An employee halves a Subway sandwich at a Subway restaurant on January 12, 2023 in Austin, Texas.
Brandon Bell | Getty Images
Subway said its same-store sales climbed 9.2% in 2022, a sign that the sandwich chain’s turnaround is accelerating as it reportedly examines sales.
The company is not required to disclose its financial results as it is privately owned. However, Subway has recently shared periodic sales updates as it has a change, Those announcements may entice potential buyers to move in.
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wall street journal It was reported in January that Subway hired consultants to explore a sale that could value the chain at more than $10 billion. In a statement to CNBC, Subway said it does not comment on ownership structure and business plans because it is a privately held company.
CEO John Chidsey said in a statement Thursday that the chain has had two years of record sales and is “regaining its swagger.” Subway has seen eight consecutive quarters of sales growth, and digital sales have more than tripled since 2019, the company said in a release. According to Subway, same-store sales of its North American locations are set to grow 7.8% in 2022, breaking the decade-old average weekly sales record.
The trend reverses years of declining sales for the once-ubiquitous sandwich chain, which at one point was the largest US restaurant company by number of locations. Its US footprint is slated to drop to 21,147 outlets in 2021, down 22% from its peak of 27,103 in 2015, according to franchise disclosure documents.
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Even before the death of co-founder Fred DeLuca in 2015 and the high-profile trial of former spokesman Jared Fogle, Subway had seen new fast-casual competitors such as chipotle And ended up selling their own by opening too many locations. As sales plummeted, ugly feuds with franchisees played out in the courts and dominated headlines.
Chidse took the reins in late 2019, becoming Subway’s first permanent leader not related to a founder. In the summer of 2021, the chain announced it was overhauling its menu, upgrading its ingredients and increasing advertising spending to entice customers back.
its return attempt coincides with a tough environment to the wider restaurant industry. After the lifting of the lockdown caused by the pandemic, eateries have had to face shortage of willing worker, supply chain snarls and material costs climbing. Many have raised prices in response.
Subway didn’t disclose how much Thursday price hike has contributed to its recent sales growth, but told CNBC that its price increases are “in line” with other fast-food chains.
Looking to 2023, Subway plans to improve franchise profitability and remodel 3,600 North American locations. Outside its home market, the company has commitments from master franchisees to open 5,300 new locations,
On Tuesday, Subway co-founder Peter Buck will also own half of the company, a charity Foundation announced that he gave up his 50% ownership of the sandwich chain to the organization. Buck died in November 2021.
It is unclear whether this will have an impact on potential sales.