Subway has retained lawyers and advisers to explore a sale of the company, according to the Wall Street Journal.
The outlet noted that the sale talks remain “in the early stages,” but a valuation of more than $10B is currently being floated. Both private equity and competing restaurant corporations are expected to bid, per the Journal.
The sticker price for the deal would be one of the largest in recent memory for the restaurant business, nearing Burger King/Restaurant Brands’ (NYSE:QSR) $11.4B deal for Tim Horton’s and Inspire Brands’ $11.3B acquisition of Dunkin Brands.
Restaurant Brands (QSR) previously held informal talks to purchase the sandwich chain in 2021.
According to consulting firm Technomic, Subway’s annual sales have been in a relatively steady decline for years, falling to $9.4B in 2021, about half its 2012 peak. The chain has also worked diligently to trim its hulking store count, which is still second only to McDonald’s Corporation (MCD) globally.
Read more on recent restaurant spending trends.