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Subway’s two founding families could face billions of dollars if the foot-long sandwich chain is sold.
The Wall Street Journal reported Wednesday that the fast-food chain hired consultants to review a potential sale. People familiar with the matter told the Journal that the transaction could be worth over $10 billion.
Subway was founded by the late Fred DeLuca and Dr. founded by Peter Buck. The Connecticut-based brand has been owned by the DeLuca and Buck families for over 50 years.
SUBWAY EXPLORES SELLING A SANDWICH CHAIN
Subway fast food restaurant is seen in Houston, Texas on April 29, 2022. The fast-food chain closed more than 1,000 stores in the past year and has reportedly come under scrutiny over controversial advertising campaigns and allegations of corrupt regional managers (Brandon Bell/Getty Images/Getty Images).
A Subway spokesman told FOX Business Thursday that the privately held company “does not comment on its ownership structure and business plans.”
“We remain focused on advancing the brand with our transformational journey to help our franchisees thrive and be profitable,” the spokesperson said.
Subway’s beginnings date back to 1965 when Buck loaned DeLuca $1,000 in entry fees to help create a restaurant chain that would eventually have more than 37,000 locations in over 100 countries and a network of franchisees totaling over 20,000, according to a recent press release.
Buck and DeLuca switched to a franchising model about nine years later after opening 16 stores in Connecticut, the company explains on its website.
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A worker makes a sandwich in the Subway fast food chain in Hanover, Germany, 21 August 2015. On 28 August 2015, the sandwich fast food chain is celebrating its 50th birthday. (Julian Stratenschulte/Picture Alliance via Getty Images / Getty Images)
DeLuca ran Subway for dozens of years, with sister Suzanne Greco becoming CEO in 2015, the year of his death. Forbes estimated his net worth that year at $2.5 billion.
Greco left the position in 2018 to retire. The company later had John Chidsey, who formerly ran Burger King, assume the position of chief executive at Subway, which he still holds 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 a 50% buy-one-get-one offer to customers who order through the app. (Subway/Fox News)
The privately held company reported in October that it saw same-store sales increase by more than 8% in the third quarter compared to the same three-month period a year earlier.
The company’s recent efforts include testing an “interactive, completely unattended” sandwich machine at the University of California, San Diego in September 2022 and launching its “Subway Series” menu with 12 new options in July 2022.
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Ken Martin contributed to this report.