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Subway’s two founding families could see billions of dollars roll in if a sale of the foot-long sandwich chain occurs.
The Wall Street Journal reported Wednesday that the fast-food chain has hired advisers to explore a possible sale. People familiar with the matter told the Journal that the transaction could be worth more than $10 billion.
Subway was founded by the late Fred DeLuca and Dr. Peter Buck. For more than 50 years, the DeLuca and Buck families have owned the Connecticut-based brand.
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The Subway fast food restaurant is seen on April 29, 2022 in Houston, Texas. The fast-food chain closed more than 1,000 stores last year and has reportedly come under scrutiny over controversial ad campaigns and allegations of corrupt regional managers, (Brandon Bell/Getty Images/Getty Images)
A spokesperson for Subway told FOX Business on Thursday that the private company does “not comment on ownership structure and business plans.”
“We continue to focus on advancing the brand with our transformation journey to help our franchisees succeed and be profitable,” the spokesperson said.
Subway’s beginnings date back to 1965, when Buck loaned DeLuca $1,000 in start-up funds to help create what would become a restaurant chain that has more than 37,000 locations in more than 100 countries, as well as a network of franchisees totaling more than 20,000, according to a recent press release.
Buck and DeLuca transitioned to a franchise model about nine years later, after opening 16 stores in Connecticut, the company explains on its website.
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A worker prepares a sandwich inside the Subway fast food chain in Hanover, Germany, August 21, 2015. The sandwich fast food chain will celebrate its 50th anniversary on August 28, 2015. (Julian Stratenschulte/photo alliance via Getty Images/Getty Images)
DeLuca was in charge of Subway for decades, with his sister Suzanne Greco becoming CEO in 2015, the year of his death. Forbes estimated his net worth at $2.5 billion that year.
Greco left the post in 2018 to retire. Later, the company asked John Chidsey, who once ran Burger King, to take on the role of Subway’s general manager, which he continues to hold today.
In November 2021, Subway announced the death of 90-year-old Buck. The nuclear physicist’s net worth was estimated at $1.7 billion, according to Forbes.
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Subway is offering buy, get 50% off for customers who order on the app. (Subway/Fox News)
The privately-held company announced in October that, compared to the same three-month period a year earlier, it recorded a more than 8% increase in same-store sales in its third quarter.
The company’s recent initiatives include testing an “interactive, fully unattended” sandwich vending machine at the University of California, San Diego in September 2022 and rolling out its “Subway Series” menu featuring 12 new options in July 2022.
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Ken Martin contributed to this report.