Subway, a well-established family-owned enterprise with a nearly six-decade legacy and a diverse portfolio of sandwich who owns Subway shops, recently underwent a significant development as it became the latest addition to the portfolio of the private equity firm Roark Capital.
In a press release issued on Thursday, the sandwich company disclosed that it had entertained an acquisition offer from Roark Capital. According to a report from The Wall Street Journal, the proposed acquisition was valued at $9.6 billion, marking a slight adjustment from the initial listing of $10 billion in February.
As part of the terms outlined in the agreement, Subway is required to achieve specific cash flow milestones within the next two years or a longer stipulated period following the finalization of the deal. This performance-based structure aims to facilitate the payment of the entire $8.95 billion deal price, as reported by Reuters. It is noteworthy that the terms of the deal do not encompass any earn-out provisions. This strategic acquisition by Roark Capital reflects the ongoing evolution within the business landscape, underscoring Subway’s enduring appeal and market presence.
Who is the CEO of Subway now?
Subway’s CEO, John Chidsey, actively engages in quality control by regularly sampling the chain’s diverse menu. Since assuming the role of CEO in 2019, Chidsey shared with The Wall Street Journal that he frequents Subway for meals approximately three times a week.
Notably, Chidsey prefers to dine in the company’s own cafe, situated within Subway’s recently established corporate headquarters in Miami. The headquarters boasts a unique feature—a simulated restaurant where staff can evaluate and test new menu offerings, complemented by a convenient cafeteria.
When asked about his personal favorite among Subway’s offerings, Chidsey revealed to The Journal that the Turkey Cali Club holds a special place on his palate. This particular sandwich, a product of Subway’s menu overhaul, comprises turkey, bacon, mozzarella, smashed avocado, and salad.
It’s worth mentioning that Chidsey has previously expressed his affinity for another who owns Subway creation. In a 2021 interview with CNN, he acknowledged the controversial tuna sandwich as one of his other favored subs from the chain. This commitment to experiencing Subway’s menu firsthand underscores Chidsey’s dedication to ensuring the quality and appeal of the offerings at the helm of the popular sandwich chain.
Who bought Subway recently?
Subway has concluded its six-month quest for a buyer by finalizing a deal with private equity firm Roark Capital. This transaction marks the conclusion of the sandwich chain’s almost sixty-year tenure as a family-owned business.
In an official statement, Subway described the sale as a “significant milestone in Subway’s multi-year transformation journey,” emphasizing the synergies achieved by merging Subway’s global presence and brand strength with Roark’s extensive expertise in restaurant and franchise business models.
Roark Capital, known for its strategic investments, has a diverse portfolio that includes major players in the restaurant industry such as Arby’s, Auntie Anne’s, Buffalo Wild Wings, Carvel, and Sonic, among others. The acquisition underscores Subway’s strategic decision to align itself with a partner boasting a proven track record in fostering success within the restaurant and franchise sector.
In 2020, McDonald’s CEO Chris Kempczinski revealed his dining habits, sharing that he frequents the fast-food chain for breakfast and lunch five days a week. On his occasional “cheat day,” he indulges in a Quarter Pounder for lunch. Alternatively, when opting for a healthier choice, Kempczinski leans towards a salad or a Filet-O-Fish with double ketchup and no tartar sauce.
Former Carl’s Jr. and Hardee’s CEO Andrew Puzder, back in 2016, disclosed his regularity in dining at the chains he led, estimating four or five visits per week. Meanwhile, in 2005, the then-CEO of Burger King, Greg Brenneman, identified himself as a “Double Whopper fanatic.” Despite his affinity for the iconic burger, Brenneman acknowledged his penchant for the chain’s impressive salad with chicken and dressing, highlighting the diversity of his fast-food choices.
Did Subway get bought out by Arby’s?
In 1965, nuclear physicist Peter Buck and Fred DeLuca co-founded the inaugural who owns Subway restaurant, initially named “Pete’s Super Submarines,” situated in Bridgeport, Connecticut. The establishment underwent a transformation in 1968, adopting the name we recognize today: Subway. Unfortunately, DeLuca passed away in 2015, followed by Buck in 2021.
As of today, who owns Subway, headquartered in Milford, Connecticut, stands as one of the world’s premier restaurant chains, boasting a vast presence with 37,000 outlets spanning over 100 countries.
In recent years, however, the chain faced challenges in retaining market share, contending with the rapid expansion of formidable competitors such as Panera and Firehouse Subs. These rivals distinguished themselves with diverse menus and contemporary store concepts. In response, Subway initiated a comprehensive store modernization effort in 2017. By 2021, the brand not only refreshed its menu and upgraded ingredients but also introduced a compelling line of chef-developed sandwiches.
In a pivotal move to fuel further growth, Subway entered into an acquisition agreement with Roark Capital. With a management portfolio totaling $37 billion, Roark Capital specializes in franchised businesses and boasts ownership of multiple renowned restaurant chains. Notable brands under its umbrella include Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and Sonic. This strategic collaboration aligns with Subway’s vision for sustained growth and revitalization in the dynamic landscape of the food industry.
Why did Jimmy John’s buy Subway?
Roark Capital serves as the majority investor in Inspire Brands, a conglomerate encompassing well-known names such as Arby’s, Baskin Robbins, Buffalo Wild Wings, Dunkin’, Jimmy John’s, and Sonic. Additionally, Roark Capital has a significant stake in Focus Brands, which includes Auntie Anne’s Pretzels and Jamba Juice.
Subway’s CEO, John Chidsey, expressed confidence in the recent transaction, emphasizing its alignment with Subway’s long-term growth potential and the substantial value of the brand and its global network of franchisees. Chidsey, who assumed the role in 2019 following his tenure as CEO and chairman of Burger King, sees a promising future for Subway under Roark’s guidance. He underscores the commitment to maintaining a win-win-win approach that benefits franchisees, guests, and employees alike.
A source familiar with Inspire Brands clarified to Yahoo Finance that the restaurant conglomerate, despite its ownership involvement, will not be directly engaged in Subway’s day-to-day business operations. This strategic collaboration positions Subway for sustained growth while allowing it to maintain its operational independence within the broader framework of Roark Capital’s diverse and successful investment portfolio.
Leave a Reply