Roark Capital finalized its $9.6 billion Subway acquisition last week, following a sales process that started last August and was delayed by a Federal Trade Commission (FTC) review.
“The entire Subway system is excited that our sale to Roark is complete,” John Chidsey, CEO of Subway, said in a statement. “As we look to our future, our growth journey is far from over. With a continued strategic focus on delivering better food and a better guest experience, our next chapter will be the most exciting yet.”
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Roark concerns
The FTC opened an investigation into the sandwich giant’s sale in November over concerns that Roark — which also owns Subway competitors Jimmy John’s, McAlister’s Deli, Arby’s, Carls Jr., Hardee’s and Schlotzky’s — was becoming too dominant in the quick-service restaurant (QSR) space. Federal regulators approved the deal last week after those FTC concerns were rectified.
A Subway spokesperson told Entrepreneur that there are no anticipated changes to the company’s leadership team with the acquisition and that “our brand will remain the Subway guests know and love.”
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Franchise 500 comeback
Subway was once a juggernaut of franchise success, peaking at nearly 45,000 locations in 2016. But following the death of co-founder and president Fred DeLuca in 2015, Covid and the 2020s brought trouble. The chain has contracted about 10% over the past three years as franchisees struggled with higher costs and inflation, but the sandwich chain still boasts about 36,000 locations worldwide.
Once a mainstay in the Franchise 500 Top 10, Subway fell out of the rankings from 2021 to 2023. However, the brand returned to the 2024 ranking, coming in at number 199.