In this photo illustration, a Subway sandwich is seen on a table at a Subway restaurant on January 12, 2023 in Austin, Texas.
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Sandwich giant Subway confirmed Tuesday it is exploring the possibility of a sale.
The deal could be worth more than $10 billion, according to a report last month from the Wall Street Journal, which first reported that the company had counsel to explore a sale.
Subway said Tuesday JP Morgan advised the Connecticut-based company and will conduct the sales exploration process. The company did not specify any time frame and warned that the process may not result in a sale.
“The management team remains committed to the future and will continue to execute a multi-year transformation journey, which includes a focus on menu innovation, restaurant modernization and overall guest experience improvement,” the company said in a release.
Subway, which has more than 37,000 restaurants in more than 100 countries, said earlier this month that same-store sales rose 9.2% last year. Same-store sales at its North American locations are expected to grow 7.8% in 2022, Subway said, surpassing its ten-year average weekly sales record.
Subway is not required to disclose financial results because it is privately owned, but it recently shared a sales update as it faces a turnaround effort.
The company has reported eight consecutive quarters of sales growth, the company said in a release earlier this month. Digital sales have more than tripled since 2019. The improvement marks a marked reversal after years of declining sales.
Subway also operates with a smaller footprint: The number of company locations fell 22% from 2015 to 2021. The company plans to renovate 3,600 locations in North America and increase franchisee profits this year, CNBC previously reported.
The foundation for Subway founder Peter Buck, who died in November 2021, has announced that he is leaving 50% ownership to the organization, meaning it will be half owned by the charity. It’s unclear if that will lead to a potential sale.
– CNBC’s Amelia Lucas contributed to this report.