Subway is for sale. There has been a general belief that the fast-food restaurant franchise company was in trouble. Not so. Same-store sales in the most recent quarter rose 12.1%. McDonald’s probably envies that, along with almost every fast-food chain operator in America. (These are the 30 oldest restaurant chains in America.)
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John Chidsey, the CEO of Subway, indicated the balance of the year would be as good, if not better: “With strong sales momentum across our restaurants and a refreshed focus on strategic brand growth, there has never been a more exciting time to be part of the Subway brand.”

The Subway news is also impressive because the company has over 20,000 locations in America. McDonald’s has just over 13,000.

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Among the arguments about why Subway has a bright future is that fast-food locations attract people with low budgets during a recession. Preparing food at home can be expensive, particularly during an inflationary period.

Subway has done a good job joining other fast-food chains with an app that lets people order food before they enter a location. And it has a loyalty program. These are enough to keep it competitive, but not enough to allow it to outperform. Although it is not clear to outsiders, its menu must be well-designed to attract customers at an impressive rate.

Subway’s owners hope to get at least $10 billion for the company. Based on sales data, they should get that.

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