Subway is set to be sold to Roark Capital for more than $9 billion

Subway is set to be sold to Roark Capital for more than $9 billion

Roark owns Inspire Brands — which includes Arby’s, Baskin Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and Sonic — as well as Focus Brands, which includes Auntie Anne's Pretzels and Jamba Juice.

This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," said Subway CEO John Chidsey, who joined in 2019 after serving as CEO and Chairman of Burger King. "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.

If the acquisition goes through at the reported $9.6 billion price, it would the third biggest restaurant deal ever after Restaurant Brands (QSR) buying out Tim Hortons for $11.4 billion in 2014 and Inspire Brands (also owned by Roark Capital) buying Dunkin' in 2020 for $11.3B.

It would also mean that Roark Capital played a part in three out of 10 out the biggest restaurant deals in the past decade.

In the first half of 2023 Subway, global same-store sales increased 9.8%, while digital sales jumped 11.1% compared to the year prior.

In North America, same-store sales increased 9.3% from a year ago with its top 75% of locations, roughly 17,000, up 14.5%, and its top 50% of locations, about 11,500 sandwich shops, up 19.8%. Digital sales in North America jumped 17.8%.

In 2022, Subway opened nearly 750 restaurants and 145 new restaurants in the first quarter of 2023. In total, there are nearly 37,000 restaurants in 100 countries.

Subway was founded in 1965 when a nuclear physicist Dr. Pete Buck loaned then-college freshman Fred DeLuca $1,000 to help him open a sandwich shop. Until this deal, the company was family owned.