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Sandwich Chain Subway: Subway, the American fast food firm famous for its sandwiches, is to be sold. Private equity firm Roark Capital has agreed to buy the company for $9.55 billion. With this, the long-running auction process has come to an end. “This transaction demonstrates the company’s long-term growth potential and the value of our brand,” Subway executive vice president John Chidsey said in closing the deal.
Recently news agency Reuters said that many companies have shown interest in the auction process. Private equity firms TDR Capital and Sycamore Partners were set to team up to acquire Subway.
The company is on track Subway has grown rapidly in recent years, but the company has faced rising costs and increasing competition. Due to which the challenges have increased. Explain that in the first half of 2023, Subway sales increased by 9.3% in North America.
A 17-year-old boy started: The subway company, which came into existence in the year 1965, is still owned by its founding families. Interestingly, the company was founded by 17-year-old Fred DeLuca along with his family friend Peter Buck. The company has expanded over the years and has 37,000 outlets in over 100 countries. It is one of the largest restaurant chain companies in the world.
As for private equity firm Roark Capital, it has around $37 billion in assets under management. It specializes in franchised businesses. It has several restaurant chains, including Arby’s, Dunkin’ and Buffalo Wild Wings.