Subway Sold to Dunkin', Jimmie John's Owner for $9.6 Billion
Subway will be owned by the same company as Schlotzsky's, McAlister's Deli, and Jimmy John's.
Subway, the fan-favorite sandwich shop, has announced that they have been sold to investment firm Roark Capital, owner of multiple other restaurant brands including Dunkin' and Jimmie Johns. In a statement, the CEO of Subway John Chidsey said: "This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world. 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 Wall Street Journal reported that the sale of Subway to Roark Capital was "for about $9.6 billion."
According to a press release, "will continue to execute its strategy with a focus on sales growth, menu innovation, modernization of restaurants, overall guest experience improvements, and international expansion" after 10 consecutive quarters of of positive same store sales. Part of this growth by Subway comes as a result of their operations internationally. In addition to opening more Subway sandwich stores around the globe, they intend to open thousands of new Subways in China, a major increase in their presence there.
The addition of Subway into their portfolio marks a major acquisition for Roark Capital who own several notable brands, including other high profile restaurant brands including: The Cheesecake Factory; CKE Restaurants which includes Carl's Jr., Hardee's, Green Burrito & Red Burrito; Culver's; Focus Brands including Auntie Anne's, Cinnabon, and Moe's Southwest Grill; Inspire Brands which includes Arby's, Buffalo Wild Wings, Sonic Drive-In, and Dunkin'; and Jim 'N Nick's BBQ Restaurants.
Perhaps most interesting however is that with Roark Capital now acquiring Subway, they now know another notable sandwich shop brand with their others including Schlotzsky's, McAlister's Deli, and Jimmy John's. At this point, Jersey Mike's, Panera Bread, and Quiznos are some of the only major sandwich brands they don't have.
News of Roark Capital acquiring Subway comes just weeks after they had a major push by the chain that completely changed how they sell their sandwiches with each store now slicing all deli meat in-restaurant at every single location across the United States.