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The Markets
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Food & drink

Subway dishes up strong 1Q sales growth as it prepares for possible multibillion-dollar takeover

Subway has reported its ninth consecutive quarter of positive sales growth and said its second quarter started strongly as volumes soared to their highest in 13 years.

The restaurant chain said global same-store sales jumped 12.1% in the three months to March 31, 2023, with digital sales increasing by 11.4%. North American same-store sales improved by 11.7%, with its top locations showing even stronger growth. Digital sales increased by 21.2%.

Kicking off the second quarter, in April, Subway said it achieved its highest weekly average unit volume in the US since 2010.

"Our continued impressive performance demonstrates that our efforts to build a better Subway and win back the hearts and minds of sandwich lovers around the globe is working," CEO John Chidsey said in a statement.

"With strong sales momentum across our restaurants and a refreshed focus on strategic brand growth, there has never been a more exciting time to be part of the Subway brand."

Meanwhile, the Wall Street Journal reported earlier this month that more than 10 potential suitors are conducting due diligence ahead of a second round of bidding for Subway, with the privately-owned company aiming for a valuation of $10 billion or more.

Private equity firms Advent International, Bain Capital and TPG are reportedly looking to team up to place a bid for the chain.

Contact the author at stephen.gunnion@proactiveinvestors.com

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