Subway: Business Overview, Financials & Competitive Analysis
Subway scores 4/10 on the AskCyborg Cyborg Score (Mixed). Renewed leadership and value-menu initiatives show promise, but mounting debt and persistent unit closures signal a turnaround still in early innings with uncertain recovery trajectory. Subway generated $689 million in net income from $925 million in revenue as of 2026-07-06, showing improved profitability under new ownership. However, domestically, franchisees are closing.
What is Subway's industry? Subway (subway.com) operates in Fast Food Chains. AskCyborg classifies Subway under Fast Food Chains in its company registry.
Subway operates in over 100 countries with approximately 36,000 outlets and an annual revenue of $16 billion, making it the world's largest restaurant chain by location count. The company's business model revolves aro...
Cyborg Score thesis
Renewed leadership and value-menu initiatives show promise, but mounting debt and persistent unit closures signal a turnaround...
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Get Current Report FreeSubway Overview
Pro stress-test →Subway operates in over 100 countries with approximately 36,000 outlets and an annual revenue of $16 billion, making it the world's largest restaurant chain by location count. The company's business model revolves around a franchise-driven structure, an affordable and customizable menu, and a global presence, leveraging local entrepreneurs, low-investment formats, and healthy eating trends. Subway restaurants are owned and operated by Subway franchisees, meaning the company derives income from royalties rather than direct operations.
Strategic Profile
Pro stress-test →Under new leadership, Subway is working to restore the chain's former glory as the leading better-for-you sub-sandwich chain, with strong brand equity and 53% share of its segment's domestic system-wide sales. The primary challenge is solving its value equation to satisfy both customers and franchisees, given Subway's middle positioning in a sub-sandwich segment which has expanded upward with fast growth of higher-end competitors. As of the end of 2025, Roark Capital's acquisition loaded the company with $5.7 billion in debt, which will require stabilization of the royalty stream to repay.
Competitive Landscape
Pro stress-test →Subway faces competition from higher-end rivals like Jersey Mike's, requiring either product differentiation or aggressive pricing to remain competitive. Jersey Mike's filed for a U.S. IPO targeting a $12 billion valuation after Blackstone's acquisition in 2024, growing to over 3,000 locations with strong unit economics. Other competitors include Pizza Hut, Long John Silver's, Noodles & Company, and Jimmy John's Franchise.
Industry Context
Subway operates in Fast Food Chains.
Key facts
Founded: 1965 · Headquarters: Milford, US · Employees: Not disclosed · Revenue: $925 million (corporate, 2025)