Subway, the world’s largest restaurant chain by number of locations, has sold itself to Roark Capital Group for a possible $9.6-9.7 billion as reported by the Journal.
The deal, which was announced on August 24, 2023, is expected to close in the first quarter of 2024.
Roark Capital specializes in investing in consumer brands and the firm has a long history of success in turning around struggling businesses and owns Dunkin’, Baskin-Robbins, Sonic, Arby’s, Buffalo Wild Wings and Jimmy John’s.
Subway has been struggling in recent years and the chain has lost market share to competitors such as Chipotle and Panera Bread. It has also been hit by a number of food safety scandals.
The sale of Subway is a sign of the changing landscape in the restaurant industry.
Private equity firms are increasingly buying up struggling chains in the hopes of turning them around.
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