New Menu Boosts Sales at Subway

Subway reported its strongest sales since 2013 in the wake of a complete make-over of its menu.

In the middle of July of this year, Subway’s US restaurants began to offer ten new or better ingredients in addition to ten re-configured or original sandwiches. The changes have been under consideration for over two years, and include new types of bread, better protein choices, and new toppings like mashed avocado.

August sales were the best they have been in eight years, and the projection for sales for the end of 2021 surpass $1 billion. Subway is a privately owned business and does not need to report its monthly sales.

“Our loyal regulars — in addition to many first-time guests — are commenting to our team that they taste a real difference in our new sandwiches and ingredients,” said Subway franchisee David Liseno in a statement.

The restaurant chain grew enormously during the 2008 financial crisis after the company offered a foot-long sandwich for $5. Subway became the largest in the US by number of units. Over the years, however, competitors ate into their market share and sales went south.

Subway’s parent company, Doctor’s Associates, reported annual revenue in 2020 of $689.1 million, down 28% since 2019. Total number of stores has also been in decline since 2016. At the end of 2020, the chain had 22,201 locations in the US.

About James Cannon

James Cannon is an experienced hedge fund analyst. He has served on the advisory boards for various different Fortune 500 companies as well as serving as an adjunct professor of finance. James Cannon has written for a variety of Financial Magazines both on and off line. Contact James at james[at]