Subway Sold to Roark Capital for $9.6 Billion in One of the Largest Fast-Food Industry Transactions

The renowned fast-food chain, Subway, has finalized its sale to private equity firm Roark Capital for an estimated $9.6 billion, according to analysts.

This transaction comes to a close after approximately six months of seeking potential buyers.

Subway, which has operated as a family business for over six decades, will now be part of Roark Capital’s portfolio, a firm that already owns recognized brands in the fast-food industry such as Arby’s, Auntie Anne’s, Buffalo Wild Wings, and Sonic.

In an official statement, Subway described this sale as a “significant milestone in Subway’s multi-year transformation journey.”

The combination of Subway’s global presence and brand strength with Roark’s vast experience in restaurant business models and franchises promises to be a powerful alliance.

John Chidsey, CEO of Subway, expressed his optimism about the transaction, stating that it “reflects Subway’s long-term growth potential and the substantial value of our brand and our franchisees worldwide.”

This sale stands out as one of the largest transactions in the history of the fast-food industry, only surpassed by the acquisition of Dunkin’ by Inspire Brands in 2020.

Although the exact transaction amount has not been officially disclosed, sources like The Wall Street Journal have reported that the amount is “around US$ 9.6 billion,” as noted by CNN.

With this acquisition, Roark Capital plans to implement significant changes in Subway, aiming to consolidate the number of franchisees, innovate the menu, and attract more consumers in a highly competitive market.

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Given Roark Capital’s experience in driving the growth of restaurant brands, Subway is expected to experience a resurgence and expansion under its new management.

Despite Subway’s efforts to boost its sales in recent years, in 2022, the number of Subway establishments in the U.S. decreased to 20,576, representing a significant drop from its peak in 2015 when it had 27,219 locations.

With information from CNN

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