Subway sales rose 12.1% in first quarter as stores remodeled

The sandwich chain Subway said on Monday that its global comparable sales were 12.1% higher in the first quarter and that guest visits rose, driven in part by restaurant renovations.

The privately held company is looking to boost store-level profits as it explores a possible sale, hoping to show potential private equity buyers that it can be a money maker.

Major publicly traded restaurant chains including McDonald’s Corp (MCD.N) and Chipotle Mexican Grill Inc (CMG.N) begin reporting quarterly earnings this week.

Most are expected to post positive comparable sales compared to last year, but investors will be watching for signs that prolonged inflation has started to take a toll on consumer spending.

Subway had been closing locations in recent years amid a host of problems including outdated decor and operations, overexpansion, and $5 foot-long deals that eroded franchisees’ profits.

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