Subway, one of the most renowned brands in the fast food industry, has attracted attention not only for its innovative products but also for its significant financial decisions. Despite not having conducted an IPO, the company has maintained its position as a successful private business. To explore more fascinating information about businesses and financial trends, check out the article on CryptoFinHub.
1. Overview of Subway
Subway, a globally recognized fast food chain, was established in 1965 in Connecticut. The brand specializes in submarine sandwiches, wraps, salads, and fresh beverages. Initially named Pete’s Super Submarines, after its founder Peter Buck, the name was changed to Subway in 1972. Subway began franchising in 1974 and quickly became one of the most successful fast food chains in the world.
On April 30, 2024, Subway was sold to Roark Capital, a prominent private equity firm, for a value of $9.6 billion. Roark Capital not only owns Subway but also other brands such as Culver’s, Carl’s Jr., Jimmy John’s, and Arby’s, further expanding its portfolio in the restaurant industry.
According to Subway’s Q1 2023 earnings report, the company recorded strong growth, with same-store sales rising by 12.1% compared to the previous year, alongside impressive growth in digital sales, which increased by 11.4% globally. These figures reflect Subway’s outstanding success and its potential for sustainable development in a highly competitive market.
2. Does Subway conduct an IPO?
As of now, Subway has not announced any official information regarding an Initial Public Offering (IPO) or a specific timeline for this offering.
Back in 2010, Fred DeLuca, the founder of Subway, shared with Nation’s Restaurant News that one of the main reasons the company had no intention of going public was the conflict of interest between private shareholders and the public. He stated:
“We are not sure that the goals of public shareholders will align with those of us and our franchise partners.”
Additionally, another significant factor preventing Subway from considering an IPO is that the company does not face a need to raise capital from the stock market for growth. Subway has consistently maintained a stable and profitable financial situation, so opening the door for external investors to purchase shares in an IPO is not a solution the company requires.
3. How to invest in Subway?
Invest in ETFs that track restaurants
One of the simplest and most effective ways to invest in Subway is by participating in Exchange-Traded Funds (ETFs) that track the restaurant industry. These funds focus on companies operating in the restaurant sector, including Subway. For example, funds like the Consumer Staples Select Sector SPDR ETF (XLP) and AdvisorShares Restaurant ETF (EATZ) hold stocks of many companies within this industry. Investing in these ETFs allows you to gain exposure to multiple restaurant brands, including Subway, and potentially benefit from the overall growth of the sector. This helps mitigate risk, as you are not investing in a single company but in the entire industry.
Open a Subway franchise
In addition to investing through ETFs, another option to get involved with Subway is by purchasing a franchise. When you buy a Subway franchise, you are essentially investing in a small business with a proven model. The franchise fee for Subway typically ranges around $15,000, but you will also need to prepare additional capital for opening and operating the store, including leasing space, equipment, and staffing costs. Although the initial investment can be quite high, if your store is successful, the profits can be very rewarding. Subway franchising offers a promising business opportunity, especially if you are knowledgeable about the market and have a strong operational strategy.
4. Frequently asked questions
Is Subway listed on the stock market?
Currently, Subway is not listed on the stock market as the company is privately held. However, if the company decides to conduct an IPO in the future, this may change.
What is the current stock price of Subway?
Since Subway’s shares are not publicly traded, there is no specific stock price for the company.
What is the stock symbol of Subway?
Subway does not have a stock symbol, as the company is not listed on any stock exchange.
Who owns Subway today?
After many years of being family-owned, Subway was sold to the private equity firm Roark Capital. Although there is no official information on the exact value of the deal, according to the Wall Street Journal, Subway could be valued at approximately $9.6 billion as of 2024.
With Subway’s strong growth and solid financial strategy, the company still has many opportunities ahead. To stay updated on important news about businesses and the market, be sure to follow the information on CryptoFinHub.
