An employee halves a Subway sandwich at a Subway restaurant in Austin, Texas on January 12, 2023.
Brandon Bell | Getty Images
Subway said same-store sales were up 9.2% in 2022, signaling a turnaround for the sandwich chain it’s reportedly considering selling.
As the company is privately held, it is not required to disclose financial results. However, Subway recently shared a regular sales update. turnaroundThese announcements could push potential buyers forward.
wall street journal reported in January that Subway had hired advisors to consider a sale that could value the chain at more than $10 billion. In a statement to CNBC, Subway said that because it is a privately held company, it does not comment on its ownership structure or business plans.
Chief Executive John Chissy said in a statement Thursday that the chain is “on its way back to its former glory” after two years of record sales. Sales grew, and digital sales have more than tripled since 2019, the company said in a release. According to Subway, same-store sales at the company’s North American base will grow 7.8% in 2022, breaking the average weekly sales record set a decade ago.
The trend is reversing years of declining sales for the once ubiquitous sandwich chains. The company was once the largest restaurant company in the United States by number of stores. In 2021, he will have 21,147 stores in the U.S., according to franchise disclosure documents, a 22% decline from his 2015 peak of 27,103 stores.
Even before the death of co-founder Fred DeLuca and the high-profile trial of former spokesman Jared Fogle, both in 2015, Subway struggled to keep up with new fast-casual competitors such as Did. chipotle pepper They ripped off their own sales by opening too many locations. As sales plummeted, ugly feuds with franchisees unfolded in court and splashed in the headlines.
Chidsey took over the helm in late 2019, becoming Subway’s first permanent leader unrelated to its founders. In the summer of 2021, the chain announced it was revising its menu, upgrading ingredients and increasing advertising spend to keep customers coming back.
A comeback attempt Harsh environment For the wider restaurant industry.After the pandemic lockdown was lifted, restaurants address the shortage of motivated worker, supply chain swells, rising raw material costs. Many have raised their prices accordingly.
Subway didn’t disclose the amount on Thursday. price increase It’s contributed to recent sales growth, but he told CNBC that the price increases “match” those of other fast-food chains.
Subway plans to improve franchisee profitability and refurbish 3,600 stores in North America toward 2023. Outside the home market, the company has committed to open 5,300 new stores from master franchisees..
The company will also soon be half-owned by a charity — Subway co-founder Peter Buck’s Foundation announcement He left 50% ownership of the sandwich chain to the organization.
It’s unclear if that will affect potential sales.