​Subway Completes $9.6 Billion Sale to Roark Capital

​Subway Completes $9.6 Billion Sale to Roark Capital

Posted by Emily on 2nd May 2024

Subway, the world's leading sandwich franchise, has finalised its $9.6 billion (£7.7 billion) sale to Roark Capital, a prominent U.S. private equity firm. Roark Capital, recognised for investing in well-known brands such as Baskin Robbins, Dunkin', and Arby's, has assumed ownership of Subway after several months of transaction delays.

Subway restaurants in the Philippines 14 Gdfrdymldo1999, CC BY-SA 4.0, via Wikimedia Commons

Initially revealed in August, the acquisition process encountered hurdles and was prolonged due to a U.S. Federal Trade Commission (FTC) investigation, as reported by Politico in November. The investigation focused on the potential over-concentration of market power in the restaurant sector under Roark's expanding portfolio.

This week, Subway announced the successful completion of the sale. Looking ahead, John Chidsey, CEO of Subway, expressed his enthusiasm, stating, "Our growth journey is far from over." He reiterated the company's dedication to improving food quality and customer experience, declaring, "Our next chapter will be the most thrilling yet."

Despite the change in ownership, Subway's operations remain steadfast. There are no anticipated changes to Subway's leadership team, strategic expansion efforts, or operational approaches. With a global presence of nearly 37,000 outlets across more than 100 countries, Subway continues to stand tall as a leader in the quick-service restaurant industry.

A Dunkin' Donuts restaurant in Hiawassee, Georgia, United States 01 Harrison Keely, CC BY 4.0, via Wikimedia Commons

Moreover, in March, Subway announced a collaboration with the McWin investment fund to launch approximately 600 new European outlets within the next decade. This move marks the end of over six decades of family ownership, starting from its humble beginnings in Connecticut in 1965 by 17-year-old Fred DeLuca and his partner Peter Buck.

We welcome your thoughts and comments on Subway's new chapter and its impact on the global restaurant landscape.