Impressive store sales for Subway in Q1, comeback bid successful

  • The sandwich maker’s same-store sales jumped 12.1% in Q1 of 2023, showing that the company’s turnaround is taking root.
  • The fast food chain is looking to sell itself, with a deal likely to be finalized by late May.
  • While privately owned, the firm has been recently sharing periodic sales updates given that it has undertaken a turnaround.

American fast food chain Subway reported declared a two-digit surge in same-store sales in the first quarter as the company seeks a buyer. The growth signifies that the turnaround strategy adopted by the sandwich maker is working favorably.

Subway started offering a dozen improved ingredients and 10 revamped sandwiches in the U.S. since July 2021 as part of its comeback bid aimed to gain footing in the country. The attempt also focused on changing franchisees to multi-restaurant operators from single-unit operators.

Later on, in February this year, the company announced its plan to sell itself. It also confirmed hiring JPMorgan as advisory partner for potential sale.

The turnaround strategy was adopted under the leadership of John Chidsey, Subway CEO. He is also responsible for encouraging the business owners’ families to opt for selling the company.

Being a private entity, the sandwich chain is not required to reveal its financial results, however Subway is sharing periodic sales update ever since it has undertaken turnaround. The company’s global same-store sales and digital sales rose to 12.1% and 11%, respectively. While the growth figures for North America stand at 11.7% and 21.2%. This sales growth is attributed to price hikes as well as Covid-19 Omicron outbreak last year.

Subway has over 37,000 franchises in more than 100 countries. Under the sale bid, the restaurant is seeking a valuation of around USD 10 billion, and the second-round auction is soon to be held, as per The Wall Street Journal.

Chidsey has reportedly stated that the sale deal is likely to close by May end or early June.

It is speculated that the improved performance of the sandwich chain in the first quarter will bring the expected valuation for Subway.

Source Credit: https://www.cnbc.com/2023/04/24/subway-reports-double-digit-quarterly-sales-growth-as-sandwich-chain-seeks-buyer.html

 

 

Photo of Puja More

Puja More

Puja More holds a graduate degree in Computer Science from the University of Pune. Nurturing her passion of playing with words however, Puja undertook content writing as a career path and boasts of rich experience in content production, copywriting, and digital marketing. Presently, Puja writes articles on technology, business, and healthcare for playthemusic.biz and a few similar portals.