Subway Extends Run of North American, Worldwide Sales Growth in H1 as Search for Buyer Continues
July 25, 2023/ in MT Newswires Exclusive / by Carla Mozée
(MT Newswires) -- Subway on Tuesday marked more than two years of quarterly sales growth, with the sandwich chain seeing strength worldwide while it continues to search for a buyer.
The company said it logged 10 consecutive quarters of sales increases, with menu innovation and modernizing of restaurants contributing to growth domestically and worldwide. In North America, same-store sales rose 9.3% year-over-year in the first half of this year and digital sales increased 17.8% from a year earlier. On a global level, first-half same-store sales rose 9.8% and digital sales grew 11.1%.
Subway said it broke brand records in the second quarter of this year as it notched its highest average unit volume, or AUV, in North America for three consecutive months. The Connecticut-based company also said it reached its highest weekly AUV in the second quarter.
"Over the past two years, we've made consistent progress across all areas of our business, driving impressive sales results and positive changes for our franchisees and guests," John Chidsey, chief executive of Subway, said in the statement.
The fresh figures arrive as the company remains in the process of finding a buyer for the chain that has nearly 37,000 restaurants in more than 100 countries. In February, Subway said in a statement its shareholders were exploring a possible sale of the company, with J.P. Morgan Chase (JPM) serving in an advisory role. The company extended a deadline for bids after failing to land a desired bid of $10 billion, The New York Post reported earlier this month citing multiple sources close to the matter. A Subway spokeswoman declined to comment, according to the Post.
Subway also said Tuesday that it's on course to hit its goal of increasing new openings across North America by about 35% this year. In the first six months of 2023, Subway's top 75% of North American locations, amounting to about 17,000 restaurants, recorded a 14.5% rise in same-store sales. The top 50% of locations, or about 11,500 restaurants, saw 19.8% growth in same-store sales.
The sandwich chain didn't immediately respond to a request for comment from MT Newswires.
Copyright © 2023 MT Newswires. All rights reserved. MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.
