Operations

Subway reports domestic, international growth ahead of expected sale

Provided

July 25, 2023

Subway says it has achieved 10 consecutive quarters of positive sales growth thanks in part to a multi-year transformation journey it says it has undertaken while the company remains for sale, according to a press release.

The sandwich brand says it broke brand records during its second quarter as it achieved its highest AUV in North American for three consecutive months. It also hit its highest weekly AUV in the company's history.

During the first half of 2023 compared to the same period in 2022 globally Subway hit a 9.8% increase in same-store sales and an 11.1% increase in digital sales.

During the first half of 2023 North America Results, compared to the same period in 2022, the brand had a 9.3% increase in same-store sales, with the top 75% of locations (about 17,000 restaurants) up 14.5%, and the top 50% of locations (about 11,500 restaurants) up 19.8%. There was also a 17.8% increase in digital sales in North America.

"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, Subway CEO, said in the press release. "The strong sales momentum from the first half of 2023 is setting the tone for another exceptional year for Subway and our franchisees."

In recently years, Subway has enhanced its tech stack. The brand continues to see significant growth in its digital channels, which have more than quadrupled since 2019. A refreshed loyalty program is expected to roll out later this year.

Subway has increased new openings across North America by approximately 35% in 2023 and has 10,000 restaurants in the U.S. now remodeled to reflect its modern image.

The brand also recently purchased slicers for 20,000 restaurants, an $80 million investment.

Subway operates nearly 37,000 restaurants in more than 100 countries.

The brand is currently seeking new ownership.