Subway Sold to Owner of Dunkin’, Jimmy John’s and Arby’s

Subway, the world’s biggest sandwich franchise, has announced its acquisition by Roark Capital in a deal valued at approximately $9.6 billion. This monumental transaction marks one of the largest in the restaurant industry, following closely behind Inspire Brands' $11.3 billion purchase of Dunkin' and Baskin-Robbins. Roark Capital, no stranger to the restaurant business, already boasts an impressive portfolio including Inspire Brands, Focus Brands and CKE Restaurants. 

“This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world,” Subway CEO John Chidsey said in a statement. “Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees.” 

The acquisition comes after a period of significant transformation for Subway. Over the past few years, the company has embarked on a comprehensive turnaround strategy. This included menu overhauls, with the introduction of over 20 upgrades in 2021 alone, and the launch of the Subway Series and Deli Heroes collection. 

Additionally, Subway has been proactive in expanding its global footprint, signing 15 master franchise agreements expected to usher in over 9,000 new stores across Europe, the Middle East, Africa and Asia Pacific. Domestically, the brand has revamped 10,000 U.S. outlets with its "Fresh Forward" design and aims to increase North American store openings by 35% in 2023.

Subway's leadership has also seen significant changes. Trevor Haynes, the long-standing president of North America, will be departing by the end of 2023, with Douglas Fry taking over. Other notable shifts include Carrie Walsh's appointment as president for Europe, Middle East and Africa, and Mike Keoe's new role as the global chief development officer.

Financially, Subway has been on an upward trajectory. In the second quarter, the chain set multiple records, including its highest Northern American Average Unit Volume (AUV) for three consecutive months. Global comparable sales rose by 9.8% year-over-year in the first half of 2023, marking the brand's 10th consecutive quarter of positive growth.

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