16.8 billion) in October 2020.
Subway has more than 37,000 restaurants in more than 100 countries.
The fast food outlet has around 1200 stores across Australia, including over 300 stores in the state of NSW, where it has its largest foothold in the country.
The foot-long sandwich seller has enjoyed large gains in the past few years against the backdrop of the Covid-19 pandemic.
Its global profits jumped by 9.2 per cent last year. A whopping 750 stores opened in 2022.
Subway’s sales rose by 7.8 per cent in its North American stores, exceeding projections by US$700 million (A$1 billion).
Subway is a 58-year-old company.
The brand was founded in Connecticut, the US, in 1965 and derived its name from the fact it was originally called “Pete’s Drive-In: Super Submarines”.
It was co-founded by Fred DeLuca, who was 17 at the time of the first restaurant’s launch, as well as his friend Peter Buck. Mr Buck lent DeLuca US$1000 to get started.
Mr Buck died in November 2021. He left half of the company to charity.
It is unclear if the fact Subway is 50 per cent owned by a charity will impede any sales deal.
Story Credit: news.com.au