(Reuters) -Subway said on Tuesday it was exploring a possible sale of its business as the sandwich chain faces surging costs and mounting competition from deeper-pocketed rivals.
The Wall Street Journal said last month a potential sale could value Subway at more than $10 billion.
Founded in 1965 by 17-year-old Fred DeLuca and family friend Peter Buck, the company has been owned by the founding families since its first restaurant opened as “Pete’s Super Submarines” in Bridgeport, Connecticut.Â
It now has more than 37,000 restaurants in over 100 countries.
In 2021, Subway decided to overhaul its menu and pour more money into marketing in a bid to win back customers with its new sandwiches amid stiff competition from Popeyes and Chick-fil-A.
Subway said on Tuesday J.P. Morgan was advising the company and will conduct the sale exploration process. There was no indication of timing or assurance that a sale will occur, it added.
The company, one of the world’s largest quick-service restaurant brands, earlier this month reported a 9.2% jump in same-store sales for 2022.
(Reporting by Ananya Mariam Rajesh and Granth Vanaik in Bengaluru; Editing by Devika Syamnath)