Subway sold to Jimmy John’s, well, kind of. Roark Capital Group, the private equity firm that owns Jimmy John’s and other foodservice investments like Arby’s, Baskin Robbins, Cinnabon, Dunkin Donuts, The Cheesecake Factory, and many more, bought the sandwich franchise for a whopping $9.6 billion, making it one of the largest fast-food acquisitions in history.

For nearly 60-years, Subway was family-owned and operated and became one of the largest fast-food chains in the world. The company began seeing declines in revenue in 2015 after the Jared Fogel scandal but the declines continued, due in part to increased competition and their limited menu. Subway began making positive changes in the business in 2021 that included a more modern image and the remodeling of 10,000 of its U.S. restaurants. In July of this year, the company made an $80 million investment to introduce freshly sliced meats to 20,000 restaurants when they launched Deli Heroes, a collection of the ultimate deli subs. Yet, so far in 2023, Subway recorded a 24% loss in revenue and an increase of nearly 10% in same-store sales.

John Chidsey, CEO of Subway, stated in a press release, “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.” With Roark’s knowledge and expertise, Subway plans to prioritize sales growth, menu innovation, restaurant modernization, enhancement of the guest experience, and global expansion. The sandwich franchise will make a nice addition to Roark Capital Group’s $37 billion asset value and portfolio of restaurant and food brands.