As of August 25, 2023 Subway, a famous sandwich place around the globe, has now been sold for billions of dollars to private equity firm Roark Capital. Subway is one of the world’s biggest sandwich places and is known for its delicious, customizable sandwiches. Subway has been a family-owned business for nearly sixty years. It was founded in 1965 by two men named Peter Buck and Fred DeLuca. In February of 2023, Subway put itself up for sale.

According to Reuters, Roark Capital offered $9.6 billion and Subway must meet the cash flow requirements within 2+ years after the deal is finalized to pay the $8.95 billion deal price. This exchange is very significant in the fast food industry. Roark Capital has investments in other big fast food brands such as Arby’s, Auntie Anne’s,  Carvel, Sonic, and more.

So, why would Subway stop this family business and sell it? There’s a very easy answer to this question: it just wasn’t doing well. Subway has lost market share especially because of new competition joining the fast food industry leading them to sell Subway. Although Subway is now under new ownership, their sandwiches and regular menu should stay relatively the same.

Sources:

Louallen, Doc. “Subway sandwich company sold to Roark Capital for billions.” USA Today, Gannett Satellite Information Network, 25 August 2023, https://www.usatoday.com/story/money/food/2023/08/25/subway-company-sold-roark-capital-billions/70675156007/. Accessed 10 October 2023.