Subway® Double-Digit Global Sales Growth Continues the Upward Trend

Subway, a sandwich chain, announced double-digit same-store sales growth for the first quarter, demonstrating the success of its turnaround as the company looks to go public.

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Subway acknowledged in February that JPMorgan had been retained to provide advice on a potential sale. Trade Algo reports that the restaurant company is apparently seeking a valuation of at least $10 billion as the auction enters its second round. According to Subway CEO John Chidsey, a deal should be finalized by the end of May or the beginning of June.

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The company might reach that valuation as a result of its better performance. Although price increases and comparisons to the Covid omicron outbreaks from the previous year probably helped raise sales, Subway claimed to have seen an increase in traffic in the first quarter.

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Globally, Subway saw a 12.1% increase in same-store sales and an 11.4% increase in internet sales.  Same-store sales in North America increased by 11.7%, while internet sales increased by 21.2%.

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Due to its ownership being private, the corporation is exempt from disclosure requirements. However, as it has started a turnaround, Subway has recently provided periodic sales updates.

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Chidsey oversaw Subway's strategy, which included modernizing its technology and mobile app, revamping its menu, and increasing franchisee profitability.  According to Restaurant Business Online, Chidsey also encouraged the founders' relatives to think about selling.

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Peter Buck, a co-founder of Subway, bequeathed his 50% ownership to the company, according to a statement made earlier this year by his foundation. Buck passed away in November 2021. The other half of the business is owned by the descendants of co-founder Fred DeLuca, who passed away six years ago.

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The endeavor by Subway to resurrect itself has included an emphasis on changing its franchisees from single-unit owners to those who own numerous shops. On April 17, Subway declared that it has given five multi-unit franchisees control of 230 stores.

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Over 37,000 Subway outlets may be found in more than 100 different countries. Even though its domestic footprint has significantly decreased over the past ten years, the majority of those locations are still in the United States. The company's fast development and well-known 5-foot-long sandwich promotion put pressure on franchisees' revenues. The high-profile prosecution of former spokesman Jared Fogle and DeLuca's passing, both of which happened in 2015, significantly damaged the chain.