After nearly 60 years of family control, the multinational sandwich giant Subway has announced that it is considering a possible sale of the company.
The company has been expanding quickly for years but is currently dealing with challenging rising prices and greater competition.
According to the Wall Street Journal, which broke the story, a sale of the company might fetch more than $10 billion ($8.2 billion) in value.
J.P. Morgan, a leading name in financial services, is assisting Subway with the possible sale.
When asked how long the procedure might take, Subway stated that it does not intend to provide any more information until it is finished.
The business reported record sales for the second year in a row earlier this month. According to Subway, same-store sales increased by 9.2% in 2018 over 2021.
The company continued by saying that it would “maintain to deliver against its multiyear transformation journey,” which includes adding new menu items and updating its venues.
In Bridgeport, Connecticut, Subway was first established in 1965 as Pete’s Super Submarines by 17-year-old Fred DeLuca and a friend of the family named Peter Buck.
It underwent a number of renaming attempts before being given the Subway moniker in 1972.
They started franchising the business after opening 16 sandwich shops in their home state in less than two years. It currently operates approximately 37,000 stores in more than 100 nations.
Franchisees, which number in the hundreds of small company owners and innovators, own and run Subway locations.
Companies all throughout the world have experienced higher expenses recently for everything from groceries to fuel.
McDonald’s, a fast food competitor of Subway, raised the price of its cheeseburger in the UK in July for the very first time in much more than 14 years.
The corporation announced that some items would be increased by between 10 and 20 percent at its UK outlets.
In an email to consumers, McDonald’s UK and Ireland’s chief executive stated that the company was forced to make “difficult decisions” over its pricing.