Roark Capital acquires Subway

Subway accounts for 14% of the global sales in the bakery products limited-service restaurants sector.

Affiliates of Atlanta-based private equity firm Roark Capital acquired quick service restaurant brand Subway following the signing of a definitive agreement.

In a statement, Subway said the transaction is part of its multi-year transformation journey to integrate its brand and global presence with Roark’s expertise in restaurant and franchise business models.

"This transaction reflects Subway's long-term growth potential, and the substantial value of our brand and our franchisees around the world," Subway CEO John Chidsey said. 

"Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees," he added.

Roark Capital, which focuses on investments in consumer and business service firms, has $37b in assets under management.

ALSO READ: Subway inks largest master franchise deal for China expansion

According to Euromonitor International, Sub which has over 37,000 outlets globally, is leading the global bakery products limited-service restaurant sector as it comprises over 14% of sales in 2022.

“Subway has since 2021 been turning sales around by looking to focus on quality perception and investing in marketing. This sale should help this investment and push forward quality initiatives like the nationwide roll out of in-house meat slicers,” said Dorothy Calba, Senior Research Manager at Euromonitor International. 

“Sales for Subway have been very solid so far in 2023 and this sale is promising in terms of their future growth,” she added.