A private equity company buys Subway
Miami-based private equity firm Roark Capital, which has around $37 billion in assets, is buying the Subway restaurant franchise. The agreement’s terms were kept a secret.
On August 21, the Wall Street Journal revealed that Roark was on the verge of paying $9.6 billion to acquire Subway.
John Chidsey, the CEO of Subway, stated, “This transaction reflects Subway’s long-term growth potential, as well as the substantial value of our brand and our franchisees around the world.” “Subway is dedicated to maintaining our focus on a win-win-win strategy for our franchisees, our guests, and our employees. We see a bright future with Roark.”
According to the corporation, Roark Capital invests in consumer and business service companies, with a focus on those that use a franchise business model. Arby’s, Auntie Annie’s, Baskin-Robbins, Buffalo Wild Wings, Carvel, Cinnabon, Carl’s Jr./Hardee’s, Culver’s, Dunkin’, Jamba, Jimmy John’s, McAlister’s Deli, Miller’s Ale House, Moe’s, Nothing Bundt Cakes, Schlotzsky’s, Seattle’s Best Coffee, Sonic, and The Cheesecake Factory are among the food-related brands currently included in its portfolio.
Subway announced at the end of July that it has achieved positive sales for ten straight quarters. The company’s same-store sales have increased by 9.8% and its digital sales have increased by 11.1% globally. The company reported a 17.8% increase in digital sales and a 9.3% increase in same-store sales in North America.
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According to the corporation, the Subway chain has more than 37,000 locations and is present in more than 100 countries.