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In a Tuesday assertion, Subway, one of many largest names in quick meals, confirmed shareholders are in search of to promote the chain. The 58-year-old firm has employed J.P. Morgan to supervise the method. The assertion didn’t disclose the deal’s value, however the Wall Road Journal reported final month that Subway might be valued at over $10 billion. A sale for that value might be one of the important acquisitions within the quick meals trade since Dunkin’ was bought to Encourage Manufacturers for $11.3 billion in 2020.
As CNN notes, Subway has seen a renewed recognition enhance thanks partly to menu enhancements, retailer renovations, and worldwide growth. Gross sales at its North American shops rose by 7.8% in 2022 and the chain noticed constructive digital progress with app and third-party service gross sales doubling over 2021. The corporate additionally expanded internationally, opening greater than 750 new eating places final 12 months, elevating international gross sales in particular person shops by 9.2%.
Subway’s announcement additionally comes a month after Entrepreneur speculated that the corporate was exploring a multibillion-dollar deal.
In its announcement, Subway mentioned there’s “no indication of timing or assurance {that a} sale will happen” and that it will not problem any extra public feedback till the method is accomplished. However, Subway’s announcement has important implications for the quick meals trade, and the sale might reshape the sector’s aggressive panorama.
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