Subway’s CEO, John Chidsey, is leading the company’s remarkable turnaround, with a focus on international expansion, digital sales, and snack offerings.
At the Yahoo Finance Invest conference, Chidsey expressed his optimism about the impending $9.6 billion sale to Roark Capital, highlighting the franchise’s extensive franchising history as a “win-win-win” deal.
If completed, this sale will rank among the top three biggest restaurant deals, following similar transactions like Restaurant Brands’ $11.4 billion purchase of Tim Hortons in 2014 and Inspire Brands’ $11.3 billion acquisition of Dunkin’ in 2020.
CEO Points to High Growth Potential
After years of declining revenue and store closures, Subway now looks towards a brighter future. Subway’s US store closures are expected to slow down, and the chain anticipates opening 200-300 new locations in the near future.
With an increase in same-store sales, especially internationally, Subway has shifted its attention to global expansion, signing multiple international franchise agreements to establish 9,000 new stores.
Furthermore, Subway is keen on expanding in China, Italy, Japan, Vietnam, and other countries, while staying mindful of its competition.
Despite Expansion Overseas, the US Market Remains Overstored
While Subway has significant expansion potential globally, the US market is still overstored with Subway units. This presents a challenge for the brand as it seeks to attract and retain multi-unit operators for its franchises due to increased competition.
Despite these challenges, CEO Chidsey remains confident about Subway’s revival, emphasizing the potential for growth both domestically and internationally.
Finally, Chidsey acknowledges that Subway previously underinvested in technology but is now poised to increase digital sales. Additionally, the company plans to leverage snacking and catering to further drive growth with a strong focus on its digital sales to improve profitability and franchisee cost.
Clearly, the brand is looking to innovate and expand its offerings while staying true to its core values to capture more market share — a recipe for success.
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