Roark Capital is buying your favourite sandwich chain – Subway

August 25, 2023 02:59 AM AEST | By Invezz

Roark Capital is buying your favourite sandwich chain – Subway — Image source: Invezz

How much is Roark paying for Subway?

Earlier this week, the private equity firm was reported willing to spend $9.55 billion on Subway.

But the press release this morning did not confirm if that indeed was the price it was paying for the said acquisition. Reacting to the news, Neil Saunders – a retail analyst at GlobalData Analytics said on Thursday:

In essence, Roark brings more to the table than other investors would have, and while the deal closed based on cold hard cash, the outcome is a good one.

Others interested in buying the sandwich chain included Sycamore Partners and TDR Capital.

Subway sales have been in an uptrend

Roark Capital has a bunch of restaurant chains in its portfolio but Subway beats them all (except Dunkin’) in terms of annual sales and the total number of restaurants.

The sandwich chain has seen positive comparable-store sales over the past ten quarter straight as it refreshed its menu and invested aggressively in technology. John Chidsey – the Chief Executive of Subway said today in a press release:

This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchises around the world. Subway has a bright future with Roark.

Subway has a footprint of about 20,600 locations across the United States. That’s down sharply from 27,100 it had in 2015, though.

The post Roark Capital is buying your favourite sandwich chain – Subway appeared first on Invezz.

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