Milford-based Subway confirms it is considering potential sale
MILFORD — Subway announced Tuesday that it was exploring a potential sale, confirming reports last month that it was considering a deal.
In a news release, the Milford-based company did not explain why it was contemplating a sale and provided few details about the review process. The ownership of the privately held Milford-based company, which is known for offerings such as footlong sandwiches, now includes the foundation of its late co-founder, Peter Buck.
“There is no indication of timing or assurance that a sale will occur,” the news release said. “J.P. Morgan is advising the company and will conduct the sale exploration process. The company does not intend to make any further public comment regarding the process until it has been completed.”
The announcement of a potential sale was not a surprise given that The
Wall Street Journal reported last month that the company was evaluating such options. In a sale, Subway could be more valued at more than $10 billion, according to the Journal, which cited unnamed sources.
Such an asking price would constitute one of the largest-ever valuations for a fast-food company. Two years ago, Inspired Brands acquired the Massachusetts-based parent company of Dunkin’ and Baskin-Robbins for $11.3 billion. Inspire also owns sandwich chains Jimmy John’s as well as Arby’s, Buffalo Wild Wings and Sonic. In 2021, the parent company of Burger King and Popeye’s spent $1 billion to acquire Firehouse Subs.
Subway comprises one of the world’s largest fastfood providers, with nearly 37,000 restaurants, across more than 100 countries, that are owned and operated by franchisees.
The news release noted that the company had, “recently announced another record-setting year, ending 2022 exceeding global sales projections and achieving eight consecutive quarters of positive same-store sales growth.” Citing its status as a privately held company, Subway has declined to publicly disclose dollar amounts for its sales totals.
“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, modernization of restaurants and improvements to its overall guest experience,” the news release said.
In a sign of headwinds since the beginning of the COVID-19 pandemic, the company lost more than 1,000 U.S. locations in 2021, decreasing its total in the country at that point to about 21,150, according to The New York Post.
As it considers a prospective sale, Subway is also pursuing a significant project in its home state. Last June, it confirmed the planned relocation of its headquarters from Milford to Shelton.
The city of Milford reported the company’s contingent at its headquarters at 325 Sub Way, near Interstate 95’s Exit 35, totaled nearly 700 people in 2021. In the past few years, the company has laid off several hundred Milford-based employees.